Telecommunications

Telecommunications

Call Center of regulatory agenCies

Regulatory agencies usually have means for users of regulated services to express their opinion or complain

about services. There is no federal law that establishes criteria and parameters of interaction between the agencies

and the users of the regulated services. Nevertheless, it is expected that these entities offer a call center system

capable of functioning as an appealing source, when the user do not have his claim solved by the company provi-

ding the service.

Some regulatory agencies provide call centers for users of the regulated services. TCU held, at the request of

the National Congress, a performance audit on the administrative sectors of these agencies to verify effectiveness,

and efficiency. The audit used, as reference, the parameters established by Decree nº 6523/2008, which regulates

call center services in the concessionaires and permissionaires that provide the services. Regulatory agencies are

not ruled by Decree nº 6523/2008

The call centers of the following regulatory agencies were audited: the National Telecommunications Agency

(Anatel), the National Civil Aviation Agency (Anac), the National Land Transport Agency (ANTT), the National Water

Transport Agency (Antaq), the National Electric Energy Agency (Aneel), the National Petroleum, Natural Gas and

Biofuel Agency (ANP) and the National Supplementary Health Agency (ANS).

Main findings

Call centers of different agencies are structured in different ways. Anatel, ANTT, Aneel, ANP and ANS have a well

structured call center service, functioning as an appealing instance. By the time of the auditing, the call center in

Anac had not been completely implemented and Antaq had no call center.

It was concluded that the call center services provided by ANTT, Aneel and ANP were effective. On the other

hand, the services provided by the Anatel, ANS, Anac and Antaq needed improvement.

Call centers in Anatel and ANS had not enough employees. The agencies did not perform regular researches

about user satisfaction and did not provide access for people with hearing or speech disabilities.

Telecommunications

Brazilian Court of Audit • www.tcu.gov.br • 2nd Secretariat for Oversight of Privatization and Regulation • Sefid2@tcu.gov.br • Phone: +55-61-33165945 • Fax:+55-61-3316-7545

For further information, visit www.tcu.gov.br/controleregulacao

The call center in Anac was being implemented. It did not offer access for people with hearing or speech disabi-

lities and the first electronic menu did not have an option for direct contact with the operator. The user relationship

management did not interact with other areas in the Agency and there were no indicators for analysis of timing and

quality of the answers. There were not indicators our surveys on user satisfaction.

Antaq had a toll-free service with a poor structure, no standard processes and no employees training. It did not

provide access for people with hearing or speech disabilities, and customers could not track their requests in the

Agency website. The ombudsman system did not provide listing of previous requests for the call center agent or for

the user. Calls were not recorded and there were no established deadlines for requests solution.

TCU Deliberations

TCU recommended that all Regulatory Agencies meet the requirements of Decree nº 6523/2008 in user rela-

tionship management.

To Anatel, Anac, ANTT Antaq and ANS, TCU recommended the use of indicators for measuring user satisfaction

about the user relationship service, especially call centers, in order to obtain data for service improvement.

TCU recommended that Anac uses, in inspection and regulation, the information obtained from complaints and

from responses to users.

Due to the need of standard call center service and official Ombudsman information data, TCU recommended

to Antaq that:

• call center service should be officially implemented;

• complaints should be recorded and listed in the same system used to provide the service; and

• answer timing should be diminished.

It was recommended that ANS implement necessary measures to reduce the rate of disregarded calls as well as

to reduce waiting time in the electronic service.

Judgment TCU No 2.799/2010-Plenary session - 10/20/2010 Rapporteur: Minister José Jorge

Telecommunications

QUALITY OF TELEPHONE SERVICE PROVISION

In 2006 the Brazilian Court of Audit (TCU) conducted an audit to evaluate the performance of the National

Telecommunications Agency (Anatel) in monitoring and assuring quality in the provision of telephone services.

The work was proposed based on the observation that, although privatization of telecommunications in Brazil

has allowed significant growth in the number of accesses to telephone services, the quality of these services has

been subject of complaints to Anatel by users, representative organizations, consumer protection agencies and by

other organizations that protect user’s rights.

Main findings

TCU found that fundamental aspects of quality are not properly addressed by the Regulatory Agency. There

are gaps in quality regulations, weaknesses in the monitoring procedures developed by the agency and lack of

effectiveness of the sanctions imposed on service providers.

The audit revealed that regulation was outdated regarding quality from the perspective of the user, especially in

solving bill-related problems and customer service.

The regulating process of Anatel does not adequately consider the demands of society for improvement in

services. In addition, the audit found a very low rate of user participation in the regulatory processes.

TCU pointed out limitations in the current quality monitoring strategy and failures in the oversight process

conducted by the agency. There was a delayed reaction by the agency in implementing oversight actions on issues

highly demanded by users of telephone services.

TCU found that enforcement actions against violations committed by service providers do not have the necessary

effectiveness to ensure compliance with quality requirements established by regulation. The low values and the

delay of penalties seem to explain the inertia of the operators in solving problems and hence the high number of

complaints from users of telephone services.

In addition, TCU found that user education policy is not considered priority and that the regulatory agency does

not aim on the provision of quality from an user perspective.

Telecommunications

Brazilian Court of Audit • www.tcu.gov.br • 2nd Secretariat for Oversight of Privatization and Regulation • Sefid2@tcu.gov.br • Phone: +55-61-33165945 • Fax:+55-61-3316-7545

For further information, visit www.tcu.gov.br/controleregulacao

TCU Deliberations

TCU determined that Anatel:

• submits a proposal to revise the rules on quality of telecommunications services, in order to adapt them to

standards compatible with the requirements of users;

• develops a reviewing plan of surveillance of quality and a plan to reformulate the sanction procedures,

detailing the solutions and implementation schedule of actions;

• formulates and present to the TCU guidelines to promote a policy of information and education of

telecommunications users.

In order to contribute to the improvement of the regulatory process, TCU recommended that Anatel adopts

measures to:

• monitor on a real-time basis the complaints registered in the call centers of the operators and obtain timely

information on user complaints management;

• restrain delay in call centers.

TCU also recommended that the Ministry of Communications, together with Anatel, conduct an analysis on the

resources required for the proper functioning of the regulatory agency when monitoring and ensuring the quality of

telecommunications services. This analysis would avoid budget cuts that would compromise essential regulatory

activities to the proper functioning of the sector.

Judgment TCU No 2.109/2006-Plenary session - 11/14/2006 Rapporteur: Minister Ubiratan Aguiar

Telecommunications

NoN-ioNiziNg radiatioN from aNteNNas aNd

telecommuNicatioNs equipmeNt

The growing number of mobile phone, radio and TV stations increases the concern about the effect of exposure

to non-ionizing radiation (NIR) on the health of the population. The possible consequences of such exposure have

been studied by several countries and international organizations, but there are no conclusive findings yet that can

be used to reassure the population or, on the other hand, indicating a relationship between health hazards and

exposure to NIR.

As a precautionary approach, the World Health Organization (WHO) and various countries adopt limits for

exposure to such radiation. In Brazil, such limits are established by Anatel Resolution nº 303/2002, which replicates

the WHO recommendations and is in line with Law nº 11 934/2009.

In response to a request from the Chamber of Deputies, the Brazilian Court of Audit (TCU) assessed the

performance of the National Telecommunications Agency (Anatel) and of the Ministry of Communications to

ensure that telecommunications service providers and broadcasters observe the limits imposed of exposure of the

population to NIR.

During the work, the TCU evaluated the processes for inspection, licensing, certification and approval of

equipment emitting NIR, as well as sanctions imposed by the Anatel and by the Ministry of Communications with

respect to compliance with the Resolution by those responsible for the stations.

Main findings

TCU’s work demonstrated the need for Anatel to improve its inspections, especially with regard to the

standardization of the actions of its agents. It also noted that Anatel has no information that can ensure that the

stations licensed before July 2002 observe the limits imposed by Resolution nº 303/2002.

With regard to the licensing of stations, TCU noticed a strong dependence of the Agency and the Ministry of

Communications in relation to the merely declaratory data, submitted by providers of telecommunications and

Telecommunications

Brazilian Court of Audit • www.tcu.gov.br • 2nd Secretariat for Oversight of Privatization and Regulation • Sefid2@tcu.gov.br • Phone: +55-61-33165945 • Fax:+55-61-3316-7545

For further information, visit www.tcu.gov.br/controleregulacao

broadcasting services. In addition, it noted that lack of timely action by the Ministry in the process of licensing

makes it difficult to verify compliance with the limits imposed by regulation.

When analyzing the equipment certification processes, TCU found that the action of Anatel reduces the risk of

emission of NIR – by cell phones and other portable devices - to overcome the limits established. In addition, the

audit found that some actions aiming at improving the certification process, such as the implementation of the

evaluation mechanism of certified products already being marketed, were already being implemented.

When assessing whether the process of applying sanctions can deter non-compliance with the limits for exposure

to NIR, the TCU team found that there are gaps in the Anatel regarding the standardization of criteria for setting

fines, a problem that had already been pointed out in previous audits.

Based on Law nº 11 934/2009, which deals more broadly with the issue of human exposure to electromagnetic

fields, TCU found that Anatel will need to adapt the processes of inspection and sanctions, as well as the way

information is provided to society, in order to comply with the new legislation. In addition to these findings, there is the

need for improvement, by Anatel, with support from the Ministry of Communications, of the actions of communication

and dialogue with users, with other government agencies and the providers of telecommunications and broadcasting

services, in order to provide greater effectiveness in disseminating information about NIR to society.

Tcu Deliberations

Determinations to Anatel:

• Require from those in charge the declarations of conformity of all stations that were licensed before July 2002,

the date of publication of Resolution nº 303/2002;

• Prove compliance with new requirements established by Law nº 11 934/2009, such as the implementation of

a monitoring system of electromagnetic fields in real time and the system for registration of stations;

• Formulate new procedures for measuring non-ionizing radiation levels at the stations.

Determinations to Anatel and the Ministry of Communications:

• Implement a daily fine applicable to providers of telecommunications and broadcasting services that go

beyond the limits imposed by regulation.

Recommendations to Anatel and the Ministry of Communications:

• Improve the monitoring procedures, equipment certification, penalties, licensing, reporting and dialogue

with society.

Judgment TCU No 2.658/2009-Plenary session - 11/11/2009 Rapporteur: Raimundo Carreiro

Telecommunications

TELECOMMUNICATIONS SECTOR

The Brazilian Court of Audit (TCU) oversees the management and performance of the National Telecommunications

Agency (Anatel), in order to verify legality, efficiency, effectiveness and economy.

The evaluation of Anatel’s performance is carried out through performance audits, which aim to contribute to the

improvement of the regulatory process. Among the work undertaken by TCU, other audits are:

• The measurement of economic-financial balance of fixed telephony providers and procedures for tariff review;

• Universalization of access to fixed telephony services;

• The application of resources from the Fund for Universalization of Telecommunications Services (FUST);

• The quality in the provision of telecommunications services;

• Oversight of compliance with the limits of public exposure to Non-Ionizing Radiation produced by terminals

and antennas by the telecommunications services providers.

TCU also monitors concessions and compliance with contracts of telecommunications and broadcasting

services, as per Internal Rule nº 27/1998, which includes public bids for radiofrequency spectrum and right of

exploitation of orbital position.

The telecommunications sector

The telecommunications sector comprehends the provision of services such as fixed telephony, mobile

telephony, multimedia communication and paid TV, among others. Table 1 indicates the number of accesses

installed by type of service by the end of 2010 in order to demonstrate the relevance and impact of the sector in

the Brazilian economy.

Table 1: Number of accesses of TelecommuNicaTioNs services by The eNd of 2010, iN millioNs

fixed telephony mobile telephonymultimedia

communicationPaid Tv

42.1 202.9 15.5 9.8

Source: Annual Report 2010 – Anatel

The gross operating revenue of the telecommunications sector reached R$184.9 billion in 2010, representing

5% of the GDP. Of this total, R$ 76.4 billion refer to fixed telephony, R$ 73.6 billion to mobile telephony and R$ 12

billion to paid TV.

The sector is characterized by a high pace of technological evolution, demonstrated by the recent advance in

the use of mobile telephone systems and internet access wireless broadband and has required the increasingly

intensive use of radio spectrum. This reality is reflected in the bids for frequencies to provide 3G mobile telephony

that took place in 2007 and 2010, from which the Government collected R$6.5 billion.

Similarly, the use of information and communication technologies (ICTs) has gained increasing importance in

the implementation of important social public policies such as fighting poverty and social exclusion, disseminating

new tools for education, providing government services electronically (e-government), assisting the disabled and

working on their social inclusion and providing infrastructure to support government actions in the fields of health,

public safety, labor and employment, agriculture and tourism, among others.

Brazilian Court of Audit • www.tcu.gov.br • 2nd Secretariat for Oversight of Privatization and Regulation • Sefid2@tcu.gov.br • Phone: +55-61-33165945 • Fax:+55-61-3316-7545

For further information, visit www.tcu.gov.br/controleregulacao

Telecommunications

In this context, the Brazilian government established, in 2010, the National Broadband Plan, which defined

actions to be taken by different government agencies in order to promote and disseminate the use of ICTs, and to

make possible the access to broadband internet by the whole Brazilian population.

legal framework and institutions

The delegation of the provision of telecommunications services to private entities in Brazil was possible after

the government’s decision to establish competition in the sector. This was done by eliminating state enterprises

singularity in providing the services and by issuing Constitutional Amendment 8/1995.

In 1997, Law nº 9472, known as the General Telecommunications Law, was published. It established the principles

of the new telephone sector institutional model, created the National Telecommunications Agency (Anatel), the new

arrangements for the provision of telecommunications services, and the guidelines for modeling and sale of state

companies from the Telebras System.

As the telecommunications regulator, Anatel has the mandate to implement the national telecommunications

policy set by the Federal Government, to discipline, grant and inspect the execution of telecommunications services,

and to manage the use of the scarce resources of satellite orbit and spectrum radiofrequencies.

Thus, among other things, Anatel is responsible for:

• economic and financial regulation, which aims to ensure that prices of services under concession in an

environment of low competition are maintained at reasonable levels, with incentives for efficiency and without

creating disincentives to investment;

• the regulation of quality, to ensure that telecommunications service providers comply with conditions of

regularity, efficiency, safety, timeliness, generality, courtesy and reasonable rates;

• the universalization of telecommunications services provided under the public system, which aims at

democratizing access to telephone services across the country.

According to the legal system, telecommunication services are classified as public and private. The services

provided under the public system have obligations of universalization and continuity, which is not the case in

the private system. Currently, the only service in the public system is fixed telephony, and it is provided by the

concessionaires originated from the privatization of Telebras System.