Regulatory environment

GRI 419-1

On the regulatory side, 2020 was marked by discussion and actions taken for important issues. In the context of the Covid-19 pandemic, under the leadership of the Ministry of Communications and Anatel, Brazil’s telecommunications companies took measures to ensure that networks remained fully functional to absorb society’s significant growth in demand for connected services. These companies therefore signed the ‘Public Commitment to Keep Brazil Connected’.

Also worth mentioning were the debates held by Anatel through public hearings on issues related to Law 13.879, which introduced a new telecommunications model for Brazil in which operators may migrate from the landline-telephony concession model to one based on authorization, thus investing in high-speed broadband networks in areas where there is no competition. Rules governing conditions and formats have yet to be decided.

In December 2020, Algar Telecom signed a consent decree with Anatel which stipulates deploying 4G technology in certain localities with populations of less than 30,000 inhabitants, which will expand coverage for this service and ensure faster data traffic for people in these regions. The new infrastructure will be deployed over the next 30 months.

A 5G technology auction is due to be held in 2021 and the related format and conditions are now being discussed.

At the end of 2020, there were no final decisions against Algar Telecom in judicial or administrative proceedings involving economic or social aspects for legal or regulatory breaches that could lead to material fines and/or non-monetary sanctions.