The impact of the privatization process on the Brazilian telecommunications industry

Abstract

This thesis analyzes the effect of the privatization process on the telecommunications sector in Brazil. Given the international characteristic of this industry, this work dedicated great emphasis in understanding what are the main current issues in the telecommunications industry worldwide. Furthermore, it is investigated how other countries approached this major event - privatization and deregulation - of this critical sector for every society. Models and insights were then drawn and adapted to understand the Brazilian specific situation. It is examined the sector's current situation and its future trends in the Brazilian market after almost three years since the assets were auctioned and transferred to private hands. It is also discussed the potential industry scenarios in each major telecom segment. The conclusion is that a consolidation process is inevitable in order to reach economies of scale and scope in the system and hence guarantee a satisfactory return on the investments to the main players in the market.