THE IMPACT OF TELECOM SECTOR PRIVATIZATION ON E- COMMERCE IN BRAZIL

Telecom infrastructure is often a barrier for developing countries aspiring to e-commerce development, as in the case of Brazil, where a poor original telecom infrastructure was an early barrier to e-business diffusion. However, between 1998 when the Brazilian telecom system was privatized, and the year 2000, telecom investments advanced an average of 1.36% GNP per year, a rate well above both Brazilian and Latin American historical levels. Thus, in record time the privatization of the Brazilian telecom system succeeded in revolutionizing the national communications industry, which in turn promoted national development of e-commerce.

The following questions have been addressed in this article:

How did Brazil’s telecom structure evolve?
In what ways have federal legislation and courts affected Brazilian telecom and e-commerce?
How has privatization of the telecom sector promoted e-commerce in Brazil?

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