Monopolization of Brazilian telecom sector leading to high prices

摘要

Monopolization of telecom services in Brazil had led to prices that are highly disproportionate to its citizens' income. A new research carried out by IPEA (Institute of Applied Economic Research) suggests that although the telecom infrastructure has improved vastly over the past 20 years or so, select companies have been able to enjoy monopolistic control over telecom prices and services over a period of time. Spain's Telefonica and Portuguese company Vivo currently own 29 percent of the market share, while Oi/Brasil Telecom own 27 percent. The IPEA said that lack of adequate competition is hurting service quality in the sector.