Not only does Brazil have the economic means to improve its infrastructure, it has the technologogical capability to deploy leading edge solutions to complex technical problems. This page will explore some of the economic drivers of the internet in Brazil as well as the economic impact of Brazil's internet revolution. As a result, the number of service providers, the pattern of ownership, the sources of financing and the regulatory environment have all changed dramatically The poor record of state-owned enterprises in fulfilling the needs of the local economies in the area of telecommunications, as well as rapid technological progress in the sector played an important role in favoring the privatization trend around the world. After privatization, private owners tend to pursue new business opportunities leading to continued big investment levels. So, technological convergence, in turn, is opening new opportunities for competing in the telecommunications industry.
Brazil is a good example.
Brazil has made a commitment to end the monopoly in basic telephone and to submit improved commitments one year from the passage of the new telecommunications law. In Brazil s cellular communications market, where competition was introduced in 1997, the number of subscribers has grown from 800,000 in 1994 to 11 million at present, an increase of about 1,200 percent, said Juarez Quadros do Nascimento, executive secretary of Brazil s Ministry of Communications. Existing foreign limits on cellular telephone and satellite transport services were phased out by 1999. Overall, these commitments mean that many of the LAC countries are heading toward full-fledged competition. This also means that foreign investors will have continued interest in the region.