Updated MCS Regulation
Proposed MCS Quality Management Regulation
Comment
On August 10 2011 Brazil's telecommunications regulator (ANATEL) submitted for public consultation its proposals for an update to the Multimedia Communication Service (MCS) Regulation and a new MCS Quality Management Regulation.
Public Consultation 45 proposes alterations to the MCS Regulation and the Regulation for the Collection of the Public Price for the Telecommunications Service Exploitation Right and for the Satellite Exploitation Right.
The main proposed changes include the creation of state and local licences, to encourage the entry of small companies into the sector. A state licence will cost Ps1,200 and a municipal licence will cost Ps400. The national licence (which costs Ps9,000) will continue to exist.
Another important change is the creation of MCS agents. Agents are non-licensed companies that may establish a partnership with a licensed company in order to exploit jointly a given business niche. The relationship with ANATEL is the responsibility of the company that holds the MCS licence.
The proposed MCS Regulation provides for network neutrality and suggests that providers will be unable to block or interfere in the speed of the data that passes through their networks, except in cases involving network security and stability.
Companies with more than 50,000 subscribers (ie, large companies) that are authorised to provide the MCS must preserve a recording of all calls to the service desk for 180 days, while those with fewer than 50,000 subscribers (ie, small companies) must preserve a record for 90 days. Users will have the right to access the recordings for up to 10 days. The service desk must operate 24 hours a day for large companies and for repairs only for small companies. In all other cases, opening hours are from 8:00am to 8:00pm.
According to the proposed regulation, MCS providers must preserve the access records for three years (although small companies must preserve such records for two years only).
Proposed MCS Quality Management Regulation
Public Consultation 46, which creates the MCS Quality Management Regulation, establishes minimum quality standards for the service, thereby promoting the progressive improvement of user experience in aspects related to the service and the performance of broadband connections. Quality goals will be required from providers with more than 50,000 subscribers.
Under ANATEL's proposal, operators must deliver at least 60% of the contracted speed during the first 12 months, in line with the quality goals. This percentage will increase gradually until it reaches the rate of 80% of the contracted speed.
Moreover, service providers must supply software that enables their customers to monitor broadband performance. In case of failure, repairs for 90% of all cases must be carried out within 24 hours.
The regulation also determines that the maximum occupancy rate of each network link must be 80% of its capacity. If the occupancy exceeds 90%, the operator will have 30 days in which to expand its capacity.
Public Consultations 45 and 46 will continue to be available for comments and input until September 8 2011.
For further information on this topic please contact Ricardo Barretto Ferreira Da Silva, Fabio Ferreira Kujawski or Thays Castaldi Gentil at BARRETTO FERREIRA KUJAWSKI E BRANCHER – Sociedade de Advogados by telephone (+55 11 3897 0300), fax (+55 11 3897 0330) or email ([email protected], [email protected] or [email protected]).