The announcement of the start of negotiations for a partnership between the government of Jair Bolsonaro and billionaire Elon Musk was seen by public and private agents in the telecommunications sector as a potential favor to the foreign billionaire. Without any bidding forecast, the agreement being drafted provides for the provision of a monitoring service for the Amazon and the provision of internet in public schools located in remote regions.
All this through Starlink, Musk’s satellite internet company. Starlink received authorization from the National Telecommunications Agency (Anatel) in January to operate 4,400 low-orbit satellites over Brazil.
The point is that there are other operators that provide the same type of service, such as Viasat, Hughes, Embratel, among others. The industry’s criticism is that all should be treated with equality.
The billionaire, however, was invited by the minister himself to visit the country. In an interview, Bolsonaro said that there is “complete interest” on the part of the Brazilian government in establishing a partnership. “It’s the beginning of a relationship that will end in marriage,” said the president. Bolsonaro, Musk and Communications Minister Fábio Faria were in a luxury hotel in the interior of São Paulo.
The nuptials, however, are not to be sealed so soon. The pact will have to go through a bidding process, but this is not allowed by the Fiscal Responsibility Law so close to the elections. Therefore, Bolsonaro would need to be re-elected to proceed with the negotiations, something for 2023 onwards.
Another criticism of the sector is that there was a violation of Anatel’s competences when Musk was chosen to provide internet to public schools. It is worth remembering that the regulatory agency created a specific group to deal with school connectivity. This program has resources paid, in the form of counterparts, by the telecoms that won the 5G auction held in November.
Asked by the report if there was any favoritism, absence of bidding and violation of Anatel’s functions, the Ministry of Communications only stated that “there was no formalization of contract during the visit of businessman Elon Musk to Brazil”.
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