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Internet, the national model and an approach to a pricing policy for its operation in Brazil

ABSTRACT

The main objective of this paper is to present some economic aspects that have been taken into account as a basis for the establishment of a pricing policy for the operation of the internet in Brazil, basically when it is moving from its academic towards its commercial phase. In this respect, the paper seeks to give an overview of what is the internet and its model in Brazil, together with the possibilities and potential limits for its growth in the Brazilian territory. Then, after taking the marginal cost principle as a platform for a pricing policy for the internet, the paper suggests the second best approach as the most adequate to the Brazilian social and economic realities.

KEYWORDS:
Internet; innovation; information technology; pricing

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