Opinion: Deciphering digital inequality in Brazil

Brazil is the country of inequalities and this is not exactly new. Despite the improvement seen in recent years, the concentration of income still remains at very high levels.

The difficulty in achieving greater equity in the distribution of resources is gaining rapidly on the increasingly influential company from another element capable of generating an imbalance in the social balance. It’s about digital inequality.

According to TIC Households carried out in 2020, 26 million people have never accessed the internet in the country, equivalent to 14% of the population. The reasons are diverse. One of them is that 18% say they do not have the purchasing power to hire the service. The explanation is easily understandable, as 81% of those who do not access the internet receive up to two minimum wages per month.

Another number that draws attention is the 63% who do not have internet due to lack of interest, skill or need. Here, another perverse facet of illiteracy and lack of access to education can be seen, which are both historical and contemporary barriers to human and economic development.

When evaluating the data, it is clear that the biggest reason for disconnection is on the demand side — with low education and financial capacity — and not necessarily the supply side, linked to the lack of infrastructure or service, which currently reaches 90% of households from the country.

The Brazilian telecom market is one of the most competitive in the world. Market growth and intense competition make companies do their best to offer the best prices to their consumers.

The IPCA accumulated in the last 12 months was 10.3%, according to the IBGE. The combo of telephony, internet and pay TV services increased by less than 1%. Sanitation services rose 4.4%; residential electricity, almost 30%.

Data from the International Telecommunications Union (ITU) show an effective drop in the cost of services in the sector in Brazil. The basket of mobile telephony services cost close to US$70 (R$394) in 2008 and observed a gradual decline to reach almost US$22 in 2018. Fixed broadband dropped from just over US$53 (R$299). ) for less than US$18 (R$101). Considering the 15 countries that most access broadband in the world, the price charged here is 55% lower than the average.

One of the main factors limiting access to connectivity is the extremely high tax burden, representing more than 40% of what is paid by the final consumer. It ranks second in the world, with only Jordan leading the way, according to data from the World Bank. The load of leading countries in connectivity is around 10%. Our charge increases the rule for internet access.

Brazil has a population with average per capita income and there must be public policies that favor digital inclusion. Historically, more than R$ 116 billion have been collected by operators for sectorial funds. For Fust alone, created precisely to promote the universalization of connectivity, there were almost R$ 45 billion in the last 20 years, but not a penny has been invested until today for this purpose. Very high contribution made by the sector and taxpayer, but which did not have the correct destination. There is a state failure to correct.

Without structural changes, the biggest losers will continue to be the less favored people and Brazilian companies, which lose competitiveness in an increasingly competitive market.