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ISOC/ITS Webinar – How Cost-Sharing Policies Impact Competition and Consumers?

iscussions surrounding the implementation of a “cost-sharing” policy have direct ramifications on the realms of competition and consumption. In Varanda #132, we delved into how this proposal could potentially render the Internet more expensive, slower, and with reduced content.

Here are key insights from the presentations of each participant and expert:

Bruno Renzetti (Professor of the Graduate Program in Law at Insper, Associate at Hapner Kroetz Advogados):

“When we delve into the cost-sharing proposal, it appears to be a regulation that runs counter to the current landscape of competition in fiber internet and mobile Internet. It seems poised to diminish competition in the telecommunications sector, particularly impacting smaller operators and potentially affecting consumers at the end of the chain.”

Luã Cruz (Director of Events and Communication, Brazilian Chapter of the Internet Society – ISOC-Brasil and Researcher in Telecommunications and Digital Rights at the Brazilian Institute for Consumer Defense – IDEC):

“[The ‘shared’ cost] becomes a constraint on consumer access, which, in turn, leads to digital inequality [thereby] limiting innovation. The entry cost for a given service would skyrocket, making it impossible for smaller entities without the negotiating power of major players like Netflix to have their content prioritized.”

Floriano de Azevedo Marques Neto (Lawyer and Professor at USP and FGV-RJ):

“I believe there’s a skewed focus in this debate on the cost-sharing proposal. Telcos haven’t lost ground to content providers; they’re adapting to a new market, a phenomenon observed in the telecommunications sector for at least 40 years. [...] It was the movie industry, for instance, that lost ground to major entertainment content providers, not the network operators.”

Rebeca Garcia (Lawyer and Consultant in Public Policy and Technology):

“An essential point to consider is that when we discuss the cost-sharing policy, the association is often with the entertainment industry. However, in the context of digital transformation, encompassing areas like telemedicine, teleeducation, games, and data mining for AI, we can see how the impacts extend far beyond what we are discussing at this point. The debate on this topic seems to be limited.”

Paula Bernardi (Senior Policy and Advocacy Advisor at the Internet Society):

“It is imperative to raise awareness within society regarding the global emergence of proposals to alter the current Internet traffic regime, framed within the context of ‘cost-sharing’ or ‘fair share.’ We believe that these proposals lack a foundation in an actual market problem. Some participants argue for regulation based on a false or perceived market failure, posing a risk of substantial damage to the internet ecosystem if implemented.

Nathalie Fragoso (Ph.D. Researcher in Human Rights, Digital Rights, and Sociology of Law, Partner at VMCA):

“The discrimination required for implementing the cost-sharing policy goes beyond the technical realm. Decisions in various instances, both domestic and international, recognize economic discrimination within different data packages and among different entities involved in originating or receiving these data packages. Consequently, such discrimination violates net neutrality.”

This content is part of the “Internet Toll” campaign, fostering a technical discourse on the cost-sharing proposal in the country. For further information, visit our Reference Library, the map of contributions to Anatel’s Public Consultation (including our own), and other discussions such as the Webinar called “What Has Civil Society Said About the Cost-Sharing Proposal?”.


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