The CPqD – Telecom and IT Solutions, a private foundation from the interior of the state of São Paulo that supplies technology for the telecommunications sector, wants to find new trade partner all around the world.
The foundation was established on the structure of the research center belonging to Telebrás, the state-owned organization that had the monopoly of telecommunications in Brazil up to eight years ago, and has been selling technology since 1998, focussing mainly on systems for support to operations and business.
CPqD has revenues of US$ 93.8 million and employs 1,300 people at its headquarters, in the city of Campinas, in the interior of the state of São Paulo. In Brazil, the company is recognized for its work, but operations on the foreign market are just beginning.
According to the foreign market director at the foundation, Paulo Xavier Filho, the foreign market represents around 10% of CPqD revenues. The foundation started exporting to the United States in 2000, and is now also present in Latin America, Europe, Africa and Oceania.
Entry into the Arab countries, especially the Middle East, has been defined by CPqD as a target for 2006. "We believe that the Middle East has a great potential and that it is a very rich market that is still going to grow," explained Xavier Filho.
According to the director, when the economy of a country is growing, investment is normally made in telecommunications. The director stated that CPqD may offer the same level of technology as that supplied by Europe or the United States to the region, but at lower prices.
Abroad, CPqD always works with a local partner. The foundation normally supplies the software and the partner helps in the implementation, training of people to operate it and support.
"Apart from receiving a commission for the sale, a large share of the services are executed by the partner," stated Xavier. The advantage for CPqD is having a partner that knows the local market. "And he can count on all the CPqD technology," he said.
To enter the Arab world, the foundation first intends to study the market. One of the first steps was a meeting between CPqD directors and the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, at the organization’s offices in São Paulo, this month.
They collected further information about the possibilities of entry into the region and the best countries to begin operations in.
Despite its main focus being telecommunications, CPqD also supplies products to other sectors, like banking. The Center has gained vast experience in telecommunications due to its operation together with Telebrás and, after privatization of the company, due to supplying the multinational companies in the sector that entered the country. The Telebrás technology and development center was established in 1976.
When Telebrás was privatized, the federal government decided to transform its technology center into a private foundation. The center made an essential contribution to the development of the telecommunications infrastructure of Brazil.
Today, the foundation is run by a council of 12 members, nominated by various representative sectors in the country, like ministries, industries and academies. Every three years, one third of the group is renewed. The whole of the surplus generated by the foundation is invested in the CPqD itself.
CPqD – Telecom and IT Solutions
Tel: (+55 19) 3705-6200