Tim, Claro and Vivo block internet for poor students – 05/04/2023 – Education

Telephone operators Claro, Tim and Vivo have disobeyed Anatel (National Telecommunications Agency) determinations and refuse to sell internet data lines to attend public connectivity programs for poor students and teachers on public networks.

The agency has already applied a daily fine of BRL 50,000 for this non-compliance and is considering taking the case to court and Cade (Administrative Council for Economic Defense).

The three companies refuse to provide the so-called electrical profiles (which carry data on chips) for connectivity programs in the states of Amazonas and Alagoas. This is an expected connection for 650,000 students.

These projects take place within the scope of a federal law that determined the transfer of R$ 3.5 billion to the states to guarantee internet access to 22 million poor students registered in CadÚnico (used in Bolsa Família) and public school teachers. The learning losses caused by the closure of schools in the pandemic motivated the creation of the law.

Alagoas and Amazonas held bids last year, which were won by Base Mobile. Contracts provide for access with filter —which only allows the use of the internet for educational purposes— and universal chips. In the model, it is possible to switch operators remotely based on the existence and quality of coverage in the students’ residence.

The companies are against these terms and refuse to sell connection lines at market price. In addition to Amazonas and Alagoas, the Base won public notices in Bahia, Goiás and a consortium of teaching networks in Santa Catarina. In the last three cases, the projects are still being implemented.

These bids, added together, provide internet access for 1.2 million elementary and high school students.

The operators questioned the bids and also went to court – so far, they have not managed to obtain any favorable decision. One of the main arguments is that Base Mobile would be reselling the connection.

In a note, the three companies stated that the company is not authorized to provide mobile internet.

Public notices talk about contracting software or platforms requiring access control only for educational content, which requires filters. The Civil Rights Framework for the Internet prohibits operators from filtering content.

Anatel, which regulates the sector, refuted the understanding of the operators and determined that they supply the lines until April 15, with a daily fine of R$ 50 thousand in case of non-compliance.

After a new administrative appeal by the three companies, the president of Anatel, Carlos Baigorri, upheld the previous decision, reaffirming the operators’ obligation to provide access. The dispatches, dated April 28, highlight the risks of impact on the “execution of relevant public policy”.

The documents obtained by Sheetpoint out that the beneficiaries are public school teachers and poor students and that the deadline for using the resources is short, since the budget needs to be used by the end of the year.

“Who is being harmed is Brazilian society,” he told Sheet the president of Anatel. “This is nothing new for Anatel, we are used to fighting the abuse of economic power. Let’s stretch the rope and institutionally enforce this public policy”.

The agency considers calling the AGU (Attorney General of the Union) to take the case to court and also to Cade.

Of course, Tim and Vivo control 98% of the national mobile telephony market.

The president of Base Mobile, Rivaldo Paiva, says he sees coordinated action by companies, in addition to economic abuse, and reaffirms that the public notices were in search of so-called VAS (Value Added Service) companies, not operators.

“Companies are telling Anatel that something that Anatel itself says is an obligation is illegal”, says Paiva. “What should be happening is a competition between them, but the companies that have concessions from the State refuse to supply. It’s like if I sell a car with a full tank of gas to my customer and all the fuel distribution companies refuse to sell me Gasoline.”

The Amazonas and Alagoas contracts are worth R$109 million and R$60 million, respectively. In addition to content filters and neutral chips, they require data usage control and management.

The law that allocated BRL 3.5 billion for student connectivity was approved by Congress in 2021 and vetoed by then-president Jair Bolsonaro (PL). The parliamentarians, however, overturned the veto and, at the end of last year, the resources were transferred to the states.

In a note, Claro reinforced the argument that Base Mobile acts to resell the mobile service, which would be illegal. He also questioned the fairness of the tenders in Amazonas — there is no final decision by the control bodies in that direction.

“The administrative process with Anatel is in progress, and we are convinced that, when the evidence is produced, the illegal and clandestine model will remain recognized”, says a note from Claro.

TIM stated, also in a note, that Base Mobile would not have “Anatel’s grant to offer the services demanded by the states” and that it awaits the Justice.

Vivo also says the cases would mean unlicensed resale. He also stated that this could represent control risks, an argument also made by Claro, but in both cases without details on what they would be.

“Vivo has confidence in the regulatory agency and believes that, with the debates and technical evidence in the discussion forums already in progress, it will be possible to clarify the issue”, says the note.

The education departments of Amazonas and Alagoas did not respond.