With a population of approximately 170 million people, Brazil ranks as the sixth most populous nation in the world. In 2002, Brazil had the largest economy in Latin America, with a gross domestic product of US$ 407.7 billion and an annual growth rate of 2.1%. Brazil has the largest telecommunications sector in the region. In 2001, Brazil’s net revenue for telecommunications equipment and services was approximately US$ 31.5 billion. Services accounted for US$ 23.0 billion while telecommunications equipment and software suppliers generated the remaining US$ 8.5 billion.

In 1998, through twelve consecutive auctions, the Brazilian state-owned telecommunications system — TELEBRAS — was privatized. This included the sale of three holdings for fixed-line telephone systems, one long-distance carrier, and eight cellular telephone companies. The government’s proceeds from the sale were a total of US$ 8.8 billion, a premium of 63% over the minimum price set for the auction. Privatization of the telecommunications sector has brought Brazil unprecedented investments of approximately US$ 27.9 billion since the process began. Industry analysts predict an injection of an additional US$ 5.5 billion in 2003, mainly from carriers committed to introducing GSM se rvices in the country. The Brazilian communications regulator — ANATEL — predicts that total telecommunications investment in Brazil will reach US$ 64 billion by 2005.

Brazil joined the World Trade Organization (WTO) in 1995 but ha s yet to sign the WTO’s Information Technology Agreement that reduces tariffs on information and communications products to zero. The average import duty for te lecommunications equipment is 15% to 17%. There are no unbundling requirements for incumbent telecommunications s e rvic e providers in Brazil and telephone number portability does not exist.

Internet: <http://www.osec.doc.gov/obl/brazilmission2003/ Industry%20Telecommunications.htm> (with adaptations).