Once considered the next great growth engine for the smartphone industry, Brazil is on the decline. With its economy shrinking and unemployment on the rise, many Brazilians are making do with dumb phones. They find the cost of an Internet-connected device prohibitive, particularly when they factor in mobile data fees.
One possible solution borrows from a technical breakthrough made by AT&T half a century ago.
The Brazilian government is working with local companies and Qualcomm, the world’s largest mobile phone chipmaker, on a modern version of toll-free calling. A new 1-800 system for mobile data allows Brazilians to access their bank accounts for free on smartphones without incurring data costs. The government of São Paulo plans to extend free data services to some official websites by the end of the year.