Fixed line telcos make a fuss over Fust

12 Jan 2006

A group of nine Brazilian fixed line operators, including Brasil Telecom, Telemar, Embratel, Telefónica Brazil and Intelig, have filed an injunction with the federal courts to put on hold further payments into the country’s universal service fund, Fust. According to BNamericas, the filing calls into question the ‘constitutional status of continuing contributions’ to the fund, which was set up to fund the provision of universal access to telecoms services. However, Jos Fernandes Pauletti, the president of Abrafix which is coordinating the action, claims the resources have not been put to use. The telcos argue that they should be relieved of their obligations to Fust until its management team have properly defined how to use and apply the existing funds. All Brazilian telcos are required to pay the equivalent of 1% of their monthly revenues into the fund.