After a long tug of war, Anatel has decided to drop its opposition to a bill that would remove restrictions on foreign investment in cable television companies (projeto de lei 175/2001). The bill has been crawling through Congress for almost two years. Anatel wanted to reformulate all the legislation governing cable TV, mainly by merging and modernizing the Cable Act and the General Telecommunications Act. ?We?ve come to the conclusion that it would be best to back a series of partial amendments to the legislation,? said Antônio Valente, deputy director-general of Anatel, during ABTA 2002. ?It?s important to bear in mind that foreign investment alone won?t solve the industry?s problems.? Mr Valente took part in a debate with representatives of pay-TV operators on competition in the industry, expounding on Anatel?s view of the challenges to be tackled. His diagnosis closely matched the position presented by ABTA in its proposed new model for the industry.