Restricted mobility and fixed‐mobile convergence in Brazil

Abstract

PurposeThis article aims to explore the impact of a particular regulatory framework for CDMA and GSM use by fixed‐phone companies in Brazil on access, local‐loop competition and fixed‐mobile convergence.Design/methodology/approachThe paper is based on the analysis of the three most significant cases in Brazil and the discussion of recent regulatory changes that facilitate access to radio spectrum on a secondary basis.FindingsAmong the findings of the study is that while fixed‐wireless access (FWA) systems using CDMA seem to be more suitable to high‐density, well‐served areas, in which a large operator attempts to address a low‐income market satisfied with restricted mobility – GSM systems deployed on a secondary basis are best fitted to address the digital gap in low‐income, underserved areas, promoting local‐loop competition in markets of little interest to traditional operators.Practical implicationsThe conclusion outlines regulatory recommendations for promoting competition and the growth of innovative, small‐scale operators that take advantage of new wireless technologies to address service coverage gaps.Originality/valueThe paper presents the first attempt to address the Brazilian CDMA‐ and GSM‐based fixed wireless access experience from a regulatory perspective and analyzes the “ruralfone” case, which uses a fixed phone license to deliver GSM‐based services in underserved communities, surpassing incumbent penetration in cities where there is no cellular network yet under a given regulatory environment in Brazil.