|[May 09, 2014]
GSMA Welcomes Brazilian Government Decision to Reduce Machine-to-Machine Taxation
LONDON --(Business Wire)--
The GSMA (News - Alert) welcomes the Brazilian government's decision to pass regulation
reducing taxation on machine-to-machine (M2M) devices. The move, which
was announced by Brazil's Communications Minister Paulo Bernardo and
signed by President Dilma Rousseff, will significantly reduce the SIM
card tax on M2M devices, providing a stimulus for operators to develop
services, such as smart metering, car tracking or remote health
Brazil's M2M Reductions will have a positive impact on the economy (Photo: Business Wire)
"President Rouseuff's decision to reduce this taxation is a significant
move to stimulate the growth of M2M services and should be recognised by
other markets as a very positive and forward-looking move," said Tom
Phillips, Chief Regulatory Officer, GSMA. "M2M is a new market whose
growth should be encouraged by government policies of low taxation and
light-touch regulation. Countries like Brazil that encourage the growth
of M2M services will be the first to benefit from the social,
environmental and economic opportunities of this important new sector."
The decree will cut two fees in the Teleommunications Inspection Fund
(FISTEL) - the Installation Inspection Tax (TFI), which is charged when
a SIM is first activated and the Operation Inspection Fee (TFF), an
annual charge on each active SIM. This equates to a combined reduction
of�80 per cent.
There are approximately 8.7 million M2M connections (source: GSMA
Intelligence) currently active in Brazil, a figure that is expected to
grow exponentially following this decision. The GSMA recently released a
report called 'The
Mobile Economy Latin America' that predicted 84 million M2M
connections by 2017.
The GSMA Latin America will host a three-day Plenary in Montevideo,
Uruguay on 27-29th May inviting key government and mobile
industry representatives from across Latin America to discuss the
industry, including a seminar on M2M service models ("Connected Living",
27th May). For further information on the Plenary please go
About the GSMA
The GSMA represents the interests of mobile operators
worldwide.�Spanning more than 220 countries, the GSMA unites nearly 800
of the world's mobile operators with 250 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and Internet companies, as well as organisations in
industry sectors such as financial services, healthcare, media,
transport and utilities. The GSMA also produces industry-leading events
such as Mobile World Congress (News - Alert) and Mobile Asia Expo.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
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