2016 Brazil - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Brazil’s government approves additional funding for National Broadband Plan

Supported by a population of some 204 million, the Brazilian telecoms market is among the largest in Latin America. Telecoms revenue has been adversely affected by the ongoing economic crisis which has dented consumer confidence and reduced spend on services.

The country’s telecom infrastructure will be significantly augmented during the next two years as additional submarine cables become ready for service. In addition, the government-owned SGDC satellite, due to be launched in March 2017, will provide defence communications for the Ministry of Defence as well as broadband services to support the National Broadband Plan (PNBL), a project which recently secured additional funding.

Substantial investments and regulatory reforms were implemented before the FIFA World Cup was held in 2014 and again before the 2016 Olympic Games. The Games stimulated investment in infrastructure, though the chief beneficiaries were the host cities rather than the country at large.

The fixed-line market has been hit by consumers substituting services for mobile and VoIP solutions. The broadband market is also one of the largest markets in the region, though broadband penetration is only slightly above the Latin American average, trailing behind neighbouring Chile, Argentina, and Uruguay. The mobile market is dominated by the four network operators Vivo, Claro, TIM and Oi. All four secured spectrum in the 2.5GHz band with which they are expanding their LTE networks and so capitalising on consumer demand for mobile data services. The government has also sanctioned the use of the 700MHz band – previously allocated to TV broadcasters – for mobile broadband use, though the spectrum will not be fully released by broadcasters until further into 2017.

The mobile subscriber base grew rapidly for a number of years, in line with the increasing footprint of mobile networks, but since late 2015 the number of subscribers has fallen sharply. This was partly due to operators cancelling dormant SIM cards, as also to pricing competition which eroded the need among some consumers to hold SIM cards from different providers and so take advantage of cheaper on-net offers. Another factor has been the economic recession.

This report provides detail on Brazil’s telecom market, including an assessment of infrastructure developments and the regulatory environment. It profiles the main fixed-line operators and examines their strategies in the light of relevant company financial and operating statistics. The report also reviews the digital media and broadband markets, accompanied by analyses and broadband scenario forecasts to 2021. In addition the report examines the mobile voice and data market, including a range of statistics and analyses, as also scenario forecasts.

Key developments:

• Telebrás aiming to use the SDGC satellite for broadband services after launch in March 2017;
• ACSea submarine cable linking Brazil and Europe contracted by Telebrás and IslaLink;
• Government approves an additional R$15.1 billion for National Broadband Plan;
• Bankrupt Oi seeks to invest R$24 billion through to 2019 in LTE and fibre infrastructure;
• Net Serviços launches a 500Mb/s service for the residential market;
• Claro and Net trial LTE Broadcast technology;
• EU and Brazil sign cooperation agreement to develop 5G technologies;
• Ericsson contracted by América Móvil to pave a path to 5G;
• LTE subscriber reaches 60 million by end-2016;
• Ministry of Communications approves projects worth R$450 million to deliver LTE-450 to municipalities in 14 states;
• Videostreaming and economic crisis causing drop in pay-TV subscriber base;
• Report update includes the regulator’s market data to December 2016, company financial and operating data for Q4 2016, recent market developments.

Companies mentioned in this report:

Vivo (Telefônica Brasil), TIM Brasil, Oi, Embratel, Net Serviços, GVT, CTBC, Global Crossing, Star One, TelesatBrasil, Hispamar, Telebrás, Claro, TIM Brasil, Intelig, Algar Telecom, Sercomtel, GVT, Net Serviços de Comunicação, Sky Brasil, Claro TV, Vivo TV, Oi TV, GVT TV, Vivo, CTBC/Algar Telecom, Vivo, Oi, Embratel, GVT, Universo Online (UOL), Net Serviços de Comunicação, TIM Brasil, Intelig, CTBC/Algar Telecom, Sercomtel, Neovia, Eletropaulo Telecom, Copel, BuscaPé, Telefônica Brasil/Vivo, TIM Brasil, Claro, Oi, Nextel Brasil, Algar/CTBC Telecom; Sercomtel Celular.