Brazil - Fixed-Line Infrastructure - Overview, Statistics and Market Forecasts

Synopsis

Brazil’s fixed-line teledensity is about two percentage points higher than average for South America. Although the number of fixed lines continues to increase by about 1.5% a year, annual growth has been insufficient to raise teledensity, which has been stagnating at about 21% since 2002.

The country is very active in satellite networks. Because of remoteness problems, satellite communications have retained an important role in Brazil. The Amazon jungles of the north make satellites the major communication facility, as it is almost impossible to lay fibre optic cable in the thick vegetation.

The regulator Anatel has approved the country’s third universal service plan, which requires fixed-line operators to install some 108,000 public phones in rural areas including all schools and hospitals. In Brazil, outdoor pay phones are sheltered by a dome-shaped hood known as orelhão, or big ear. With its simple, unobtrusive lines in fiberglass and its efficient acoustic insulation, the orelhão is considered one of the best examples of modern Brazilian design.

This report provides an overview of Brazil’s telecom infrastructure, accompanied by relevant statistics, analyses, and fixed-line scenario forecasts for the years 2015 and 2020.

Key developments:

The Brazilian government has said it intends to ensure 100% telephony coverage in rural areas by 2014; former state-owned incumbent Telebrás, which has been reactivated to implement the government’s National Broadband Plan, has been deploying fibre-optic backbone networks in Brazil’s major cities.

Companies covered in this report include:

Telefônica Brasil, TIM Brasil, Oi, Embratel, Net Serviços de Comunicação (Net), GVT, CTBC, Global Crossing, Star One, Telesat Brasil, Hispamar.

Table of Contents

• 1. Synopsis
• 2. Telecommunications infrastructure
  • 2.1 National telecom network
    • 2.1.1 Fixed-line statistics
    • 2.1.2 Public payphones
  • 2.2 International infrastructure
    • 2.2.1 Submarine cable networks
    • 2.2.2 Satellite networks
  • 2.3 Infrastructure developments
    • 2.3.1 IP and voice over internet protocol (VoIP)
    • 2.3.2 Very small aperture terminal (VSAT) networks
• 3. Wholesale
• 4. Forecasts – fixed-line market 2015; 2020
  • 4.1 Scenario 1 – higher fixed line growth
  • 4.2 Scenario 2 – lower fixed-line growth
  • 4.3 Notes on scenario forecasts
• 5. Related reports

• Table 1 – Fixed lines in service and teledensity – 1995 - 2012
• Table 2 – Public payphones – 1996 - 2011
• Table 3 – Net and GVT – VoIP subscribers – 2005 - 2011
• Table 4 – Telefônica Brasil – wholesale accesses – 2005 - 2011
• Table 5 – Forecast fixed lines – higher growth scenario – 2010; 2015; 2020
• Table 6 – Forecast fixed lines – lower growth scenario – 2010; 2015; 2020

• Chart 1 – Evolution of fixed lines in service – 1995 - 2012

• Exhibit 1 – Regions and States of Brazil
• Exhibit 2 – Geostationary satellites operating in Brazil – 2011