Brazil Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in brazil, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview            

Brazil’s digital economy presents substantial opportunities for U.S. industry, with the ICT sector alone valued at US$49.9 B (2023). Leading sectors include artificial intelligence (AI), cybersecurity, internet of things (IoT), edge computing, cloud services, 5G technologies, and digital government, with a focus on trusted digital public infrastructure (DPI).

AI

AI: In 2021, the Ministry of Science, Technology and Innovation launched the Brazilian AI Strategy (EBIA) aimed at guiding the actions of the Brazilian government to stimulate research, innovation, and development of AI solutions. In 2024, Brazil released the National Plan for AI which allocates approximately US$4 B to develop business innovation projects and invest in AI infrastructure and development in the country. Currently, Brazil’s proposed AI regulation (Bill No. PL 2338/2023) aims to protect fundamental rights and ensure the implementation of secure and reliable systems for the benefit of the human person, the democratic regime, and scientific and technological development. In December 2024, Brazil’s bill of law was approved by the Brazilian Senate and as of writing is with the Lower House for deliberation. There is no expected deadline for the conclusion of this process.

Cybersecurity 

The cybersecurity market in Brazil is projected to reach US$5.5 B by 2029, growing at a rate of 10.3%. The Institutional Security Cabinet’s Secretariat for Information and Cyber Security (GSI-SSIC) is responsible for planning, coordinating, supervising, and developing standards for information security activities in Brazil’s federal public administration, including cyber security, computer incident management, data protection, security accreditation, critical infrastructure, and the handling of sensitive information. In December 2023, GSI updated Brazil’s national cybersecurity policy (PNCiber) and created the National Cybersecurity Committee (CNCiber). CNCiber, led by SSIC, is made up of government and civil society representatives and aims to develop national technologies, combat cybercrime, promote the resilience of organizations (including industry) in the face of online threats, and foster international cooperation in digital security. Additionally, CNCiber is working on creating a new national cybersecurity governance body, an agency that would be responsible for its regulation, inspection, and control.

Telecommunications

  • Brazil is the world’s fifth largest internet economy (with over 177.1 M users) and the increase in mobile connectivity allows for over 94% of the Brazilian population to use the internet. Brazil’s telecom market size is estimated to reach US$43.3 B by 2029, growing at a rate of 6.17%. The growth is supported further by regulatory authorities, which play a significant role in Brazil’s transition to the 5G network.
     
  • In 2021, Brazil made the decision to open the full 6 GHz spectrum band to unlicensed wireless technologies such as Wi-Fi. This is similar to the decision made by the United States in 2020. Since then, hundreds of thousands of devices and equipment have been sold in Brazil, many by U.S. technology firms. In January 2024, Brazil’s National Telecommunications Agency (ANATEL) opened a broad policy review on current spectrum allocations, including a request for public input which specifically asked for comments on the current policy to open the full 6 GHz spectrum band for unlicensed technologies.
     
  • In Brazil, the adoption of Open RAN is gaining momentum, driven by the need to modernize telecommunications infrastructure and enhance digital connectivity, especially in remote regions. Along with increased demand for mobile data, the Brazilian government’s commitment to expand internet access presents opportunities for Open RAN initiatives.

Semiconductors 

The semiconductor ecosystem in Brazil is limited, but the Brazilian government has been eager to integrate into the global semiconductor supply chain. In August 2024 Brazil’s Senate approved the Brazil Semiconductors Program (Brasil Semicon). This program, detailed in PL 13/2020, is designed to invigorate the national semiconductor industry by promoting innovation, streamlining processes, and expanding the country’s role in global high-tech supply chains. According to the Brazilian Semiconductor Industry Association (ABISEMI), Bill 13/2020 envisions enabling new investments, the adoption of new technologies, and the increase in research and innovation in this sector, which could result in a rise in the country’s share of the chip market. The bill would also provide for the extension of incentives to the semiconductor and information and communication technology (ICT) sectors until 2029. 

Today, the Brazilian semiconductor industry only serves the domestic market through the supply of memories for ICT industry in the manufacture of smartphones, laptops, servers, and others, meeting around 8% of national demand. In 2023, Brazil exported US$18.7 M worth of semiconductors (HS code 8541). Its top three export destinations were Germany at 63%, the United States at 5%, and Japan at 5%. Its total value of semiconductor imports in 2023 totaled US$4.3 B. Brazil hopes to increase its global market share of the semiconductor industry to 4% within the next 20 years.

Data Privacy & Cross Border Data Flows 

The Brazilian National Data Protection Authority (ANPD) is charged with implementing Brazil’s General Personal Data Protection Law (LGPD) and establishing a position on cross-border data flows and the trade facilitation mechanisms that will enable these flows. In 2024, the ANPD published Resolution No. 18/2024, which regulates the actions of data protection officers (DPOs). The resolution requires processing agents to appoint DPOs through a formal act that outlines the DPO’s activities and actions. Additionally, in August 2024, the ANPD approved Resolution No. 19/2024, which regulates international data transfers and approves standard contractual clauses. The resolution brings more legal certainty to meet market needs and provides for the automatic recognition of the adequacy of countries already considered adequate by others with legislation similar to Brazil. In December 2024, ANPD published its Regulatory Agenda for 2025-2026.


Market Challenges

Regulatory Environment 

  • Digital Platform and Social Media Regulation (“Fake News Bill”): The Digital Platform regulation, also known as the “Fake News Bill” (Bill No. 2.630/2020) proposes the creation of a Brazilian Law on Freedom, Accountability, and Transparency on the Internet (a national law for digital platform regulation). The bill also addresses the need for a regulatory oversight entity on digital platforms.
     
  • Network Usage Fees: Policymakers in Brazil are considering regulation that would enforce mandated direct payments (network usage fees) from large online content and application providers to telecom operators (Internet Service Providers, ISPs). ANATEL opened Request for Information (RFI) No. 26 in 2023 on this proposed regulation to conduct a risk analysis, which would be followed by a draft policy. In May 2024, the National Telecommunications and Information Administration (NTIA), on behalf of the United States government, submitted comments to ANATEL’s RFI. In its comments, the United States government urged caution should Brazil propose “direct payment” fees to network operators from digital platforms. The full submission can be found here: U.S.G. Comment on Brazil Consultation on Digital Platforms | National Telecommunications and Information Administration (ntia.gov).
     
  • Potential Change in Policy on 6 GHz Spectrum Band: Since 2021, Brazil has been one of the leading economies to open the full 6 GHz spectrum to unlicensed wireless technologies, such as Wi-Fi. However, ANATEL has initiated policy actions that indicate Brazil may reverse its current policy on the 6 GHz spectrum band and could limit unlicensed technologies to only the lower 500 MHz of the 6 GHz band (5.925 – 6.425 GHz). A change in policy could require current equipment to be removed from the market and previously homologated equipment be recertified for sale in Brazil.

Market Entry

ICT Product Certification: According to Brazilian regulations (Federal Law 9472/97), ICT products sold and used in Brazil must have a Certificate of Conformity issued by a Designated Certification Body (OCD), indicating compliance with federal regulatory requirements. This certificate must also be approved by ANATEL. The chosen OCD will examine the technical characteristics of the product and determine applicable certifications and approvals. Brazilian law requires manufacturers of imported products to have a local representative responsible for product supply and warranty within Brazil.

WTO Information Technology Agreement (ITA): Participants in the ITA have committed to consolidate customs duties at zero for a wide range of products including computers, telecommunication equipment, semiconductors, software, scientific instruments, among others. Brazil, and other Mercosur countries, are not party to the WTO ITA and, as a result, face a higher average tariff on WTO ITA-covered goods. Brazil’s accession to the ITA would significantly benefit the flow of tech goods and facilitate the development of its digital economy.


Digital Trade Opportunities

Communications & Networking Technologies 

Brazil’s telecom market is undergoing significant growth, fueled by a surge in demand for mobile and fixed broadband connectivity, and bolstered by national initiatives to enhance fiber-optic networks, expand the 5G network, and promote digital inclusion. This growth is driven by trends such as the adoption of remote working, attractive data plans, and the increased use of smartphones, offering lucrative opportunities for investors and companies. Key players are expanding their services to meet rising consumer demand, amidst advancements in telecom infrastructure and the popularity of video streaming services. Brazilian telecom companies are at the forefront of this expansion, making the sector ripe for business investments and market entry strategies.

Cybersecurity 

Brazil is among the world’s top targets for cyberattacks and financial fraud. This indicates the need to strengthen its cybersecurity infrastructure. The Brazilian government and the private sector must implement robust measures, such as predictive fraud analysis and personal data protection, and have expressed openness to U.S. solutions to combat cyberattacks and fraud to minimize financial losses. The market’s local growth is hindered by a lack of skilled cybersecurity professionals, and the country needs to focus on workforce development programs and policy updates to meet this demand.

AI

In July 2024, Brazil launched the “AI for the Good of All” National AI Plan (PBIA), which projects investments of approximately US$4 B by 2028. The plan includes a guideline for future public policies on AI and will guide action on technology regulation, focused on promoting inclusive and sustainable development. The plan has five pillars: infrastructure and AI development; training and capacity building; AI for improving public services; AI for business innovation; and AI regulatory and governance process. It should be noted, the Brazilian government has allocated approximately US$300 M to build a Top 5 high performance computer (HPC) in the world, as well as its own chip set for AI, which aligns with its semiconductor plan and New Industrial Policy.

Open Radio Access Network (Open RAN) 

The government of Brazil continues to support the development of Open RAN and adoption of related technology. The government is helping drive telecommunications innovation and is investing to develop an Open RAN competency center. The Ministry of Communications (MCom) and ANATEL are critical players in establishing telecommunications policy and positions, and regulating these policies, including on 5G, Open RAN, and Wi-Fi technologies. Open and interoperable telecommunications networks, like those utilizing Open RAN approaches, support supplier diversity by contributing to supply chain resiliency and more secure, transparent, and reliable infrastructure. The groundwork for the Government Private Network (GPN) was established following Brazil’s November 2021 5G spectrum auction, and was seen to provide a secure network as untrusted vendors were not precluded from participating in Brazil’s 5G ecosystem. MCom delegated the task of establishing the minimum-security requirements of the GPN to ANATEL, which will be built with a Telebras core.

Satellite Industry: Brazil’s continental size, with a large coastline and extensive rainforest areas, makes the country very attractive to employ space technology towards solutions, such as communications and navigation. As a result, the satellite industry in Brazil is currently attracting significant interest from U.S. companies as Brazil actively expands broadband connectivity to rural and underserved areas. Recently, the Brazilian government created an interministerial working group to elaborate a study to learn about their communications needs and to help shape various projects related to satellites, services, and ground equipment. The government plans to publish an RFI to prospect solutions.

Resources

For more information, please contact the U.S. Commercial Service Industry Specialist at patricia.marega@trade.gov