Telecom sector paid R$5bn to sectoral funds in 2023

This is a machine translation of Conexis' press release

Brasília – Telecommunications service operators collected R$5 billion for sectoral funds in 2023 according to a survey by Conexis Brasil Digital, an entity that represents the largest operators in the country. The sector contributes to five funds - Fistel, Fust, Condecine, Funttel and CFRP - and almost all of these resources are not invested in the telecommunications sector: of the R$ 246.8 billion (values updated by the IPCA) collected in the last 22 years, only 8.9% were invested in the sector.

In 2023, the sector collected R$1.3 billion for Fust (Fund for the Universalization of Telecommunications Services) and, for the first time since 2001, resources from the fund were applied to financing telecommunications projects. BNDES offered R$220 million in credit lines to provide the expansion of connectivity.

The fund was created in 2000, but until then none of the resources had been used to expand connectivity. In 2020, the new Fust law allowed its use to expand access to telecom services in areas of low economic development and in schools.

“We began to see, in 2023, 23 years after the creation of Fust, a change in this reality and part of the values collected by the sector are returning in connectivity and digital inclusion projects”, says Marcos Ferrari, executive president of Conexis.

In 2023, Fistel represented 37% of the amount raised by sectoral funds with R$ 1.8 billion, followed by Fust which raised R$ 1.3 billion – 26% of the total - and Condecine, for which R$ was collected 1.2 billion, 23% of the total. Funttel and CFRP represented 7% of total revenue each (R$327.9 million for Funttel and R$342.8 million for CFRP).

The amount collected in 2023 was the same as that collected in 2022. In comparison with 2021, the year impacted by the 5G auction, there was a nominal reduction of around 28%.

About Conexis

Conexis Brasil Digital brings together telecommunications and connectivity companies, which are the platform for the digital economy, sustainability and connection for all Brazilians. Conexis, within a digital transformation movement that the world is going through, replaces the SindiTelebrasil brand, reinforcing the telecommunications sector's purpose of digitizing the country and connecting all Brazilians. Access our content by clicking here.