Export Promotion Services Matchmaker Program and the Trade Development Office of Telecommunications, will lead a Matchmaker Trade Delegation to Brazil, September 14-18, 1998. The Matchmaker will target telecommunication equipment and services. The focus of the delegation will be to match participating U.S. companies with qualified agents, distributors, representatives, licensees, and joint venture partner in these markets. The delegation will be led by Gordon Keller, Project Manager, Matchmaker Program and Cecly Cohen, Trade Development.
Brazil is the largest and most industrialized nation in Latin America and is the second largest telecommunications market in the developing world. Brazil's total market for telecommunications in 1997 is estimated at $8.3 billion. The United States has the largest share of the import market. U.S. telecommunications equipment exports to Brazil in 1996 reached $734.9 million, up 19 percent from $617.8 million in 1995 and $478.9 million in 1994. The market for equipment in Brazil was estimated at $4.5 billion in 1995. While U.S. exports to Brazil have more than doubled in recent years, they remain well below market potential.
This Matchmaker is timed perfectly for U.S. firms to take full advantage of broad and sweeping market liberalization and privatization reforms coming into effect in June of 1998. Traditionally, the Brazilian telecommunications network has been controlled by the Government of Brazil, with a virtual monopoly in local, long distance and international communications. Since 1990, private companies have been permitted to provide paging, value-added and private network services in competition with the state-owned TELEBRAS. After years of false starts, the GOB under President Cardoso has pursued a comprehensive economic liberalization agenda that includes sweeping reform of the telecommunications sector. In August 1995, the legislature passed a constitutional amendment to remove the federally mandated monopoly in the telecommunications sector. The amendment maintains state control in regulating telecommunications services, but opens the sector to private sector participation through a system of concessions. The amendment also permits the privatization of EMBRATEL.
Additionally, a broad legislative proposal for telecommunications reform known as the "Minimum Law" entered into law in May 1996. It allows for private concessions in cellular, satellite and value-added services markets and provides for licensing through auctions, the proceeds of which will fund improvement of the telecommunications network. With the passage of this law, the GOB is opening up the telecommunications market to competition, beginning with the auctioning of "Band-B" cellular licenses to compete with the "Band-A" licenses operated by the Telecomunicaçoes Brasileiras S.A. (TELEBRAS) system since 1990. To date, five of the 10 "Band-B" concessions have been awarded. The Ministry of Communications (MOC) also published rules for licensing of satellite services in October 1997. The cellular market continues to experience tremendous growth as the number of TELEBRAS subscribers increased from 500,000 in 1995 to 5 million at the end of 1997. The market for cellular equipment alone is expected to rise from $2 billion in 1997 to $3 billion in 1998.
The Matchmaker's goal is to gain first-hand market information and provide access to key government officials and potential business partners for new-to-market, new-to-export U.S. telecommunications equipment and service firms desiring to enter the Brazilian market, as well as establish gateways into other South American markets.
Participants will spend two days in Sao Paulo, one day in Brasilia, and finish with two days in Rio de Janiero. At each stop, the Commercial Service will provide an extensive market briefing highlighting opportunities in the telecommunications industry, schedule one-on-one appointments with potential business partners for each participant and arrange a reception to introduce the participants to key business and government officials in the telecommunications equipment and services industries.
Mission participants will arrive in Sao Paulo on Sunday September 13th and have two days of business meetings (September 14 and 15). The delegation will then fly to Brasilia on the 15th and have meetings on the 16th, flying out that evening to Rio de Janiero for the final two days of meetings on the 17th and 18th.
Matchmaker promotion will include but not be limited to the following venues: the Export Assistance Centers and Teams; Business America Magazine; relevant trade publications; relevant trade associations; past Matchmaker and Commerce trade mission participants; various in-house and purchased industry lists. The Matchmaker will also be listed in the Federal Register and on ITA's Internet home page.
Recruitment will begin January 2, and will close on August 28, 1998 six weeks prior to the start of the mission.
Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.
Gordon Keller, Project Officer
Matchmaker Trade Delegations Program
U.S. Department of Commerce, Room 2012
Washington, D.C. 20230
Tel: (202) 482-1793
Fax: (202) 482-0178
web site: www.ita.doc.gov/exportmatch