Case Study: IBASE/AlterNex (Brazil)

By Karri Munn Venn Sep 10 1999

Sistema AlterNex: www.alternex.com.br (Alternex S/A is no longer a project of IBASE, www.ibase.org.br, or a member of the APC, but now a private commercial ISP)

Person Interviewed: Carlos Afonso

IBASE/Sistema AlterNex’ Service Offerings prior to privatisation:

• Connectivity Services
  -E-mail-Conferences
• WWW Hosting
• Content and Value-added Services
• Internet Consulting

Foundations:

The Brazilian Institute of Social and Economic Analysis (IBASE) created a project called AlterNex in 1987 to provide communications tools for NGOs. IBASE sought to advance its mission of developing a more democratic society. By July 1989, AlterNex began to offer UUCP-based e-mail and conferencing services on a full-time basis, moving on to become a full scale Internet host with a dedicated 64k connection by 1992.

The Rio Earth Summit

Also in 1992, Rio de Janeiro hosted the United Nations Conference on Environment and Development (UNCED, also known as the “Earth Summit”). AlterNex took full advantage of the Conference to showcase its complete range of ISP services. With assistance from the APC, the National Research Network (RNP) and the Rio Network (Rede Rio), AlterNex co-ordinated UNCED’s Strategic Information Project (UNCED SIP/Rio). The project was used by hundreds of delegates, researchers and NGOs from around the world for electronic exchange between the official conference centre and the Global Forum.

The success of the project established IBASE/AlterNex as Brazil’s technical solutions provider for NGOs. A substantial customer base was developed and AlterNex became a major force in defining Brazil 's Internet development path.

From Sistema AlterNex to AlterNex S/A:

The emergence of the World Wide Web in the early-1990's increased the demand for AlterNex' online services. IBASE adjusted quickly by expanding to include WWW-based content, value-added services and Internet consulting.

Unfortunately, financial difficulties at IBASE in 1994 brought to the surface concerns that AlterNex was straying too far from the organisation's research and social advocacy goals. Contention over this issue was resolved in 1996 by privatising the ISP. The new for-profit, Sistema AlterNex, was owned partially by IBASE and partially by private investors. The hoope was that this private entity could both continue to serve the needs of Alternex’s NGO client base and at the same time reach a larger, more general market. Profits from this activity would be used to finance other IBASE projects.

Unfortunately, the company operated at a loss and there were no profits to channel back into mission-based projects. By 1997, IBASE sold its portion of Alternex to the private investors. Alternex S/A exists today as a commercial enterprise with not connection to the APC or the NGO community.

The Future of the APC in Brazil:

Moving on from this experience, IBASE founded the not-for-profit Information Network for the Third Sector (RITS) in 1997. RITS will provide low cost, cutting edge, value-added services and capacity building with an eye on developing an extranet for NGOs in Brazil.

RITS is not yet a member of APC. Will RITS be able to reinstate APC's presence in Brazil? This is an important question for the many Brazilian NGOs that continue to rely on APC services. The answer remains unclear at this point in time.