Appendix

Appendix A: Network Access
The following were created in order to improve the Telecommunications Infrastructure in Brazil.
· Embratel – is the Brazilian Telecommunications Company created in 1965 to link the entire country and enable automatic international communications.
· Telebras – created in 1972 with the objective to plan and coordinate telecommunications throughout the country. It acquired and absorbed more than one thousand small and medium sized telephone companies and consolidated them into state level companies.
· Anatel – the Brazilian Telecom regulatory agency, created in 1995 which authorized the entry of private, domestic and foreign investment into the Brazilian telecommunications sector.
Satellites that are part of the Infrastructure
National: There are 64 earth stations that work with the Brazilian satellite system
International: 3 coaxial submarine cables; satellite earth stations (3 Intelsat - Atlantic Ocean- and 1 Inmarsat -Atlantic Ocean Region East)

Mobile Cellular Systems
· The Mobile Cellular Service was implemented in Brazil in 1990 and until 1996, the country's cellular telephony was exclusively analog.
· Three different cellular technologies coexist- one analog, AMPS (Advanced Mobile Phone Service) and two digital, TDMA (Time Division Multiple Access) and CDMA (Code Division Multiple Access).
· The digital technologies have gradually replaced the analog system, primarily because they present advantages, such as better network management, and a significant number of additional services, including access to data communication and to the Internet.
· Global Satellite Mobile Service is beginning to play an important role in Brazil. At the end of 1998, SMGS employing non-geostationary systems began to be operated in the country.
Trunking Service
· By the end of 1999, the trunking service, known in Brazil as the Specialized Mobile Service, reached 279 thousand accesses.
Internet Availability
Brazil is the tenth country in the world with the highest number of people connected to the Internet and the first country among the Latin American countries.
· Brazil has 14.4 million Internet users but this number is projected to increase to 34.5 million users by 2004.
Percentage of Public Schools (with more than 100 students) with access to the Internet in Dec/99:
Elementary School: 3.2%
High School: 10%
Percentage of Private Schools (with more than 100 students) with access to the Internet in Dec/99:
Elementary School: 39,2%
High School: 58,9%
Brazil currently has over 400 ISPs. In 1999, the number of ISPs subscribers was 2,200,000.
· The biggest ISPs in Brazil are: UOL (Universo on Line), IG (Internet Gratis), and Zaz.
· Brazilian Internet service provider market was 100 percent national. Since then, international Internet companies such as Argentinean IMPSAT (from Argentina), Uruguayan Starmedia and the American firms AOL, YAHOO! and PSInet are now providing Internet service.
Domain names in Brazil:
· In 1996 Brazil had 7,574 "registered" domain names.
· In February 2000 this number jumped to 174,163, an increase of 2,199.49% in less than four years.
· Brazil has 56 generic domain names that are divided in three categories
1. Institutions: 23 different extensions such as .COM.BR for businesses and .PSI.BR for Internet service providers.
2. Professions: 32 different extensions such as .JORN.BR for Journalists and ENG.BR for engineers.
3. Personal: one extension .NOM.BR
Number of Internet Hosts:
· Brazil had 446,444 hosts in jan/2000 compared to only 74,458 in 1996, an increase of approximately 84% per year.
· Brazil takes the 13th place as a country with the highest number of hosts in the world and, again, the first place among the South American countries.
 

Broadband
 
· ADSL/Cable Modem Operator competition is causing equipment prices to fall, making broadband more accessible. In Brazil, ADSL subscribers are expected to top 1 million in 2003 with the number of cable modems increasing from 60,000 in 2000 to 827,000.
 
The following are essential in having an efficient Internet Infrastructure. These are statistics according to the World Bank’s World Development Report.
 
· Telephone main lines: 182 (per 1,000 people)
· Mobile phones: 136 (per 1,000 people)
· Personal Computers: 44.1 (per 1,000 people)
 
Wireless Future
 
· 1 in every 4 Latin Americans will own a mobile phone by 2004 [IDC]
· Greater Mobile Internet Access : more than 50 million people in Latin America will surf the Net from their cell phone in 2005 [Jupiter]
· Users: 21 million in 2000 to 41.9 million by the end of 2003.
· There are 20 million subscribers in Brazil with a current mobile market penetration of 12 per cent.
· Mobile penetration in the São Paulo City area is currently only 17 per cent.
· The penetration ratio is up to 30 per cent if adjusted to GDP per capita and income distribution.
· Major research companies estimate that there is potential for 35 million new subscribers in a three-year time frame with the Personal Communication System (PCS) license awards.
· Deregulation and increasing competition are forcing operators to add scale, new products capability and geographical reach.
· Capital spending is needed to keep up with subscriber growth, expanded coverage and client desire for improved quality and services.
· Total telecom investment in 2001–2005 will easily reach A$80 billion.
· The GSM network structure at 1.8 GHz will need more radio base stations to cover high-density areas.
· It is estimated that the build out costs for the new networks will reach A $6 billion during the next three to five years.
(source: www.austrade.gov.au)
 
 
 
 
Hardware and Software

The computer hardware sector is one of the leading sectors in Brazil with a reported market of approximately US$ 7.3 billion in 1999.
In the first quarter of 2000, the computer hardware and peripherals segment grew by almost 80% in Brazil, in comparison to the same period of 1999. Approximately 2.5 million PC units were manufactured in 1999 and 1.5 million desktops were sold in Brazil in 1998
Approximately 63% of the computer hardware market in Brazil is dominated by local production. Among the local companies, the major players are ITAUTEC, UIS, Tropcom, and Microtec. These companies benefit from their long established experience in Brazil.
Brazil is also leading the way in software consumption. Brazil recorded software sales of $1.76 billion in 1998 and sales have grown to $3.7 billion in the year 2002.
According to the Ministry for Science and Technology, the number of Brazilian software companies in the domestic market is estimated on 4,000.
The software industry is made up of:
· Developers of packaged and custom software
· Companies which embedded software in their products
· Companies which develop Internet-related software.

Brazilian software companies performed well between 1995 and 1998 with an average growth of 31.6%, slightly less than that of American software houses (32.1%). By comparison, Western European companies grew an average of 19.6%; Japan, just 3.1 and in the rest of the world, 9.6%.
· Number of software houses in Brazil: 4,000
· Number of employees in Brazilian software houses: 98,500
· Global revenue of Brazilian software houses: US$ 3.5 billion
 
  
Appendix B: Network Society
 
Brazilian Computer User Data
Recent data collected from 15,100 Brazilian computer users along 9 major cities, indicates a significant increase in the number of people accessing the net. Relevant numbers are: 56% are men; 47% considered heavy- users (everyday, almost everyday access); 29% medium- users (at least once a week) and 4% light- users (rarely or once a month).
With a growth rate of almost 170% per year, the Brazilian Internet users already total approximately 13 million, 70% of which do not have their own PC and use PCs from third parties, at the company where they work, at school or at friends and relatives’ homes. Electronic mail, information search, and entertainment uses, such as chats and on-line games, are the most frequent uses of the Internet.
According to the Nielsen/Net Ratings 2002 Global internet Trends, Brazilians ranked first worldwide in chat-room usage—41% of the country’s online population visits chat rooms. Brazilians ranked first in online music usage at 48% and second in the use of instant messaging at 42%.
Academic articles hold a prominent first place of most interesting activity. Hard news and politics is next, followed by culture (art, music) and commercial sites to buy goods/services. The least interesting are: Entertainment news, financial news, sports, and chat.
20% of all banking transactions are already made through the Internet.
 
Appendix C:  Network Economy:
 
The main barriers to E-commerce in Brazil are as follows:
1. Expensive internet access relative to per capita income.
Even though recent changes in the telecommunication structure may result in a reduction of services fees, the greatest barrier to widespread Internet adoption is still the high cost of getting online. Local telephone charges are high and currently billed on a per minute basis; less than 10% of all households can currently afford to buy a PC and pay the Internet service fee. This scenario is expected to change in the near future, with the entrance of new players in the telecommunications sector.
2. Security of transactions questioned.
The problem regarding online security is twofold: unreliable payment systems and unreliable delivery systems.
Regarding the payments, Brazilian shoppers assume full risk of loss when they give out their credit card numbers and, for this reason, almost 30% of the Internet users are afraid of using their cards online. Fortunately, due to the strong leadership of the banking sector in establishing local pilot projects of Secure Electronic Transactions (SET) based platforms, Brazil will be out in front compared to its neighbors.