Why Brazilian Internet rules MUST change!

For those who doesn't know I'm currently living in Brazil, and just read a message from Abranet that simply got me really pissed off.

The message, freely translated, is as follows:

Why Inernet rules must not change

Abranet - Internet Brazilian Association - publicly manifests its surprize and outrage with the information published at the press that the [Brazilian] government, through Ministério das Comunicações (Secretary of Communications), sent to Anatel (Bazilian FCC) requesting comments on substantial changes in the rules that governs brazilian Internet.

This changes, that would revoke the [Anatel's] Norm #4 from 1995, will greatly affect the Internet market, because it will eliminate the possibility of Internet Service/Content Providers to claim from telecommunication operators the same treatment in relation to the operator's own ISPs.

The current regulation was and is fundamental to mantain the growth of brazilian Internet, because it allows competitivity, low prices, variety and quality in content providing witin national territory. Also, the proposed changes suggests a substantial increat in taxes, by treating Internet as a simple telecommunication service and, therefore, subject to the charge of ICMS [brazilian tax on merchandize and services]. In pratice, it puts in risk the survival and the future of a relevant sector to the country.

Abranet, that was and always will be at disposal of the [Brazilian] government and the society to discuss the subject open, transparent and democratically, refutes any kind of atitude that disdains the good sense and does not listen all the important playes in the sector. Abranet trusts that the discussion, essential in a democratic society, still will be done, and by legally represent the sector, understands that it can give fundamental contributions to the interest of millions of Unternet users in Brazil.

This message, posted in all major newspaper in Brazil today, gave me a stomachache.

First of all, Brazil has one of the most expensive, monopolistic, and slow Internet connection in the free world.

Second, the proposed changes that the message talks about is that, if approved, the Internet Service Providers in Brazil will be forced to deliver a minimum quality and speed of the Internet connection they serve to their clients. Currently, there is no minimum set of quality that the ISPs must adhere to, although there is a common understanding among them that they need to deliver at least 10% of the agreed connection speed.

Yes, you read it right. Nowadays, when you hire an ISP to provide you with, say a 1Mbps Internet connection, the ISP need to deliver only 100Kbps to be on the up and up with their agreement, not much better than a 56Kbs dial-up connection.

Again, yes, you read it right. In Brazil the ISPs thinks that a 1Mbps connection is speed IS a broadband connection. Some providers even say that a broadband connection can have a speed as low as 256Kbsp.

So let me present you with a small comparison on ISP across the world and you'll see that Brazil has one of the most expensive Internet connection.

To ensure fairness the tables below were compiled with the fastest connection rate I could find on each of the providers below, in a reasonable amount of time, by no means this is an extensive research of Internet prices. The tables are sorted by the average price per Mbps.

The prices below compiled some of the Brazilian ISPs that offer Inetenet connection in major cities, their prices were converted to dollars by the exchange rate of Aug, 5th, 2011.

Speed	Provider	Price/Month	Price/Mbps
100Mbps	TVA	145.13	1.45
100Mbps	NET	252.46	2.53
100Mbps	GVT	315.59	3.16
20Mbps	Oi	82.00	4.10
8Mpbs	Telefonica	56.75	7.09

As a comparison, below there are a few of the prices of the Internet Service Provider prices among the world. All prices were converted to dollars by the exchange rate of Aug, 5th, 2011.

Speed	Provider	Location	Price/Month	Price/Mbps
200Mpbs	NTT	Japan	69.57	0.34
40Mpbs	BT	UK	45.90	1.15
150Mpbs	Verizon	USA	194.99	1.30
25Mpbs	Bell	Canada	64.18	2.56