How to make connectivity reach the low-income population in Brazil?

In today’s digital world, people and companies have learned to live with technology, which continues to permanently transform relationships and businesses.

It is no longer possible to think about giving up the social benefits it generates, from productivity –through the use of all kinds of applications– to the efficiency gains experienced by productive sectors.

This reality means that access to connectivity urgently needs to be treated as a priority in Brazil. Countries that started ahead have several public policies to ensure that their citizens enjoy digital services and prevent their restriction from generating more inequality. In this sense, it is worth understanding what these initiatives are and how they contribute to addressing the problem.

The UN establishes a benchmark to measure the accessibility of the population. According to the organization, 1 GB of data should cost less than 2% of gross national income per capita. Brazil meets the target when the entire population is evaluated. However, when segmenting by income groups, there is a clear barrier.

The average consumption package costs 6% of the average monthly income of people who are among the 40% of the population with the lowest salaries in the country. Even more serious, it reaches almost 10% of the average income for the portion of the poorest 20%. This reality occurs even with the average price of the service having dropped 80% in the last ten years, which shows that we are a country with medium/low per capita income.

The cost of connectivity in Brazil is low. Considering the 15 countries that most access broadband in the world, the price practiced here is 55% lower than the average. The problem lies in the population’s very unsatisfactory income and tools are needed to overcome this issue.

The United States went further and created Lifeline, a program to provide access to communication services for low-income consumers. They subsidize monthly discounts of US$9.25 (R$52.68) for the less affluent group, equivalent to 25% of the average ticket of the American citizen.

Rebate helps ensure access to work, health services and education for those who need it most. In July 2021, more than 33 million households were eligible for the election.

Brazil has conditions for a similar program, but, for now, only in theory. The Fund for Universalization of Telecommunications Services (Fust) was created more than 20 years ago, but has never been used for this purpose. The 2020 legislative change, called the “New Fust”, has the potential to change this scenario.

It aims to allow resources to be earmarked for investments focused on connectivity, programs and plans to expand access to telecommunications services, including broadband.

As a comparison, the amount collected so far by Fust in real terms —which has never been used— could subsidize, under the same conditions as Lifeline, the eligible population of Auxílio Brasil for almost 60 years! There is still time to correct this serious state failure.

The connectivity subsidy for Auxílio Brasil would cost approximately R$800 million per year, compared to an average annual collection of R$1 billion. To avoid the cost of bureaucracy, the operators themselves could carry out the transaction, as permitted by the “Novo Fust”. It would guarantee more agility, more connectivity and less social inequalities.

There has been a lot of progress in telecom legislation over the past two years. Every advance must certainly be celebrated. But the awareness that Brazil needs deep and structural resolutions cannot dampen the impetus for urgent changes, especially to serve the most vulnerable.