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Brazil could spend $10.7bn to create state Internet company

01 февраля 2010

Dissatisfied with private companies ability to provide Internet service throughout Brazil, the government could create a massive state-owned company to provide broadband service.

A study by the government proposed creation of a state-owned company, called InfoBrasil, at a cost of 20 billion Brazilian reals ($10.7 billion), local news agency Estado reported late Thursday. Estado said it had reviewed a copy of the study, requested by President Luiz Inacio Lula da Silva last year.

InfoBrasil's mission would be to provide broadband Internet service throughout Latin America's largest country, including impoverished remote rural and jungle regions.

Private companies such as Oi and Spain's Telefonica SA provide service to urban centers such as Rio de Janeiro and Sao Paulo. But the companies have declined to undertake the massive investments needed to service more remote areas.

The study will be presented to Lula on Feb. 10, Estado said.

Источник: Total Telecom

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