2025 Regulatory Agenda: What changes for ISPs and Carriers

What to expect in 2025

The year 2025 begins with an intense regulatory agenda for the telecommunications sector in Brazil. Anatel has confirmed a series of public consultations and approvals that will directly impact the business models of carriers and internet providers. The regulator's focus is to foster competition and modernize the rules, but in practice this means operational adaptation for those in the market.

For technical and commercial managers of providers, the red flag is the so called "regulatory simplification". The changes expected for the first half promise to alter the way fixed broadband and telephony are treated. It is time to prepare.

The end of Norm 4 and the SCI

One of the most anticipated points is the extinction of Norm 4. This regulation created the figure of the Internet Connection Service (SCI), widely used by Brazilian ISPs. The proposal is to simplify the regulation, but the impact of this extinction needs to be analyzed calmly by providers.

The SCI was the mechanism that allowed the emergence and formalization of more than 14 thousand ISPs in the country. Changing this legal basis requires double attention in contract management and technical adequacy. Providers must follow closely the terms of the new regulation to ensure that the transition does not bring bureaucracy or unforeseen costs.

Release of landline numbering on the data network

Another strong novelty expected for definitive approval in the first half of 2025 is the definitive release of fixed telephony numbering. Anatel should establish clear rules for the interconnection of the voice service over the data network.

This is a watershed. In practice, it opens a huge field for offering voice over IP in a more robust and regulated way. For providers that already operate with softswitches and SBCs, this may mean the opportunity to expand the portfolio of fixed voice services without the old ties. Interconnection via the data network tends to become more fluid, as long as the carrier's infrastructure is aligned.

General Plan of Competition Goals (PGMC)

The new General Plan of Competition Goals also enters public consultation. The objective is to increase rivalry in the market, seeking even a fourth mobile telephony carrier after the end of Oi. For the broadband market, the historical reference is important. The last PGMC defined Small Providers (PPPs) as those with less than 5% of the national market.

This definition was the engine for the boom of regional ISPs. Now, the discussion revolves around network sharing and secondary use of the spectrum for large carriers. Although the focus is mobile, any change in the degree of competition affects the ecosystem as a whole, pressuring prices and demanding more efficiency from small providers.

Use of Spectrum and secondary market

The Regulation on the Use of Spectrum (RUE) also undergoes a profound reformulation. The idea is to create a secondary spectrum market, allowing the transfer of ownership of frequencies. This is different from the secondary use foreseen in the PGMC.

This measure aims to make the occupation of frequencies more efficient. However, it brings legal and business model challenges, as it changes the rules of the game for those who bought spectrum in previous auctions. For providers who depend on sharing agreements or rented infrastructure, these changes may alter costs and resource availability in the future.

Duties of Users and Big Techs

A topic that promises to generate much debate is the regulation on the Duties of Users. The proposal establishes rules in the relationship between telecommunications networks and large technology companies, the big techs.

The text touches on sensitive points such as "fair share", network fee and the investment of big techs in CDNs. The central discussion is whether there is substitution of telecom services by internet companies. The result of this regulation may impact the way data traffic is managed and charged, influencing the cost structure of access providers.

What the provider needs to do

With so many changes on the agenda, the provider needs to keep the radar on. The first action is to follow the public consultations scheduled for the first half. Participating actively, through associations or directly, is fundamental to defend the interests of the ISP sector.

Technically, it is the moment to review the voice and data infrastructure. With the release of landline numbering on the data network, validating the SoftSwitch and the SBC to ensure interoperability and quality is essential. Regulatory simplicity may come, but the technical complexity of interconnection remains.

Deadlines and preparation

The measures of regulatory simplification, including the end of Norm 4 and the release of numbering, are expected to be definitively approved in the first half of 2025. The public consultations on PGMC, RUE and Duties of Users should be launched in the same period, with approvals projected for 2026.

The message to the market is anticipation. Those who are technically prepared to operate voice over IP fully and understand the new competition rules will have an advantage. The regulation is heating up, and adaptation starts now.