Telebrás
Encyclopedia
Telebrás was the Brazil
ian state-owned monopoly telephone system. It was broken up in July 1998 into twelve separate companies, nicknamed the 'Baby Bras' companies, that were auctioned to private bidders. The new companies were the long distance operator Embratel
, three fixed line regional telephony companies and eight cellular companies.
Attempts at privatization began during Fernando Collor de Mello
's administration in 1990, as part of an economic reform dubbed National Privatization Program , within the Plano Collor
, which was conducted by then-finance minister Zélia Cardoso de Mello
The privatization was carried out some 8 years later during the administration of Fernando Henrique Cardoso
, on July 29, 1998.
According to Carlos Henrique Moreira (president of Embratel
), in the eight years after the privatization, from 1998 to 2006, the fixed and mobile telephone subscriber base increased by 27.4 million to 139 million, at an annual rate of 20%, generating an annual increase of income of 18%, from R$ 31 billion to R$ 121 billion). The government's tax revenue grew from R$ 9.3 billion to R$ 33.1 billion at an annual growth rate of 17%. The telecommunication services' penetration grew from 24% to 72%, or 17% annually. The number of direct jobs for the "Baby Brás" companies increased from 180,000 to 305,000, an annual increase of 7%.."
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian state-owned monopoly telephone system. It was broken up in July 1998 into twelve separate companies, nicknamed the 'Baby Bras' companies, that were auctioned to private bidders. The new companies were the long distance operator Embratel
Embratel
Embratel - Empresa Brasileira de Telecomunicações S.A. is a second major Brazilian telecommunications company headquartered in Rio de Janeiro. The company was the long distance arm of Telebras until it was bought by the U.S. company MCI Communications for 2.65 billion reais during the 1998...
, three fixed line regional telephony companies and eight cellular companies.
Attempts at privatization began during Fernando Collor de Mello
Fernando Collor de Mello
Fernando Affonso Collor de Mello was the 32nd president of Brazil from 1990 to 1992, when he resigned in a failed attempt to stop his trial of impeachment by the Brazilian Senate...
's administration in 1990, as part of an economic reform dubbed National Privatization Program , within the Plano Collor
Plano Collor
The Collor Plan , is the name given to a collection of economic reforms and inflation-stabilization plans carried out during the presidency of Fernando Collor de Mello of Brazil, between 1990 and 1992...
, which was conducted by then-finance minister Zélia Cardoso de Mello
Zélia Cardoso de Mello
Zélia Maria Cardoso de Mello served as Brazil's Minister of Economy from 1990 to 1991 under Fernando Collor de Mello . She was married to Brazilian comedian Chico Anysio, with whom she has two children, Rodrigo and Victoria...
The privatization was carried out some 8 years later during the administration of Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...
, on July 29, 1998.
According to Carlos Henrique Moreira (president of Embratel
Embratel
Embratel - Empresa Brasileira de Telecomunicações S.A. is a second major Brazilian telecommunications company headquartered in Rio de Janeiro. The company was the long distance arm of Telebras until it was bought by the U.S. company MCI Communications for 2.65 billion reais during the 1998...
), in the eight years after the privatization, from 1998 to 2006, the fixed and mobile telephone subscriber base increased by 27.4 million to 139 million, at an annual rate of 20%, generating an annual increase of income of 18%, from R$ 31 billion to R$ 121 billion). The government's tax revenue grew from R$ 9.3 billion to R$ 33.1 billion at an annual growth rate of 17%. The telecommunication services' penetration grew from 24% to 72%, or 17% annually. The number of direct jobs for the "Baby Brás" companies increased from 180,000 to 305,000, an annual increase of 7%.."