Interview with Eduardo Parajo, President of Abranet

Small providers invest in fiber

Sector still needs long-term financing lines.

Eduardo Parajo, president of Abranet, confirms the growing interest of small and medium providers to use optical fiber to increase the band capacity available to end-users. But the investment could be greater if, instead of having to mainly rely on own resources, this segment had access to credit lines with longer terms.

The lifetime of an optical fiber installation reaches 25 years, but entrepreneurs do not dream with a repayment term so elastic. They would be satisfied with a financing with lower interest and term of payment that did not require that the cost were all discharged on behalf of clients.

The high cost of equipment is also the obstacle for small and medium providers to offer TV services. In addition, the economic situation of the country interrupted the growth of the market in significant indices that had been occurring in recent years. Recent measures, such as the end of the payroll tax, contribute to feed the expectation of smaller growth in the second semester.

If they lose in financial capacity, small and medium providers gain in agility in other initiatives. According to Parajo long ago this segment has shown a good performance in relation to the migration to version 6 of the Internet Protocol (IPv6). He believes that the work even surpasses what large operators have done.

According to Parajo, there is still a problem in the side of the big providers, which took too long to become aware of the size of the problem and advance the implementation of IPv6. There is a “technical reserve” of IPv4, which can still be used, but that is not enough.

In relation to the Marco Civil of Internet, Parajo recognizes the collaborative effort of government agencies, private sector and society as a whole, but warms: you cannot reinvent the wheel.

In other words, at this point we need to stick solely to technical exceptions more evident to the network neutrality. And name two: door lock 25, an exceptional work that took Brazil from a shameful position among the spam generators, and the need to combat the attacks that networks suffer daily.

Watch the video and get to know in detail the reviews and opinions of the president of Abranet.

By Renato Cruz and Nilton Tuna Mateus