This Frost & Sullivan research service titled Analysis of the Brazilian Total Telecommunications Services Market provides market sizing and forecasts by country and technology, both in terms of lines and revenues, as well as market share in the Brazilian telecommunications services market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: fixed telephony, mobile telephony, fixed broadband, data communications, pay TV, and fixed voice over Internet protocol (VoIP).

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Market Overview

Increasing Service Coverage Help the Brazilian Telecommunications Market Revenues to Grow at a CAGR of 6.7 Percent from 2010 to 2016

Intensifying Competition Stokes the Proliferation of Services and Offer of Competitive Rates

A positive economic outlook, investments in multiple-play bundles, and 3G mobile network expansions have given a huge boost to the Brazilian telecommunications services market. Brazil has been languishing behind most other Latin American countries in terms of household penetration of fixed broadband services and Pay TV services as well as mobile data services revenues. However, all this is set to change with operators recognizing an opportunity to increase service adoption through lower-priced services and multiple-play offerings. The increasing coverage of alternate telecommunications networks will enhance penetration among low-income users and even in distant geographic areas and small- and medium-sized cities. Although the Brazilian mobile services market could be considered saturated after it surpassed 108 percent in penetration in 2010, the prevalence of multiple SIM cards, mobile to mobile (M2M) services, mobile broadband, mobile virtual network operators (MVNOs), and the emergence of a social middle class are likely to help the market grow further.

“Another important factor that will accelerate the penetration of telecommunications services is the intensifying competition brought on by the deregulation of the cable TV market in Brazil,” says the analyst of this research. “This escalating rivalry among integrated participants to provide convergent services, the entrance of telecom companies in the Pay TV market, and the rise in the number of cities with coverage overlap of different fixed and mobile networks are all expected to take the market to the next level of competitiveness.” The offer of converged services by integrated companies will particularly enhance the penetration rates of fixed broadband services, Pay TV services, and mobile data services usage. On the other hand, the lack of competition in remote areas and small cities, the high tax burden, and regulators’ delay in taking important decisions related to spectrum auctions and competitive remedies could hold the market back. To resolve these issues, the Government has to ensure the implementation of the National Broadband Plan. This plan can coordinate public policies with ANATEL and reduce the tax burden on equipment as well as network elements and services.

In the current scenario, telecommunications operators have to negotiate with each other, utilities, road concessionaires, and the Government to find ways to minimize the costs and red tape for infrastructure deployment. However, the recent change in the regulatory framework for Pay TV services in Brazil unite the regulations for the different Pay TV technologies (Cable TV, direct to home (DTH), microwave multipoint distribution service (MMDS), IPTV) and will allow telecom companies to offer Cable TV/IPTV in their concession regions. This will not only enable them to offer convergent services at competitive rates but also stimulate investments in fiber and cable networks. “Most telecom companies have announced voluntarily agreements to offer popular broadband services in their footprint, which is expected to drive service adoption,” notes the analyst. “Nevertheless, the increasing penetration of smart devices (and the resulting data traffic growth) is spawning challenges related to quality of service and return on investment for operators.” Over-the-top and Internet neutrality are likely to be main issues in this complex scenario. These challenges can be assuaged to some extent by network upgrades to high-speed packet access (HSPA+) and long-term evolution (LTE). Mobile data services adoption will also surge with the extended coverage of mobile broadband networks to serve more than 90 percent of the population.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Fixed telephony
• Mobile telephony
• Fixed broadband
• Data communications
• Pay TV
• Fixed VoIP

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