Telecom: The high rate of vaccination against covid-19 and the reopening of the economy, after periods of restrictions due to the pandemic, created a slightly better scenario for the end of 2021, compared to the same period in 2020. In the telecommunications sector, it is Of course, the year was also better: data collected by Conexis Brasil Digital show that R$ 25.5 billion were invested, in real values, from January to September this year, representing a growth of 4.8% compared to the same period of 2020.
In the third quarter of this year alone, R$8.4 billion were invested, representing an increase of 13.5% compared to the same period in 2020.
Most of these investments were applied to improving the mobile network, the quality of connections, acquisitions and installations of fiber optics. Today, the coverage of 4G technology has already reached 5,484 cities across the country — where 98.3% of the population resides. Thanks to the action of telecommunications and connectivity companies, whose objective is to implement the idea of an increasingly digitized economy, in a period of one year, 446 new municipalities were covered with 4G technology. The trend is for this scenario to be even more promising in 2022 if the investments that will be made as a result of the 5G auction are considered.
The challenges with 5G
On the other hand, one cannot turn a blind eye to the challenges ahead. The 5G notice itself foresees that it will reach the capitals by July 2022, although many still need to reduce their bureaucracies to guarantee the conditions that allow for its implementation.
However, it is considered that the main obstacle in the sector is still the tax framework that makes the expansion of connectivity so difficult, a concept that gained unprecedented strength with the onset of the pandemic. After all, the need to protect against the new coronavirus required everyone to be more and more connected.
Even with such importance, the tax issue is still an obstacle in Brazil — especially when compared to the international market: currently, the average rate of taxation in the telecom sector in countries that access the internet the most is 10%. In Brazil, on the other hand, the absence of projects for an efficient tax reform causes the tax on telecommunications to exceed 40%. Furthermore, there is a great imbalance between the federations, and the less favored states in terms of connectivity pay higher rates.