Brazil - Telecoms, Mobile and Broadband

Brazil has one of the largest mobile markets in Latin America due to the sheer size of its population. Healthy competition in the mobile market has helped reduce the price of mobile services in Brazil in recent years and mobile service providers have had much success in converting their customers from prepaid to contract plans. Mobile broadband take-up has been rapid, with around 250 million subscriptions as of October arch 2021, bringing the penetration rate to 117%.

The principal telcos include Telefônica Brasil, operating fixed-line and mobile services under the Vivo brand, as well as América Móvil operating services under the Claro brand. Oi also offers a range of services though the company's financial difficulties recently forced the company to sell its mobile, tower and data centre units in a bid to reduce debt.

The multi-spectrum auction, intended to push the development of 5G, was scheduled for March 2020 but was delayed due to interference issues with satellite TV broadcasts and the pandemic. The auction was completed in November 2021, and spectrum was assigned in the following month. The licensees are obliged to provide 5G services to all capital cities by July 2022, as well as about 35,500km of the national highway network.

The country also has one of the largest fixed line broadband markets in Latin America, though broadband penetration is only slightly above the regional average, trailing behind Chile, Argentina, and Uruguay. Amendments to the licensing regime adopted in October 2019 also require that ISPs which have switched to authorisations invest money saved from lighter regulations in the expansion of broadband services.

The fixed line broadband market has seen rapid growth for a number of years, with a growing focus on fibre broadband. In 2019 the number of fibre accesses overtook DSL connections. Vivo has the largest share of the fibre market, followed by Oi and Claro.

The country is a key landing point for a number of important submarine cables connecting to the US, Central and South America, the Caribbean, Europe, and Africa. Several new cable systems are due to come into service through to 2022, which will increase bandwidth and push down broadband prices for end-users. Investments have also been made into terrestrial fibre cables between Brazil, Argentina, and Chile.

The traditional fixed-line market continues to suffer from consumers substituting services for mobile and fixed broadband solutions.

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. The report also covers the mobile voice and data segments, providing a range of statistics and analyses, as also subscriber forecasts. In addition, the report reviews the fixed and fixed-wireless broadband sectors, including an assessment of technologies and regulatory influences.

Key developments:

Regulator concludes multi-spectrum 5G auction;

IHS completes its acquisition of a 51% stake in FiberCo;

BTG Pactual buys 58% of Oi's fibre business Infraco for $2.3 billion;

Regulator allows accredited MVNOs to sign access agreements with more than one MNO;

Algar Telecom acquires Vogel Telecom, adds 3,400 corporate clients;

Regulator allows operators with spectrum in the 850MHz band to extend their concessions until the end of November 2028;

Tannat submarine cable connecting Brazil and Argentina ready for service;

Telefônica Brasil and CDPQ create wholesale fibre broadband business, dubbed FiBrasil;

América Móvil spins off towers and other related passive infrastructure in its Latin American markets;

Operators launch 5G services on a limited basis;

Report update includes the regulator's market data updates to June 2021 and operator data to Q3 2021, updated Telecom Maturity Index charts and analyses, assessment of the Covid-19 pandemic on the telecom sector, recent market developments.

Companies mentioned in this report:

Telefônica Brasil (Vivo), Brisanet, BTG Pactual, TIM Brasil, Claro, Huawei, Oi, Nextel Brasil, CTBC/Algar Telecom, Sercomtel Celular, Vodafone Brazil/ARQIA, Embratel, Ericsson, Google, GVT, Universo Online (UOL), Net Serviços de Comunicação, Intelig, Neovia, Eletropaulo Telecom, Copel, BuscaPé, Global Crossing, Star One, TelesatBrasil, Hispamar, Telebrás, Intelig.

Key statistics

Country overview

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Historical overview
Market analysis

Regulatory environment

Regulatory developments
General Plan for Updating Telecom Regulations (PGR)
General Telecommunications Act
Regulatory authority
Fixed-line developments
- Privatisation of Telebrás
- Telecom sector liberalisation
- General Competition Plan
- Concessions and authorisations
- Competitive local exchange carriers (CLECs or 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
Mobile network developments
- Mobile spectrum allocation and concession areas
- Mobile Number Portability (MNP)
- Roaming
- Mobile Termination Rate (MTR)
- Network sharing
- Tower infrastructure

Mobile market

Mobile statistics
Mobile infrastructure
Analogue networks
Digital networks
- 5G
- 4G (LTE)
- 3G
- GSM
Mobile data
- SMS
Mobile broadband
Machine-to-Machine (M2M)
Major mobile operators
- Introduction
- Vivo (Telefônica Brasil)
- TIM Brasil
- Claro Brazil (América Móvil)
- Oi
- Nextel Brasil
- CTBC/Algar Telecom
- Sercomtel Celular
- Unicel/Aeiou (defunct)
- Mobile Virtual Network Operators (MVNOs)
Mobile content and applications
- Mobile economy

Fixed-line broadband market

Introduction and statistical overview
- National Broadband Plan
- Broadband for Schools
- Digital inclusion and GESAC
- Integrated and Sustainable Amazon Program (PAIS)
- Connected North program
Broadband statistics
Fixed-line broadband technologies
- Hybrid Fibre Coax (HFC) networks
- Digital Subscriber Line (DSL) networks
- Major fixed-line broadband operators
- Fibre-to-the-Premises (FttP) networks
Other fixed broadband services
- Broadband Powerline (BPL)
- Fixed wireless

Digital economy

Internet of Things

Telecommunications infrastructure

National telecom network
Fixed-line statistics
International infrastructure
- Submarine cable networks
- Terrestrial networks
- Satellite networks
Infrastructure developments
- Conexao Norte (Amazon cable)
- Ciencia Conectada program
- Very small aperture terminal (VSAT) networks
Smart infrastructure
- Smart meters/smart grids
Data centres

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Brazil - 2021 (e)
Table 2 - Evolution of GDP in Brazil - 2011 - 2021
Table 3 - Change in telecommunications revenue and proportion to GDP - 2011 - 2021
Table 4 - Change in proportion of telecom revenue by segment - 2011 - 2021
Table 5 - Development of telecom revenue by segment (R$ billion) - 2011 - 2021
Table 6 - Change in telecommunications investment and proportion of revenue - 2011 - 2021
Table 7 - Change in telecommunications investment by sector (R$ billion) - 2009 - 2018
Table 8 - Change in proportion of telecom investment by segment - 2009 - 2018
Table 9 - Revenue for government telecom funds (R$ billion) - 2016 - 2020
Table 10 - Change in the number of fixed number portings - 2015 - 2021
Table 11 - Growth in the number of annual mobile numbers ported - 2011 - 2021
Table 12 - Decline in the MTR (R$/minute) - 2016 - 2019
Table 13 - Growth in the number of mobile towers by operator - 2011 - 2021
Table 14 - Growth in the number of active mobile subscribers and penetration rate - 2011 - 2026
Table 15 - Change in the prepaid/postpaid ratio of mobile connections - 2011 - 2021
Table 16 - Change in mobile voice and data ARPU (R$ per month) - 2011 - 2021
Table 17 - Mobile ARPU - major operators (R$ per month) - 2009 - 2021
Table 18 - Change in mobile market share of subscriptions by technology - 2009 - 2021
Table 19 - Growth in the number of LTE subscribers - 2013 - 2021
Table 20 - Development in the number of LTE subscribers by operator (million) - 2013 - 2021
Table 21 - Change in LTE subscriber market share by operator - 2014 - 2021
Table 22 - 3G and LTE network population coverage - 2011 - 2021
Table 23 - LTE geographic and population coverage by operator - 2021 (September)
Table 24 - 3G municipal coverage - 2011 - 2021
Table 25 - Decline in the number of 3G subscribers and market share - 2011 - 2021
Table 26 - Decline in the number of GSM subscribers - 2011 - 2021
Table 27 - Growth in the number of mobile broadband subscribers and penetration - 2011 - 2026
Table 28 - Mobile broadband accesses by major operator (million) - 2013 - 2021
Table 29 - Mobile broadband accesses by minor operator (thousand) - 2013 - 2021
Table 30 - Increase in mobile broadband population coverage by major operator - 2011 - 2021
Table 31 - Change in the market share of mobile broadband accesses by major operator - 2018 - 2021
Table 32 - M2M terminals - 2011 - 2021
Table 33 - Mobile operators' market share of subscribers - 2011 - 2021
Table 34 - Change in the number of Vivo's mobile subscribers - 2011 - 2021
Table 35 - Increase in the number of Vivo's LTE subscribers and penetration - 2015 - 2019
Table 36 - Growth in Vivo's mobile data traffic - 2013 - 2019
Table 37 - Development of Vivo's mobile financial data (€ million) - 2013 - 2021
Table 38 - Development of TIM Brasil's financial data (R$ billion) - 2009 - 2021
Table 39 - Development of TIM Brasil's financial data (€ billion) - 2011 - 2021
Table 40 - Change in the number of TIM Brasil's mobile subscribers - 2011 - 2021
Table 41 - Development of Claro Brazil's mobile revenue - 2009 - 2021
Table 42 - Growth in the number of Claro Brazil's mobile subscribers - 2011 - 2021
Table 43 - Decline in Oi's mobile revenue - 2012 - 2021
Table 44 - Change in the number of Oi's mobile subscribers - 2011 - 2021
Table 45 - Change in Oi's mobile ARPU - 2016 - 2020
Table 46 - Nextel revenue - 2010 - 2019
Table 47 - Nextel Brazil financial data (R$ million) - 2017 - 2019
Table 48 - Nextel Brazil ARPU (R$ per month) - 2017 - 2019
Table 49 - Change in the number of Nextel Brazil's mobile subscribers - 2011 - 2019
Table 50 - Nextel Brazil - mobile subscribers by type - 2015 - 2018
Table 51 - Development of Algar Telecom's financial data (R$ million) - 2010 - 2021
Table 52 - Algar Telecom voice revenue (mobile and fixed) - 2009 - 2021
Table 53 - Growth in the number of Algar Telecom's mobile connections - 2011 - 2021
Table 54 - Growth in the number of Algar Telecom's mobile subscribers by type - 2018 - 2021
Table 55 - Decline in the number of Sercomtel's mobile subscribers - 2011 - 2021
Table 56 - MVNO subscribers - 2012 - 2021
Table 57 - Port Seguro mobile subscribers - 2012 - 2019
Table 58 - ARQIA mobile subscribers - 2013 - 2021
Table 59 - Schools connected via the broadband for Schools program - 2009 - 2018
Table 60 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 61 - Change in the fixed broadband market share of subscribers by main operator - 2011 - 2021
Table 62 - Fixed broadband accesses by technology (thousand) - 2017 - 2021
Table 63 - Growth in the number of cable modem subscribers and penetration - 2011 - 2021
Table 64 - Decline in the number of DSL subscribers and penetration - 2011 - 2021
Table 65 - Change in the number of Oi's broadband subscribers - 2011 - 2021
Table 66 - Growth in the number of Claro's fixed broadband subscribers - 2011 - 2021
Table 67 - Change in the number of Vivo's broadband subscribers - 2011 - 2021
Table 68 - Telefônica Brasil (Vivo) FttP homes passed and connected - 2011 - 2021
Table 69 - Growth in the number of TIM Brasil's broadband subscribers - 2012 - 2021
Table 70 - Growth in the number of Algar Telecom' broadband subscribers - 2009 - 2021
Table 71 - Growth in the number of fibre broadband subscribers - 2011 - 2021
Table 72 - Growth in the number of Vivo's FttP/C connections - 2014 - 2021
Table 73 - Change in the number of satellite broadband connections - 2014 - 2021
Table 74 - Internet users and penetration - 2011 - 2019
Table 75 - Fixed broadband connections by speed (thousand) - 2014 - 2021
Table 76 - Change in operator market share of fixed lines - 2011 - 2021
Table 77 - Development of Oi's revenue by service (R$ million) - 2011 - 2021
Table 78 - Development of Oi's EBITDA, capex (Brazil) (R$ million) - 2012 - 2021
Table 79 - Decline in the number of Oi's fixed lines in service - 2011 - 2021
Table 80 - Decline in the number of Vivo's fixed lines in service - 2011 - 2021
Table 81 - Decline in the number of Claro Brazil's fixed lines in service - 2011 - 2021
Table 82 - Decline in the number of Claro Brazil's fixed-line RGUs - 2009 - 2021
Table 83 - Decline in Claro Brazil's fixed-line revenue - 2013 - 2021
Table 84 - Development of Claro Brazil's financial data (R$ billion) - 2013 - 2021
Table 85 - Decline in the number of TIM Brazil's fixed lines in service - 2012 - 2021
Table 86 - Change in the number of Algar Telecom's fixed lines in service - 2012 - 2021
Table 87 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026
Table 88 - Fixed lines in service by Incumbents and CLECs - 2018 - 2021
Table 89 - International internet bandwidth - 2011 - 2017
Table 90 - Historic - Mobile market share by technology - 2004 - 2010
Table 91 - Historic - Mobile prepaid/postpaid ratio - 2003 - 2010
Table 92 - Historic - Mobile subscribers and penetration rate - 1997 - 2010
Table 93 - Historic - Mobile operators' market share of subscribers - 2002 - 2010
Table 94 - Historic - Oi mobile subscribers - 2002 - 2010
Table 95 - Historic - Claro Brazil mobile subscribers - 2002 - 2010
Table 96 - Historic - Vivo mobile subscribers - 2002 - 2010
Table 97 - Historic - Sercomtel mobile subscribers - 2003 - 2010
Table 98 - Historic - TIM Brasil mobile subscribers - 2002 - 2010
Table 99 - Historic - Algar Telecom mobile subscribers - 2003 - 2010
Table 100 - Historic - Nextel Brazil's mobile subscribers - 2002 - 2010
Table 101 - Historic - Internet users and penetration - 1998 - 2010
Table 102 - Historic - Fixed broadband subscribers and penetration - 2001 - 2010
Table 103 - Historic - Share of fixed/fixed wireless broadband subscriptions by platform - 2010 - 2015
Table 104 - Historic - Cable modem subscribers and penetration - 2001 - 2010
Table 105 - Historic - DSL subscribers and penetration - 2001 - 2010
Table 106 - Historic - Wi-Fi hotspots in service - 2013 - 2016
Table 107 - Historic - Oi broadband subscribers - 2001 - 2010
Table 108 - Historic - GVT - broadband subscribers - 2004 - 2015
Table 109 - Historic - Broadband operators' market share - 2003 - 2010
Table 110 - Historic - Internet access market share by platform - 2005 - 2015
Table 111 - Historic - Average broadband access speed (download) - 2007 - 2017
Table 112 - Historic - Claro's broadband subscribers - 2001 - 2010
Table 113 - Historic - Vivo's fixed broadband subscribers - 2001 - 2010
Table 114 - Historic - Fixed lines in service and teledensity - 1995 - 2010
Table 115 - Historic - Operator market share of fixed lines - 2006 - 2010
Table 116 - Historic - Telecommunications investment - 2000 - 2010
Table 117 - Historic - Proportion of telecom investment by segment - 2000 - 2010
Table 118 - Historic - Evolution of GDP in Brazil - 2000 - 2010
Table 119 - Historic - Telecommunications revenue and proportion to GDP - 2000 - 2010
Table 120 - Historic - Proportion of telecom revenue by segment - 2000 - 2010
Table 121 - Historic - Telecom revenue by segment (R$ billion) - 2000 - 2010
Table 122 - Historic - Oi's fixed lines in service - 1999 - 2010
Table 123 - Historic - Vivo's fixed lines in service - 1999 - 2010
Table 124 - Historic - Vivo (GVT) financial data (€ million) - 2012 - 2014
Table 125 - Historic - Vivo (GVT) revenue by service (R$ million) - 2012 - 2013
Table 126 - Historic - Vivo (GVT) fixed lines in service - 2006 - 2015
Table 127 - Historic - Growth in the number of annual mobile numbers ported - 2008 - 2010
Table 128 - Historic - Change in mobile voice and data ARPU (R$ / month) - 2005 - 2010
Table 129 - Historic - 3G and LTE network population coverage - 2008 - 2010
Table 130 - Historic - 3G municipal coverage - 2008 - 2010
Table 131 - Historic - Decline in the number of 3G subscribers and market share - 2008 - 2010
Table 132 - Historic - Decline in the number of GSM subscribers - 2007 - 2010
Table 133 - Historic - M2M terminals - 2008 - 2010
Table 134 - Historic - Growth in the number of mobile broadband subscribers and penetration - 2008 - 2010
Table 135 - Historic - Change in broadband market share of subscribers by main operator - 2003 - 2010
Table 136 - Historic - Growth in the number of fibre broadband subscribers - 2008 - 2010
Table 137 - Historic - Decline in the number of Claro Brazil's fixed lines in service - 2006 - 2010
Table 138 - Historic - Telefónica/Vivo FttP homes passed and connected - 2008 - 2010
Table 139 - Historic - Increase in mobile broadband population coverage by major operator - 2008 - 2010
Table 140 - Historic - International internet bandwidth - 2004 - 2010

List of Charts

Chart 10 - Change in telecommunications revenue and proportion to GDP - 2011 - 2021
Chart 11 - Change in proportion of telecom revenue by segment - 2011 - 2021
Chart 12 - Development of telecom revenue by segment - 2011 - 2021
Chart 13 - Change in telecommunications investment and proportion of revenue - 2011 - 2021
Chart 14 - Change in telecommunications investment by sector - 2009 - 2018
Chart 15 - Change in telecommunications investment by sector - 2009 - 2018
Chart 16 - Revenue for government telecom funds (R$ billion) - 2016 - 2020
Chart 17 - Growth in the number of annual mobile numbers ported - 2011 - 2021
Chart 18 - Decline in the MTR - 2016 - 2019
Chart 19 - Growth in the number of mobile towers by operator - 2011 - 2021
Chart 20 - Growth in the number of active mobile subscribers and penetration rate - 2011 - 2026
Chart 21 - Change in the prepaid/postpaid ratio of mobile connections - 2011 - 2021
Chart 22 - Change in mobile voice and data ARPU - 2011 - 2021
Chart 23 - Mobile ARPU (R$ per month) - major operators - 2009 - 2021
Chart 24 - Change in mobile market share of subscriptions by technology - 2009 - 2021
Chart 25 - Growth in the number of LTE subscribers - 2013 - 2021
Chart 26 - Development in the number of LTE subscribers by operator - 2013 - 2021
Chart 27 - Change in LTE subscriber market share by operator - 2014 - 2021
Chart 28 - Decline in the number of 3G subscribers and market share - 2011 - 2021
Chart 29 - Growth in the number of mobile broadband subscribers and penetration - 2011 - 2026
Chart 30 - Mobile broadband accesses by major operator (million) - 2013 - 2021
Chart 31 - Increase in mobile broadband population coverage by major operator - 2011 - 2021
Chart 32 - Change in the market share of mobile broadband accesses by major operator - 2018 - 2021
Chart 33 - Mobile operators' market share of subscribers - 2011 - 2021
Chart 34 - Change in the number of Vivo's mobile subscribers - 2011 - 2021
Chart 35 - Increase in the number of Vivo's LTE subscribers and penetration - 2015 - 2019
Chart 36 - Development of Vivo's mobile financial data (€) - 2013 - 2021
Chart 37 - Development of TIM Brasil's mobile financial data - 2009 - 2021
Chart 38 - Development of TIM Brasil's financial data (€) - 2011 - 2021
Chart 39 - Change in the number of TIM Brasil's mobile subscribers - 2011 - 2021
Chart 40 - Development of Claro Brazil's mobile revenue - 2009 - 2021
Chart 41 - Growth in the number of Claro Brazil's mobile subscribers - 2011 - 2021
Chart 42 - Decline in Oi's mobile revenue - 2012 - 2021
Chart 43 - Change in the number of Oi's mobile subscribers - 2011 - 2021
Chart 44 - Development of Algar Telecom' financial data - 2010 - 2021
Chart 45 - Growth in the number of Algar Telecom's mobile subscribers - 2011 - 2021
Chart 46 - Growth in the number of Algar Telecom's mobile subscribers by type - 2018 - 2021
Chart 47 - MVNO subscribers - 2012 - 2021
Chart 48 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 49 - Change in broadband market of subscribers by main operator - 2011 - 2021
Chart 50 - Fixed broadband accesses by technology - 2017 - 2021
Chart 51 - Growth in the number of cable modem subscribers and penetration - 2011 - 2021
Chart 52 - Decline in the number of DSL subscribers and penetration - 2011 - 2021
Chart 53 - Change in the number of Oi's broadband subscribers - 2011 - 2021
Chart 54 - Growth in the number of Claro's broadband subscribers - 2011 - 2021
Chart 55 - Change in the number of Vivo's broadband subscribers - 2011 - 2021
Chart 56 - Telefônica Brasil (Vivo) FttP homes passed and connected - 2011 - 2021
Chart 57 - Growth in the number of TIM Brasil's broadband subscribers - 2012 - 2021
Chart 58 - Growth in the number of Algar Telecom' broadband subscribers - 2009 - 2021
Chart 59 - Growth in the number of fibre broadband subscribers - 2011 - 2021
Chart 60 - Growth in the number of Vivo's FttP/C connections - 2014 - 2021
Chart 61 - Fixed broadband connections by speed - 2014 - 2021
Chart 62 - Change in operator market share of fixed lines - 2011 - 2021
Chart 63 - Development of Oi's revenue by service - 2011 - 2021
Chart 64 - Development of Oi's EBITDA, capex (Brazil) - 2012 - 2021
Chart 65 - Decline in the number of Oi's fixed lines in service - 2011 - 2021
Chart 66 - Decline in the number of Vivo's fixed lines in service - 2011 - 2021
Chart 67 - Decline in the number of Claro Brazil's fixed lines in service - 2011 - 2021
Chart 68 - Decline in the number of Claro Brazil's fixed-line RGUs - 2009 - 2021
Chart 69 - Decline in Claro Brazil's fixed-line revenue - 2013 - 2021
Chart 70 - Development of Claro Brazil's financial data - 2013 - 2021
Chart 71 - Decline in the number of TIM Brazil's fixed lines in service - 2012 - 2021
Chart 72 - Change in the number of Algar Telecom's fixed lines in service - 2012 - 2021
Chart 73 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026

List of Exhibits

Exhibit 6 - Map of Brazil
Exhibit 7 - Regions and states of Brazil
Exhibit 8 - H-band for 3G services - lots, areas, and spectrum winners
Exhibit 9 - Bands for 4G services - blocks, winners, and price/MHz/population
Exhibit 10 - 700MHz auction results - 2014
Exhibit 11 - 1800MHz, 1900MHz, 2.5GHz auction bids - December 2015
Exhibit 12 - Subdivision of Brazil into regions and areas for mobile licensing
Exhibit 13 - Vivo - concessions
Exhibit 14 - TIM Brasil - concession awards for frequency bands A, B, D, E
Exhibit 15 - Claro Brazil - concessions
Exhibit 16 - Oi - concession awards for frequency bands A, D, E, M
Exhibit 17 - Regions and states of Brazil
Exhibit 18 - Regions and states of Brazil
Exhibit 19 - Regions and States of Brazil
Exhibit 20 - Submarine cable network links to Brazil in 2021
Exhibit 21 - Geostationary satellites operating in Brazil
Exhibit 22 - Historic - LTE TDD deployments
Exhibit 23 - Historic - LTE deployments
Exhibit 24 - Historic - 3G network launches by operator - 2007 - 2008

Brazil - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Brazil's regulator concludes 5G spectrum auction

Key developments:

Companies mentioned in this report:

Table of Contents

Key statistics

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits