CPqD

Although the bulk of its work continues to focus on telecom, CPqD has also recently expanded to sectors that require similar technology.

Graciosa: No, we are classified as a private foundation. CPqD was first created as a research center for Telebras in 1966. Then with privatization in 1988, Telebras was divided into 13 parts, 12 of which were auctioned and the other ? CPqD ? was transformed into a private foundation.

Since then, we have had the opportunity to act with other clients, other countries and other market segments. Practically all the telecom operators in Brazil are our clients, in software or consulting. We also have clients abroad and participation in some companies in Brazil and we are entering other sectors.

BNamericas: What other sectors do you focus on?

Graciosa: We are principally telecom but in the last 2-3 years we have been focusing on other sectors of the economy that share similar characteristics. For example, billing within telecom has always been complex and now so is electrical billing, so we are offering a similar billing solution for electrical companies.

BNamericas: Where does your funding come from?

Graciosa: We have three sources. The first is the software systems we develop and sell. We have over 20 different software systems and the majority of them are developed for telecom, which is our origin.

A second source is licenses for the manufacturing of products. We sell licenses and receive royalties although we are not a manufacturer. For example, the card for the Brazilian payphone is our technology. We also have optical communication systems, electrical systems and digital centers.

The third source of revenue is technical services such as testing of services in our laboratories. We also do consulting for technical studies and certification of products.

BNamericas: How do you segment your clients?

Graciosa: There are four main groups in our internal segmentation. Our largest group of clients is telecom operators and the second is corporate clients, which are large companies. Third comes government, which comprises public administration and finally, international clients to whom we export telecom products.

BNamericas: Where do you see growth in the telecom market and what will be your focus moving forward?

Graciosa: Telecom is increasingly trying to get more results out of its investment so we are focusing on software systems. There is more integration and convergence of technology so we have convergence tools like billing. We also see that mobile applications are growing so we are developing applications for cell phones. In terms of networks, the next generation network (NGN) is arriving in 2005, so we are preparing ourselves to offer new software based on NGN.

BNamericas: What tendencies within telecom will most impact your business in the future?

Graciosa: The convergence of technology. We are preparing our products for convergence and integration.

BNamericas: Where do you see VoIP fitting into the telecom landscape?

Graciosa: We think there will be an avalanche of VoIP in 2005. We are preparing for it and have launched products. We are also preparing for the increasing tendency towards wireless access with technologies such as WiMax.

BNamericas: What is your partnership strategy moving forward?