Brazilian telcos to push back on network fee ban
As Brazil weighs new digital infrastructure reforms, a quiet regulatory shift could redefine who controls — and who pays for — the backbone of the country’s internet.
Brazilian telecom operators strongly oppose a bill that would ban charging network fees to big tech companies, arguing that these companies consume most of the network traffic, about 80% of mobile and 55% of fixed usage. The telcos propose a compromise where big techs either pay for usage above a set threshold or contribute a portion of their revenues to help fund network infrastructure expansion.
While internet companies claim they already invest heavily in infrastructure such as submarine cables and content delivery networks, telcos view the bill as unconstitutional economic intervention but prefer to reach a negotiated agreement rather than pursue legal battles. In addition, telcos are advocating for the renewal of existing tax exemptions on Internet of Things (IoT) devices and connectivity fees, which are set to expire in 2025.
These exemptions have supported significant growth in IoT applications across sectors like banking and agribusiness, with non-human connections such as sensors and payment machines now driving mobile network growth more than traditional phone lines. Although the federal government aims to reduce broad tax breaks, Congress’s outlook favours maintaining these IoT incentives to sustain connectivity expansion.
Discussions are also underway about expanding the regulatory scope of Brazil’s telecom watchdog, Anatel, to cover additional digital infrastructure elements such as DNS services, internet exchange points, content delivery networks, and cloud platforms. That potential expansion would require amendments to Brazil’s internet civil rights and telecommunications frameworks, reflecting evolving priorities in managing the country’s digital infrastructure and services.
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