Nov 24, 2020

 The Brazilian Development Bank (BNDES) and the Financier of Studies and Projects (Finep) received R$ 410 million in funds from the Fund for Technological Development of Telecommunications (Funttel), the largest amount since its creation, 20 years ago. The funds, shared equally between the two fund operators, aim to increase the competitiveness of the Brazilian telecommunications industry, with the estimated generation of 41,000 direct and indirect jobs.

The President of BNDES, Gustavo Montezano, participated this Tuesday, 24, in the ceremony that celebrated Funttel's 20 years in the auditorium of the Ministry of Communications, in Brasília. The event was attended by ministers Fábio Faria (Communications), Tereza Cristina (Agriculture), Marcos Pontes (Science, Technology and Innovations), and Milton Ribeiro (Education).

Minister Faria delivered symbolic checks to BNDES and Finep. According to Faria, the Fund has a relevant role in the provision of broadband service in the country. “Today, after the pandemic, we realized that the internet is a service as essential as health, safety, agriculture,” the minister said.

Of the total budget made available by Funttel, half will be under the responsibility of BNDES. There will be R$ 205 million in 2020, an amount higher than last year, of R$ 150 million, and the R$ 95 million of the first raising, in 2018. The Bank will also try to disseminate new technologies to telecommunications service providers and users of connected solutions.

Funttel promotes a strategic social impact agenda, with themes focused on Economy 4.0, Connected Society (Internet of Things), Digital Public Services and Cybersecurity, among others. The Fund's objectives are in line with the Strategic Guidelines of the BNDES's Triennial Plan (2020-2022).

Montezano said at the ceremony that BNDES could use funds from other sources of the Bank to leverage Funttel's shares. According to the President, BNDES will also evaluate the possibility of taking funds to small and medium-sized companies through partners. “We are working to be able to further capillarize this fund and give digital connection to 800,000 Brazilians, moving towards bringing communication, information and reducing social inequality.”

BNDES, in three years, has already approved seven Funttel operations, with the use of R$ 170 million. In 2018, for example, financing for the fiber optic expansion plan of the company Brisanet provided broadband internet for about 200,000 people in 15 cities in Paraíba and Pernambuco. There were almost 20,000 kilometers of optical fiber and equipment with technology developed in Brazil.

A similar project was developed last year in support of the internet provider Starweb, with the implementation of 3,000 kilometers in a data transport network connecting 25 municipalities in the interior of Minas Gerais. Still related to the democratization of broadband, the Sumicity's project, which will bring fast and quality internet to the interior of Rio de Janeiro, Minas Gerais and Espírito Santo, is currently being hired.

Intelbrás' technological development plan was also supported by Funttel and BNDES. The support was responsible for financing more than 350 Research and Development employees responsible for the development and improvement of more than 150 products in the areas of security systems, networks, telecom and access control. There was also an expansion of opportunities in structuring new businesses based on the application of the Internet of Things concept.

About Funttel – The Fund for the Technological Development of Telecommunications was created in 2000 with the objective of stimulating technological innovation, training human resources and granting access to credit for small and medium-sized companies. The funds are operated by BNDES and Finep, institutions that make up the fund's Management Council along with the ministries of Science and Technology, Communications and Economy. Funttel's mission is to increase the competitiveness of the Brazilian telecommunications industry via research and development projects, technology centers and investment capital. The fund's main revenue comes from a percentage of the billing of telecommunications service providers (0.5%).

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions are focused on the socio-environmental and economic impact in Brazil. The Bank offers special conditions for micro-, small- and medium-sized companies, in addition to social investment lines, aimed at education and health, family farming, basic sanitation and urban transport. In crisis situations, the Bank acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.