Digital equality depends on more antennas and less taxes

One of the most obvious legacies of the pandemic, which still affects countries in all corners of the world, was the accelerated process of adopting digital solutions. With travel restrictions, it was necessary for people and companies to quickly adapt to a new way of living and operating.

In this scenario, connectivity is inserted as an increasingly fundamental element for the proper functioning of the economy and even for human relations. However, millions of Brazilians are today far from this reality. According to TIC Domicílios 2020, there are over 12 million homes without internet access.

The survey also reveals that the Federal District, São Paulo and Rio de Janeiro lead the ranking of the most connected states, with almost 100% of households covered. At the other end, there are Piauí, Maranhão and Rondônia, with around 75%. Even considering mobile services, 14% of the population says they have never accessed the internet.

That is, there are thousands of people who suffer restrictions on access to information, remote work, education and all other advantages arising from connectivity. The internet is the fastest way to break through barriers to accessing knowledge.

One of the main obstacles for the expansion of digitalization refers to the difficulty of installing antennas. And without antennas, there will be no 5G.

Outdated municipal laws, in some cases up to 30 years, delay the implementation of infrastructure and impede coverage for millions of Brazilians. The arrival of 5G makes this issue even more sensitive, as the new technology demands an amount of antennas up to ten times greater than the previous generation. The latest generation antennas have tiny proportions and without them the “magic world” of 5G will be impossible.

There are good examples to follow. Porto Alegre, for example, has a modern law and the licensing of antennas comes out automatically, on the spot, without human interference. In other cities, it can take up to two years. The damage is obvious to everyone involved.

Another factor that hampers and is preponderant for digital inequality concerns the extremely high tax burden, which exceeds R$ 60 billion per year.

The reduction of sector-specific taxes creates a virtuous circle for economic development. It allows for greater investments by operators, currently in the order of R$ 32 billion annually, which immediately impact productive sectors and generate more revenue, benefiting sectors of society. The greater number of connections and the increase in the quality of services contribute to balance the social balance.

The GSMA’s Social Inclusion and Taxation of the Telecom Sector study (in free translation) showed the case of Croatia.

There was a 6% increase in taxes on the operators’ gross revenue and a consequent fall in the volume of mobile calls by 4%, impacting companies’ revenues and leading to a reduction in capital expenditures. After the removal of the tax, there was a 5% increase in capital and the resumption of the positive cycle.

One of the shortest paths to improve investment capacity and promote digital equality refers to the high value allocated to Fistel (Telecommunication Inspection Fund). Since 2001, more than R$65 billion in historical amounts have been collected, but less than 11% has been invested in the purpose.

With Condecine (Contribution to the Development of the Film Industry), the situation is also worrying. In the same period, more than R$9.5 billion were made available by the operators, but without adequate use.

It is in fact necessary to extinguish the payment of this tax in order to correct our tax jabuticabas and expand the reach of telecom services.

On the other hand, the 5G auction has great capacity to improve the situation. The notice, unlike the previous ones, provides for several coverage obligations. Among them are the Integrated and Sustainable Amazon Program, internet on federal highways and public schools, expansion of 4G in locations that do not yet have it. Less grants means more investment, increased connectivity, growth and less socio-digital inequality.