Introduction

In the Brazilian telecommunications regulatory landscape, the Switched Fixed Telephone Service (STFC) represents one of the fundamental pillars of the country's communication infrastructure. For companies that operate or intend to operate in the fixed telephony market, understanding the STFC and its authorization requirements is essential to operate legally and competitively.

What is STFC?

Fixed-line telephony (STFC) is a telecommunications service that, through the transmission of voice and other signals, is intended for communication between fixed points, using telephony processes. Unlike other services such as Multimedia Communication Service (SCM), STFC is specific to fixed telephony and is necessary for companies that wish to market telephone services.

STFC Modalities

The Switched Fixed Telephone Service intended for use by the general public comprises three main types:

1. Local Service

Calls made within the same billing area, usually within a municipality or metropolitan region.

2. National Long Distance Service (LDN)

Communications between different registration areas within the national territory, using carrier codes (operator code).

3. International Long Distance Service (LDI)

Calls originating from or destined for abroad, connecting Brazil with other countries.

Importance of PSTN for Providers

The STFC authorization provides greater security in telephony services and reinforces the need for operators to comply with specific standards proposed by Anatel, creating a fair competitive environment. For internet service providers (ISPs) that already have SCM authorization, obtaining STFC represents an opportunity to diversify their service portfolio.

Who can apply for STFC authorization?

All entities whose registered activity in their articles of incorporation and state registration document is related to telephone services, specifically CNAE 61.10-8-01 (Switched Fixed Telephone Services) or CNAE 61.90-6-99 (Other telecommunications activities not specified above).

How to Obtain STFC Authorization

Current Regulatory Framework

With Anatel Resolution No. 720/2020, which approved the new General Grant Regulation (RGO), there was a significant simplification in the authorization process, facilitating the entry of new providers by reducing regulatory barriers. In this new format, it is possible to pay a single fee and operate in various telecommunications services, provided they are previously authorized by Anatel.

Application Process

Companies granted licenses for Collective Interest Services may notify Anatel of their interest in operating STFC (Fixed Telephony Service), with notification occurring either at the time of the license application or after the issuance of the License Certificate.

Required Documentation

The General Grant Regulations establish in their annex the documentation required for authorization requests involving services of collective interest. The main documents include:

1. Legal Qualification

• Inform, via Anatel's computerized system, the company name and trade name (when applicable).
• CNPJ registration number and address
• Articles of incorporation and any amendments thereto, duly registered.
• In the case of corporations: shareholding composition of corporate control and documents electing directors.

2. Technical Qualification

The applicant must declare, through a computerized system provided by Anatel, that it has the aptitude to perform the activity, as well as the existence of adequate and available technical personnel to carry out the object of the authorization.

The Technical Project prepared by the applicant must contain the following information.

• Definition of the desired STFC service provision modalities (Local/LDN/LDI)
• Descriptive report of the proposed system, in a standardized form.
• Intended radio frequencies (when applicable)
• Technical Responsibility Annotation (ART), duly signed by a professional registered with CREA (Regional Council of Engineering and Agronomy) with expertise in the telecommunications field. 
• 3. Economic and Financial Qualification

The applicant must declare, via Anatel's computerized system, that they are in good financial standing and are not in bankruptcy proceedings.

4. Tax Compliance

Before formalizing the authorization, Anatel will verify the applicant's tax compliance with the Federal Revenue Service, FGTS (Brazilian employee severance fund), and Anatel itself.

The proof must cover both tax and non-tax credits, definitively established, even if there has been no registration of the debt in the active debt registry or in the CADIN (National Registry of Defaulting Debtors).

Costs

The authorization to operate telecommunications services of collective interest has a cost of R$ 400.00 (four hundred reais), paid only once as a condition for issuing the grant instrument. For bodies of the direct, autonomous and foundational public administration, the charge is R$ 40.00.

Term

The estimated time for this service to be provided is between 31 and 60 calendar days.

Benefits of STFC Authorization

1. LegalityIt operates within the Brazilian regulatory framework, avoiding sanctions and penalties.
2. Credibility: Confirms the status of an operator approved by Anatel.
3. DiversificationIt allows you to offer a more complete portfolio of services to clients.
4. CompetitivenessParticipation in a broad market with clear rules of competition.
5. InterconnectionPossibility of interconnection with other telephone operators.

Obligations of the Authorized Service Provider

After obtaining STFC authorization, the company must:

• To meet the quality targets established by Anatel.
• Maintaining tax compliance
• Meeting the technical standards of the service
• Provide periodic information to the Agency.
• To guarantee the continuity of service to users.

Public vs. Private System

It is important to highlight that fixed-line telephony (STFC) can be provided under both public (through concession) and private (through authorization) regimes. Most companies operate under private regimes, which offer greater flexibility in service provision.

References

• Anatel Resolution No. 720/2020 – General Regulation of Licenses
• Anatel Resolution No. 426/2005 – STFC Regulation
• Gov.br Portal – Telecommunications Services
• Official website of Anatel