Slide sem ttulo

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TARIFF SYSTEM IN BRAZIL FOR FIXED SWITCHED
TELEPHONE SERVICE (FSTS)
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• Current tariff system
• Tariffs for end users
• Network usage tariffs
• New contracts
• Tariffs for end users
• Network usage tariffs

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TARIFFS CHARGED TO THE PUBLIC BY FSTS
CONCESSIONAIRES

• SERVICE PLANS
• SET CONDITIONS FOR PROVIDING FSTS (AMOUNTS, RULES
  AND CRITERIA FOR APPLICATION)
• BASIC SERVICE PLAN
• ESTABLISHED BY ANATEL
• INCLUDES PRICE CAP
• ADJUSTMENT APPROVED BY ANATEL
• ALTERNATIVE SERVICE PLANS
• ESTABLISHED BY THE CONCESSIONAIRE
• ADJUSTMENT ACCORDING TO REGULATIONS

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• BASIC PLAN FOR CONCESSIONAIRES
• LOCAL
• CONNECTION AND MONTHLY SERVICE FEE
• USAGE
• PULSE (Ka 240)
• VARIATION BY TIME OF DAY/DAY OF THE WEEK
• LDN
• USAGE
• MINUTE/TENTH OF A MINUTE
• VARIATION BY LEVELS X TIME OF DAY/DAY OF THE WEEK
• LDI
• USAGE
• MINUTE/TENTH OF A MINUTE
• VARIATION BY LEVELS X TIME OF DAY/DAY OF THE WEEK

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SUMMARY OF PRODUCTIVITIES
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TARIFFS TO USE FSTS NETWORKS

• Tariff to Use the Local Network (TU-LN) the
  amount paid to a FSTS Provider, per time unit, to
  use the Local Network to make a call.
• Tariff to Use the Inter-City Network (TU-ICN)
  amount paid to a FSTS Provider, per time unit, to
  use its Inter-City Network to make a call.

PUB.
USER 1
USER 2
TU-LN
TU-LN
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SUMMARY OF PRODUCTIVITIES
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SCENARIO FOR EVOLUTION FSTS
Hoy
2005
2008
2011
New Contracts
Price Cap
Price Cap Retail Based
Costs
Evaluation of New Alternatives

• Underway, first interconnection cost estimate
• Comparison of tariff level

• Adjust interconnection tariffs to approximate
  cost levels
• New concept -- Separate Accounting
• Implement cost-based remuneration as of 2008

• In-depth knowledge of costs (regulatory body and
  operators)
• Implement the network cost-based remuneration
  model

• Consolidate the cost-based model
• Evaluate new remuneration alternatives
• Bill Keep (with tariff restructuring)
• Structural separation
• Others

Implementation
Define the level and working procedures among
operators, providers and ANATEL
Review and monitoring
Reconciliation/ refinement
Monitoring
Concludingthe model
Estimate costs based on accounting data
Road Map of Costs
Putting the model into practice
Gradual Evolution of Knowledge of Industry Cost
Dynamics
Plan cost consideration
Define the cost model to be used
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PROPOSED ADJUSTMENTS TO EXTEND CONCESSION
CONTRACTS, 2006-2025
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PRICE CAPTARIFF ITEM AND PERCENTAGE VARIATION

• MAINTAIN MONITORING OF END USER TARIFFS BY THE
  PRICE CAP
• MONTHLY FEE AND MINUTES FOR LOCAL SERVICE
• LEVELS X TIMES OF DAY FOR LDN
• GROUPS OF COUNTRIES X TIMES OF DAY FOR LDI
• STANDARDIZE VARIATION OF ITEMS AT 5
• EMPHASIZE
• FLEXIBILITY IN EVOLVING BASKETS OF FSTS

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INDEX OF INFLATION

• ADOPTING THE IST INDEX
• COMBINES OTHER TRADITIONAL INFLATION INDICES
• TO BE CONSTRUCTED AND MANAGED BY AN INDEPENDENT
  INSTITUTION.
• EMPHASIS
• REDUCES RISKS OF SECTORAL SLANT
• BETTER PERCEPTION OF CONCESSIONAIRE ACCOUNTS

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• PRELIMINARY ASSESSMENT OF CONCESSIONAIRE
  EXPENDITURE BREAKDOWN

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PRICE CAPPRODUCTIVITY

• ADOPTING A NEW METHODOLOGY TO SET PRODUCTIVITY
  FACTORS
• FOR 2006/2007
• SIMPLIFIED METHODOLOGY BASED ON PHYSICAL AND
  ECONOMIC DATA REGARDING PRODUCTS SUCH AS THE
  MONTHLY FEE (FOR LOCAL SERVICE) AND THE MINUTE OF
  USAGE), MATERIALS, PERSONNEL, SERVICES AND
  DEPRECIATION FACTORS
• AS OF 2008
• METHODOLOGY CONSIDERING OPTIMIZATION OF THE COSTS
  OF OFFERING THE SERVICE
• PRODUCTIVITY NEVER LOWER THAN ZERO.

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PRICE CAPPRODUCTIVITY

• ADOPTING A REDUCTION FACTOR FOR ATYPICAL
  INFLATION VARIATIONS
• 0 (ZERO) FOR IST VARIATIONS IN THE PERIOD
  CONSIDERED, UP TO 10 (TEN PERCENT)
• 0.01 (POINT ZERO ONE) FOR IST VARIATIONS IN THE
  PERIOD CONSIDERED, OVER 10 (TEN PERCENT) UP TO
  20 (TWENTY PERCENT) AND
• 0.02 (POINT ZERO TWO), FOR IST VARIATIONS IN THE
  PERIOD CONSIDERED, OVER 20 (TWENTY PERCENT).

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COST-BASED INTERCONNECTION TARIFFS

• 1st STAGE 2006-2007
• T.U.S. PROPORTIONAL TO END USER TARIFFS (RETAIL
  BASED)
• TURL M X USAGE TARIFFS (MIN./VCA)
• M0.5 (FOR 2006)
• M0.4 (FOR 2007)
• TUIU 0.3 X LEVEL 4 TARIFFS
• 2nd STAGE 2006-2007
• ADOPT T.U.S. CONSIDERING LONG-TERM COST MODEL

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THANK YOU!Marcos Bafuttobafutto_at_anatel.gov.br