This article addresses the regulatory changes proposed for the telecommunications sector in Brazil regarding interconnection and unbundling policies. We summarize these policies after the privatization of Telebras, between 1998 and 2005, to be more able to evaluate the reform proposed for 2006, which we divide in nine main topics. They are 1) the adoption of the methodology of long run incremental cost - LRIC - as a parameter for tariff setting in interconnection, 2) the complementar use of a Fully Allocated Pricing mechanism for the sake of distributing common costs, 3) the abandonment, in practice, of the price cap regime, 4) the introduction of ties among interconnection and end user tariffs, 5) the replacement of the current tariff index (the IGP-DI) by the "Índice de Atualização de Tarifas" - Tariff Updating Index" (IST), 6) the new mechanic for the calculus of the discount factor "X", 7) the introduction of the "significative market power" concept, 8) the transition to a full Bill and Keep" system and 9) the effective use of "unbundling".
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Length: Date of creation: 2005 Date of revision: Handle: RePEc:anp:en2005:107
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Find related papers by JEL classification: L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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