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What to Expect from Brazil's Internet of Things Action Plan

The country's federal government has announced a report that will serve as the basis for the development of a national strategy for the IoT.
By Edson Perin
Oct 09, 2017

Last week, Brazil's federal government introduced the Internet of Things (IoT) Action Plan at a telecommunications event in Sao Paulo, along with various federal authorities (see Brazilian Government Announces Internet of Things Study). The study is the result of work from a consortium formed by McKinsey & Co., Fundação CPqD and Pereira Neto | Macedo Advogados.

The question now is what to expect from this report and the action plan, and how real-world companies can benefit from these efforts. To help businesses understand this, a document was unveiled at Futurecom, Latin America's largest information and communication technology event. The document was unveiled during a presentation by the consortium companies, which was recorded in a pair of video (see the links below and on the following page).

IoT Action Plan for Brazil, Part 1 (in Portuguese)

On Oct. 4, 2017, the Brazilian government offered new details regarding the country's National Internet of Things Plan. The Ministry of Science, Technology, Innovation and Communications (MCTIC), the National Bank for Economic and Social Development (BNDES) and the consortium led by McKinsey & Co., with the participation of the CPqD Foundation and law firm Pereira Neto | Macedo, presented the structure and main ideas of the IoT Action Plan.

Priority Areas
The name of the panel revealed its intention: "Detail of IoT Application Environments." Ricardo Rivera, the head of Brazil's Department of Information and Communication Technology, revealed the economic impacts of the IoT in the four environments prioritized by the study: rural, cities, health and industries. The range of values below represent the impact differences according to how many of the measures recommended in the plan will actually be implemented.

For cities, the projection is an increase of $13 billion to $27 billion in gross domestic product by 2025. In addition, there is the potential for a 15 percent decrease in the amount of time spent on traffic and a 20 percent decrease in crime rates. In the area of health, the impact will be $5 billion to $39 billion, highlighting a reduction of up to 30 percent in the incidence of serious crises generated by chronic diseases and 40 percent in maintenance costs of medical equipment, as well as improvements in promoting the population's health and in the prevention of epidemics.

"The easiest environment is the rural environment," Rivera told Futurecom's audience, "as we have verified that IoT solutions in this segment are already growing very rapidly." The study estimated an impact of $5 billion to $21 billion by 2025 with the IoT's adoption in this area. Other projections corroborate this expectation, such as an increase of up to 25 percent in the production of Brazilian farms and a drop of up to 20 percent in the use of agricultural inputs (pesticides, fertilizers and so forth).

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