Private-Public Partnerships for Expanding Broadband Access: Lessons from the Cinturão Digital do Ceará Network in Brazil

Abstract

The Cinturão Digital do Ceará (CDC) is a pioneering infrastructure project that delivers broadband access to larger cities, small towns and rural areas throughout the State of Ceará in northeastern Brazil. The CDC was built and operated using a unique business model that innovates on the conventional public-private partnership (PPP) – an increasingly popular means to undertake Information Communications Technology (ICT) deployments. The CDC case also illustrates how an “open” business model – involving public, private, and academic stakeholders – can be utilized in a developing country setting to improve broadband access, spur business innovation, and promote urban and regional development. The CDC experience also shows how government investments in broadband infrastructure can (paradoxically) facilitate the participation of private companies and foster competition. We review the technical, legal and organizational features of the CDC project with a focus on how they were designed to cope with the unique economic and political conditions of the region. It is particularly instructive how the CDC business model evolved over time in response to political challenges and market failures. We highlight how the model can be adapted to other regions within Brazil, as well as to other developing countries that seek to pursue the dual goals of financial sustainability and expansion of broadband access to underserved populations.

Keywords: public-private partnership, broadband access

JEL Classification: L32, L96, O18, O22