Government makes concessions on interconnect rates but defines unbundling

According to Congressman Walter Pinheiro (PT, Bahia), acting as spokesperson for the Government on this occasion, both sides gave ground in the negotiations between the Government and the incumbent local exchange carriers (ILECs).
The Government refused to make concessions with regard to user charges, insisting on the end of inflation indexation and on computing productivity in tariff reviews as of next year. The boot was on the other foot when it came to interconnect rates, with the ILECs insisting on remuneration for past capital expenditure and the pricing-in of different rates of return in different areas.
With regard to unbundling, the Government stipulated that the new telecommunications policy will establish rules on network rather than platform unbundling.

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