Outline of government-in-waiting?s probable telecoms policy emerges

Leaders of the Workers Party (PT) and telecoms experts in the party have been working hard on the telecoms policy to be adopted when President-Elect Luís Inácio Lula da Silva takes office in January. A well-informed source sums up as follows the position reached so far. (1) Incumbents will be obliged to negotiate new contracts in 2003, rather than simply rubber-stamping renewal for 20 years. (2) The formula for annual tariff adjustments will probably be changed. Currently adjustments are pegged to the IGP-M, a volatile index seen as not reflecting telcos? costs. (3) Telcos will be urged to use excess capacity to serve low-income households and in exchange will probably be allowed to cross-subsidize. (4) The PT is emphatically in favor of Anatel?s idea that users should be free to choose any local carrier, even if it?s from another coverage area. That means all LECs would have to work with each other for interconnection and termination. The Italian example of more intensive mobile handset use is also considered positive.

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