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Network Access
Brazil is the undisputed leader in both technology and
telecommunications in Latin America and is home to nearly half of Latin
America's internet users. Not only does Brazil have the economic means and
political will to improve its infrastructure, it has the technological
capability to deploy leading edge solutions to complex technical problems.
Although (due mostly to the fruits of privatization) the network infrastructure
in Brazil has been developing rapidly in recent years, it is still very uneven
in scale and scope. Access to this infrastructure has not been advancing at the
same pace. Ehile, the Brazilian business triangle (that includes São Paulo, Rio
de Janeiro, and Minas Gerais) has high-capacity fiber, virtual private networks,
and bandwidth close to that of the United States and Europe. Much of the
countryside however, has no access at all.
Internet Affordability (Stage 3)
Since January 2000, the Internet market profile in Brazil includes free Internet
service providers, such as "Internet Gratis" (IG) which, in its first forty five
days of operation, had a user base of 800,000 Internet subscribers. The speed at
which free access is evolving in Brazil is forcing established providers to
adapt to the new environment. The cost of Internet access in Latin America
varies depending on which country you live in. According to the report,
"Internet Topology and Connectivity in the Americas”, an average net user in
Brazil pays $26.96 a month for the basic service.
Network Speed and Quality (Stage 3)
Brazil had its first national Internet backbone with the inception of RNP2. This
newly established national network gives Brazil a first-ever 100Mbps pipeline,
with capacity of up to 155Mbps. Brazil's former pipe peaked at speeds of 2Mbps.
A critical variable in order to have quality Internet service is obviously
speed; both of access (in the last mile), as well as in the backbone. As a
general rule, the main limiting speed is that of the phone line between the user
and the provider, which is measured for example, between 28.8Kbps to 56.6 Kbps.
Companies are deploying impressive network architecture in Brazil. Since 1997,
around 13,500 kilometers of optic fiber cables have been installed per year,
with a worth of US$3 billion in annual investments.
Hardware and Software (Stage 4)
The computer hardware sector is one of the leading sectors in Brazil with a
reported market of approximately US$ 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
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.
Service and Support (Stage 3)
Service and support from internet service providers in Brazil may not be as
helpful as it is in the US. The provider's attitude is one of “if you are not
happy go somewhere else. We don't need you here." Slowly but surely this
attitude has been changing since there are many Internet providers that are now
offering free web service. This increasing competition is encouraging internet
service providers to improve their customer service in order to retain their
customers. With regards to customer service and support from Brazilian software
companies, consumers can expect to get the higher level of customer service. Our
research suggests that the Brazilian software industry is more matured than the
ISP industry when it comes to customer support and service.
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