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Welcome to My Lan-House: A New Wave of Digital Inclusion in Brazil
1
Paula Martini · Rio de Janeiro (Brazil) · Nov 12th, 2007 4:59 pm · 42 votes · 6 comments
 
Rocinha favela from the sky: social-economic divide, SantaRosa (http://www.flickr.com/photos/santarosa/162029650/), CC BY 2.0 (http://creativecommons.org/licenses/by/2.0/)
Rocinha favela from the sky: social-economic divide, by SantaRosa

Images
Vidigal favela
CC BY 2.0
Rocinha favela from the asphalt
CC BY 2.0
video
Interview with Prof. Cabral in a Vidigal favela's lan-house(5.4 Mb)
CC BY 2.0
video download
The majority of Brazilians who access the Internet today do so through lan-houses. LAN stands for “Local Area Network”, i.e, computers assembled together to allow people to play multi-player games. Popular in Asia, in places like Korea, and previously existing only in the rich neighborhoods of Brazil, they have now become a phenomenon proliferating in poor communities, especially the favelas.

A quick stroll around Rocinha, one of the biggest favelas in the world, will allow one to count around 130 lan-houses. And lan-house owners usually have no complaints about their business. Charging from US$ 0.40 to $ 1.50 for each hour surfing the web (or playing online games), their shops are full of customers. And the demand is actually larger than the installed capacity. In Fortaleza, a city in Northeast Brazil, there is a street where lan-houses stand side by side, each one belonging to a different owner. When questioned whether such door-to-door competition is not a problem, they say it is not. If the owner had more money, they would invest in more computers, since the demand seems to be unlimited.

For a long time the lan-house phenomenon was noted only by anthropologists and social scientists. However, the lan-houses are now showing up in recent statistics. Research published by the Brazilian Internet Steering Committee (CGI.br) showed that 48,08% of the people from classes D and E who access the Internet do that from commercial places like lan-houses – that social-economic classifying criteria accounts the householder education level and the ownership of a series of domestic utensils, then relating that all to a points system. The sum reached by each household is associated with a specific social-economic classes, ranged from A to E.

Happy Birthday at the LAN!

The Brazilian lan-house phenomenon is in part a side effect of a federal government programme called “computers for all”. The programme, rather than taking a patronising approach of simply distributing computers to poor people, rather created credit lines that would allow low-income families to purchase computers paying small installments every month for a few years (something like US$25 per month).

The result was an entrepreneurship fever, in which small-time entrepreneurs would buy a handful of computers, and open a shop for people to play games. Soon, they would contract a broadband connection, and resell it through their computers, in both cases charging by the hour. Economist Fábio Sá Earp, a professor at Federal University in Rio de Janeiro, who was one of the first to analyze the phenomenon, says:

“We attach to the idea of a young person going to a lan-house just for playing. But the point is: a process of appropriation of digital technology is in course. From the moment in which a poor 10-year old child accesses the web after school in order to update his/her blog or MySpace page, watch and share YouTube videos, download MP3 songs and chat via instant messenger, he/she is doing exactly the same thing that a middle class 10 year-old child that lives in Sao Paulo or New York does.”

To understand the symbolic space occupied by lan-houses in Brazil, one can note a recent trend: many of the lan-houses now offer a special area for children's birthday parties. Birthdays, which were once celebrated in Brazil in places like McDonald's, are now migrating towards lan-houses. The host invites some friends and then provides free access for all of his guests. Party bustle is guaranteed – forget the common sense: lan-houses are places of intense sociability, and have been occupying an important place in the life of the favelas. It is common to hear mothers say that they prefer their kids to be in the lan-house than wandering the streets with nothing to do.

Economics, citizenship and public policies

The most interesting aspect of the lan-house phenomenon is that there is a clear potential for them to become a place for citizenship, e-government services, and even education. The lan-house owners mention that, in the morning, there are fewer people using the computers, since kids are at school. At the same time, community members always ask the owners for training courses, for instance, if there is someone who could teach them to use the computer. That makes one wonder whether some sort of public initiative could be promoted to explore this potential. Naturally, this should be a non-intrusive programme, which would not disturb their business model, especially because lan-houses are self-sustainable businesses.

Also, it is easy to see that public service potential is already emerging from the lan-houses. For instance, many of them offer services such as payment of utilities' bills, annual renewal of taxpayer enrollment (which might take a few months if you don't have a computer in Brazil, and only a few minutes if you do), and even support to customers wanting to write resumes or to seek employment online. These services, already offered by many lan-houses, each cost around US$ 0.50 to $1.50, and include the assistance of the lan-house owner in each task.

Antonio Cabral, a professor at the Center for Technology and Society at the FGV Law School in Rio de Janeiro, emphasizes this aspect of the phenomenon:

“This is a great popular entrepreneurship movement spreading all over Brazil, but authorities have been doing nothing to encourage it. On the contrary, a few city governments are passing laws restricting their usage. Lan-houses should in the least be left alone, because they're promoting digital inclusion in the country without anybody's help.”

tags: rio-de-janeiro brazil education cybercafe lan-house digital-inclusion entrepreneurship favela rio-de-janeiro brazil local-context-global-commons citizenship mc-donalds netratings


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joaoeduardo81 I wish i knew that earlier, great business deal. Nice piece darling.
joaoeduardo81 (Brazil) · Nov 14th, 2007 9:51 pm
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mthereza Great job! Congratulations! Hope to hear from you soon.
mthereza

mthereza (Brazil) · Nov 15th, 2007 1:00 am
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jpappo Very good article. It's interesting how technology works a powerful social transformer.
jpappo (Switzerland) · Nov 20th, 2007 2:31 am
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Paula paints a colorful and overly optimistc scenario of technological "appropriation" in favelas and lan-houses, to the point of tracing the explosion of this business model to the "computers for all" policy. A few critical remarks are necessary: 1. "computers for all" certainly explains part of it, but there are other causes which may not sound as colorful and optimistic, such as expansion of "subprime" consumer credit at the expense of investments in infrastructure, the rising crime rates and absence of cultural, educational and social policies so as to encourage diversity and personal development among the poor in Brazil, the connection between drug dealers and lan houses in these areas, so that lan-houses operate as yet another outlay for money laundering, the failure of digital inclusion in schools, the privatization of telecom and educational policies, the absence of any relevant cultural production as a result of this apparent "appropriation" of technologies just to name a few. The excessive enthusiasm with lan-houses should be taken with a grain of salt in a country where public policy is often translated into more and more benefits for privatization models. In the case of favelas, the absence of the State may looik like a thriving "private sector" taking control - and I think that "cariocas" (Rio de Janeiro natives) may have a natural bias in favour of finding the best out of the deconstruction of public spaces and State-led actions. In short, there is certainly a good deal of private business energy in this phenomenon (as in India or Argentina), but one should be careful with overly optimistic and rosy pictures of digitalization in Brazil.
schwartz · São Paulo (Brazil) · Jan 02nd, 2008 6:28 pm
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Hi Gilson, it is always great to see your comment. You are correct to point this out. Massive state-sponsored digital inclusion programs in Brazil did not work well, especially because little attention was paid to the network itself.

Despite the recent announcements that the government has reached an agreement with the telco carriers to expand the broadband network until 2010 to almost all Brazilian cities, one has to be unavoidably skeptical to see whether this will be indeed effective.

Regarding the lan-house phenomenon, the enthusiasm can be explained by the fact that in spite of so many adverse factors and unintelligent public policies regarding digital inclusion, unexpected entrepreneurship efforts proved to be more effective to bring computers to poor areas than any other actions that took place before, including governmental efforts or many NGO´s that work at donating computers to the poor neighborhoods.

Accordingly, the lan-house phenomenon is not a solution in itself, and should not preclude the efforts to achieve numerous other goals that have not been fulfilled either by the government or by the third sector.

The lan-house phenomenon should be interpreted, instead, as a wake up call showing that people in all social classes are hungry for connectivity, and this is a great opportunity for devising more inclusive public policies that use technology smatrly and as a means of promoting social change. So I guess we are on the same page. Abraços, Ronaldo.
lemos · Rio de Janeiro (Brazil) · Jan 03rd, 2008 4:04 am
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Total agreement!As a former champion of public "digital inclusion" policies and a frustrated one for that matter, I indeed hope for the best!
schwartz · São Paulo (Brazil) · Jan 03rd, 2008 5:51 am
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