Brazil - Conditions for Broadband Allowance Limitation Practices

Telecommunications and Information Technology

After the announcement that fixed broadband service providers will start reducing speed, discontinuing the service or charging for surplus traffic after the exhaustion of the contracted allowance, the Brazilian National Telecommunications Agency ("ANATEL") published a decision subjecting the adoption of these practices to certain conditions.

In its decision, the ANATEL pointed out that, although the measures contemplatedby the service providers are in accordance with the Regulations of the Multimedia Communication Services - SCM (ANATEL Resolution 614), their implementation will depend on the cumulative fulfillment of conditions set out in the General Regulations of Telecommunication Services’ Consumer Rights - RGC (ANATEL Resolution 632). This includes the provision of tools to enable (a) the monitoring of data consumption;(b) alerts to consumers when the allowance is close to its end; (c) the identification of consumer profiles; (d) a detailed historic of use; and (e) the possibility of comparing prices. In addition, consumers should be informed in advance of the existence and availability of these tools and allowance limitation conditions should be explained in the offers for consumers, both through public advertising and direct customer service in physical stores orother service channels.

According to the ANATEL, fixed broadband service providers may only adopt the restrictive practices mentioned above 90 days after the publication of a ruling by the ANATEL’s Consumer Relations Superintendence attesting compliance with the aforementioned conditions.