Telecommunications in Brazil has come a long way in the past 11 years. Before 1998, all of the phone services provided in the country were owned and operated by State companies. This all changed via a large privatization auction in which all the companies were sold. Before this privatization, all long distance and international calls were controlled by Embratel, which was purchased by the US company MCI. Telebras was the company that owned all local phone services; one in each state in Brazil. Mobile phones were also owned by Telebras subsidiaries.

Purchasing a phone during this time was very difficult and often impossible. The companies would decide how many phone lines would be allowed, so there were limits as to who could own one. To buy one, customers were forced to become shareholders in the company itself. Sometimes people had to wait years to have a line installed. Mobile phones were given out based on draws, much like a lottery. Then in 1998 it all changed and the situation has much improved.

Today, all of Brazil’s telecommunication services are privately owned. The two organizations that control legislation and monitor ethics are The Ministry of Communications for long term planning and strategy, and Anatel, or Agencia Nacional de Telecomunicacoes, which is responsible for regulatory statutes. For example, Anatel controls maximum prices to make sure companies are following a general guideline.

Telephone bureaus in many towns also offer landline services for international and interstate calling. When making such a call, you would ask for a key at the desk, use the key to make the call and pay for the call at its conclusion. Blue phones are generally for long distance or interstate calls, while red phones are for local ones.

The main operators for landline services in Brazil include: Embratel, Telefonica, Telemar, Intelig, Brasil Telecom, Vesper, CTBC Telecom, GVT (Global Village Telecom), and Sercomtel. Many of these only operate in one or two states within Brazil and some are primarily for long distance and international calls.

In 2001 it was estimated that there were approximately 28 million cellular phone users in Brazil, and the numbers have grown. Much like for landline phones, the country was broken up into geographical areas, or zones, for the chartering of mobile phone services. Each state has anywhere between two and four mobile phone operators to choose from which fall into eight groups. These company groups include: Vivo, Claro, Tim, Oi, BrT Movel, CTBC, Sercomtel and Aeiou. Some of these groups are controlled or in partnership with the landline providers, so there is much crossing over. Mobile connections can be quite bad throughout the country, so many opt for a roaming plan, which costs more but makes it easier to communication state by state.

Brazil's telecommunication system has come a long way due to the Telecommunications Act of 1997 in making it possible to secure a landline or a mobile phone. To call Brazil internationally you must dial 011 55 and then the area code and number you wish to call.