Brazilian President Proposed $3.25 billion in Tax Breaks for Telecomm Networks

In an effort to strengthen Brazil's telecommunications network in the midst of the global financial crisis, President Dilma Rousseff plans to propose 6 billion reais ($3.25 billion) in tax breaks for construction in the industry.  This is just one in a series of tax breaks and other incentives aimed at protecting strategic industries in Brazil from feeling the impact of the global crisis.  It's also an expected part of the infrastructure improvement process as Brazil prepares to host for the 2014 World Cup and 2016 Olympic Games.  An auction for 4G telecommunications networks is planned for the end of April, but some companies have asked for a delay.  Analysts have warned that Brazil's existing networks will need a major overhaul to keep up with booming domestic demand, and the promise of an influx of tourists for the sporting events will put pressure on the country to make the improvements quickly.