Brazil - Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses

Synopsis

The Brazilian fixed-line market has been adversely affected by consumers substituting services for mobile and VoIP solutions. The number of fixed lines continues to fall slowly, despite gains in the VoIP sector. VoIP services in Brazil are not regulated by the telecoms regulator and are offered by many service providers. The main Brazilian VoIP providers are Net Serviços and Telefónica.

Internet connectivity in Brazil is provided by a number of submarine cables to the USA, Central and South America, Africa and the Caribbean. New cable systems are due to come into service which will increase bandwidth and push down broadband prices for end-users. Investments are ongoing into extensive terrestrial cables between Brazil, Argentina and Chile which will connect to the EllaLink cable and provide a link between Sao Paulo and both Lisbon and Madrid.

Given the remoteness of many communities, satellite communications have retained an important role in Brazil. The Amazon jungles of the north make satellites the major communication platform, as it is almost impossible to lay fibre optic cable in the thick vegetation.

The bulk of the market is divided between three key operators: Telefónica, América Móvil and Oi.

Telefónica operates through Telefónica Brasil, which has integrated its fixed-line and mobile services under the brand name Vivo. The América Móvil group in Brazil comprises long-distance incumbent Embratel, mobile operator Claro, and cable TV provider Net Serviços. The group has merged its divisions, including Embratel, and provides fixed and mobile services under the Claro brand, previously used only for mobile services. Oi offers fixed-line and mobile services under the Oi brand name.

This report provides a review of Brazil’s telecom market including infrastructure and the regulatory environment. It profiles the main fixed-line operators and provides relevant statistics and analyses.

Key developments:

EllaLink cable system making progress;
GlobeNet and Facebook start laying the 2,500km Malbec cable;
Seabras-1 cable to provide direct route between the US and Brazil;
SAIL submarine cable running between Brazil and Cameroon completed;
Government studies Northern Connection cable network across the Amazon basin;
Report update includes the regulator's market data updates to March 2019, operator data to Q1 2019, Telecom Maturity Index charts and analyses, 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.

Table of Contents

Key statistics
Country overview
Telecommunications market

Historical overview
Market analysis

Regional Latin America Market Comparison

Telecom Maturity Index by tier

Top-tier – Market Leaders
Middle-tier – Market Challengers
Bottom-tier – Market Emergents
South America Telecom Maturity Index
Central America Telecom Maturity Index

TMI versus GDP
Mobile and mobile broadband penetration
Fixed and mobile broadband penetration

Regulatory environment

Regulatory developments
General Plan for Updating Telecom Regulations (PGR)
Regulatory authority

Anatel

Privatisation of Telebrás
Telecom sector liberalisation in Brazil
General Competition Plan
Concessions and authorisations
Mirror companies
Universal service goals
Government telecom funds (Fust, Fistel, and Funttel)
Number Portability (NP)
Access
Interconnection
Fixed-line contract renewal – 2006
Fixed-line contract renewal – 2011

Fixed network operators

Overview of fixed network market
Oi (Telemar)
Vivo (Telefônica Brasil)
Embratel (Claro)
Global Village Telecom (GVT)
TIM Brasil
CTBC/Algar Telecom
Sercomtel

Telecommunications infrastructure

National telecom network

Fixed-line statistics

International infrastructure

Submarine cable networks
Satellite networks

Infrastructure developments

Amazon cable
Very small aperture terminal (VSAT) networks

Smart infrastructure

Smart meters/smart grids

Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Brazil – 2018 (e)
Table 2 – Evolution of GDP in Brazil – 2000 – 2018
Table 3 – Telecommunications revenue – 2000 - 2018
Table 4 – Proportion of telecom revenue by segment – 2000 – 2017
Table 5 – Telecom revenue by segment – 2005 – 2017
Table 6 – Telecommunications investment – 2000 – 2017
Table 7 – Proportion of telecom investment by segment – 2000 – 2014
Table 8 – Fixed lines in service – operators’ market share – 2006 – 2018
Table 9 – Oi revenue by service – 2012 – 2018
Table 10 – Oi EBITDA, capex (Brazil) – 2012- 2018
Table 11 – Oi – fixed lines in service – 1999 – 2018
Table 12 – Vivo – fixed lines in service – 1999 – 2018
Table 13 – Claro Brazil – fixed lines in service – 2006 – 2018
Table 14 – Claro Brazil – fixed-line RGUs – 2013 – 2019
Table 15 – Claro Brazil – fixed-line revenue – 2013 – 2019
Table 16 – Claro Brazil financial data – 2013 – 2019
Table 17 – Vivo (GVT) financial data (historic) – 2012 – 2014
Table 18 – Vivo (GVT) revenue by service (historic) – 2012 – 2013
Table 19 – Vivo (GVT) – fixed lines in service (historic) – 2006 – 2015
Table 20 – TIM Brasil – fixed lines in service – 2012 - 2018
Table 21 – Algar Telecom – fixed lines in service – 2012 – 2018
Table 22 – Historic - Fixed lines in service and teledensity – 1995 – 2009
Table 23 – Fixed lines in service and teledensity – 2010 – 2018
Table 24 – International internet bandwidth – 2004 – 2016

List of Charts

Chart 1 – Evolution of telecom revenue in Brazil – 2010 – 2018
Chart 2 – Telecom revenue by segment – 2005 – 2017
Chart 3 – Latin America –Overall Telecoms Maturity Index
Chart 4 – Latin America Telecoms Maturity Index – Market Leaders Category
Chart 5 – Latin America Telecoms Maturity Index – Market Challengers Category
Chart 6 – Latin America Telecoms Maturity Index – Market Laggards Category
Chart 7 – South America –Telecoms Maturity Index by country
Chart 8 – Central America –Telecoms Maturity Index by country
Chart 9 – Latin America Telecoms Maturity Index vs GDP per Capita
Chart 10 – Latin America mobile subscriber penetration versus mobile broadband penetration
Chart 11 – Latin America fixed broadband penetration versus mobile broadband penetration
Chart 12 – Oi revenue by service – 2012 – 2018
Chart 13 – Evolution of fixed lines in service – 2005 – 2018

List of Exhibits

Exhibit 1 – Map of Brazil
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – South America - Key Characteristics of Telecoms Markets by Country
Exhibit 4 – Central America - Key Characteristics of Telecoms Markets by Country
Exhibit 5 – Regions and states of Brazil
Exhibit 6 – Regions and states of Brazil
Exhibit 7 – Regions and States of Brazil
Exhibit 8 – Atlantic Cable System – planned
Exhibit 9 – Geostationary satellites operating in Brazil

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