What is the reason for not having a fixed internet franchise in Brazil

Operators again insist on having a fixed internet franchise in Brazil, and in several media the information they are charging Anatel again so that they can bring a solution to the case.

This, however, will not be a solution, neither here nor elsewhere. Operators claim that few users use a lot of bandwidth, and many use almost nothing. But what is behind this information, goes beyond what everyone really expects.

We will analyze critical and important facts, which culminate in the main reason why Brazil does not have a fixed internet franchise.

In Brazil, the Internet came with the advent of dial-up Internet, which, amazingly, still exists today in some remote regions of the country, but at the time, the person needed to have a telephone line, a computer with a fax modem, preferably from the US Robotics of 56 K, which was extremely expensive, over R $ 75.00 some used, and at the time that with R $ 1.00 I could buy 15 loaves of bread at the bakery, this was a lot of money.

In addition, you needed the provider, which charged another R $ 35.00 per month, as an example from AOL, UOL, and other smaller and regional ones, who couldn't even offer an email account, such as Netpar, etc.

Then came the advent of the Internet without a provider, with the launch of the website iG - Internet Free, where the user anywhere in the country, with access to a phone, could have e-mail, website (through HPG) and the automatic dialer iG, which automatically updated phone numbers for the region so you can spend less on calls.

We always live and live with a limited Internet and imposed on the natural and technological resources of the infrastructure, which has always been, and perhaps always will be, one of the biggest problems in Brazil.

Currently, it is obvious that the scenario has changed, at least, in the country's capitals, or better: São Paulo and Rio de Janeiro, and few capitals out there can also have the luxury of a quality Internet, even so, only in some places of the city.

Other places further away, or peripheral regions, or cities in Greater São Paulo, Greater Curitiba, suffer from poor quality infrastructure.

Until then, Brazil was accustomed to the maximum speed contracted, where the user can use the Internet for personal purposes, limited to a certain speed.

Now the Internet on cell phones, the scenario is different, completely different, because we always live and live with franchises, in detriment of speed, going back to the era of fax modem and providers.

Of course, at the time, there was no established franchise, but everyone knew about the costs of the pulses, and how to take advantage of using the Internet at dawn to access whatever they wanted.

On the cell phone, we see that as technology advances, we can have all the speed possible on the cell phone, just by changing devices, using a better technology.

There are still operators that insist on limiting speed, but they are giving themselves a shot at selling speed with a franchise.

As well?

Simple:

- You sell a franchise to someone so they can use 2 GB of Internet data on their cell phones. But the speed is so slow, that it does not manage to consume this franchise, simply because the technology used does not allow to consume the entire franchise, and, in addition, there is the operator on the other side limiting the Internet speed, being a second problem for the customer himself uses the contractor.

Did you understand the size of the problem that we may have in Brazil with franchise vs speed?

We may have an increasingly slower Internet, with smaller and smaller packages, and the excuse of operators to continue using the speed limit will be the same as always: preventing few users to consume 100% of the network.

However, there will be a conflict of interest, because if the user is paying the deductible, he will not be entitled to consume 100% of the network, provided he has the technology to do so?

So we run into another problem: The operator will release the 1 Gbps of optical fiber to the internet for all users, and whoever has computers with 1 Gbps will be able to consume all the franchise they want as soon as they need it?

For example, I need to do a job and I need to send it to the Internet. Will this be charged for the deductible? This seems a little unfair, since you are sending data to the network, like a job, YouTube video, among others.

Let's say that you have hired a 50 GB franchise to use in a certain job, and you still need to increase the speed of the hired Internet to be able to use your hired franchise.

Fixed Internet plans in Brazil are simply loyalty plans, which hold the user for a minimum of 1 year with payment of a fine if he wants to cancel.

The provision of services on demand, cannot be treated as a contract, simply because it can no longer be accepted in the current network rules.

The rules currently defined are aimed at ensuring that users use unlimitedly a specific speed restriction, and for franchises, speeds need to be revised so that there is no conflict of interest.

We saw that the operators in previous actions, wanted to maintain the speed of the customer and include usage franchises, however franchises cannot be applied for Internet plans of the same business model.

If you have a Claro cell phone, you know that you can get a good cell phone, up to 50 Mbps of Internet, as the operator does not limit the speed of the base station so that you can consume your entire franchise. If you spend your 2 GB or 5 GB in 1 minute, it's your problem, not hers.

Despite being bad for unsuspecting users, there is nothing wrong with this business model. If the person wants to limit the speed of the Internet, they can do this on their own router, and this should not be something that the operator imposes, if hired by franchise.

But Brazil does not have any infrastructure to change this business model, we do not have as much optical fiber as in the United States, where only the state of California has in revenue the GDP value of the whole of Brazil.

The business model for Internet by franchise, cannot be mixed in the same Internet business plan limited by speed, and it would be ridiculous for a person with a 512 Kbps Internet today, being limited to transferring 20 GB in the month.

Just to get a sense, in a datacenter, in the United States, you can have 1 Gbps links to connect servers, with a 5 TB data monthly allowance. If you use 5 TB in 5 days, you will pay more for it, obviously. But you have the option of having 100 Mbps without a deductible.

This business plan in Brazil is totally unfeasible, since NET itself wants to limit to a mere 20 GB of data traffic in the month.

This is just watching 4 chapters of your favorite Netflix series in HD today, meaning nothing.

What they are wanting to do is simply insert a rule to be able to profit much more, as the shares are falling in these companies, culminating in streaming services that gain strength every day more.

The Tutorial TI website does not agree with the franchise policy that companies want to adopt, replacing and overlapping the current scenario of commercialized products, usurping the consumer's right to be able to purchase other services using the network, such as Netflix, Spotify, to the detriment of an unprecedented view of profit from Internet service providers, which cannot offer a consumer franchise style network, where availability, speed, has to be delivered at much higher levels.