Brazil - Telecoms, Mobile, Broadband and Forecasts

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Market Research Report Brazil - Telecoms, Mobile, Broadband and Forecasts
Published by	Paul Budde Communication Pty Ltd.
Published	March 26, 2012	Product code	233560
Content info	118 Pages
Price	USD 995 PDF by E-mail (Single User License) USD 1095 Hard Copy USD 1990 PDF by E-mail (10 User License) USD 2985 PDF by E-mail (20 User License) USD 3980 PDF by E-mail (Site License)

Introduction

Introduction

Abstract

Publication Overview

Brazil is the largest telecom market in Latin America, and one of the most promising. This annual report provides a comprehensive overview of trends and developments in Brazil's fixed-line, mobile, broadband, and pay-TV sectors. Subjects include:

Market and industry analyses and overviews;
Facts, figures, and statistics;
Government policies affecting the telecoms industry;
Telecom infrastructure;
International satellites and submarine fibre optic cables;
Major players, revenues, subscribers, mobile ARPU;
Fixed broadband (ADSL, cable modem, wireless, BPL, FttH);
Internet, VoIP, IPTV;
Convergence and triple play solutions;
Pay TV market;
Mobile voice and data markets;
Next generation mobile (3G, 4G, mobile broadband, LTE);
Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.

Executive Summary

Brazil's telecom market sprints forward in anticipation of the World Cup and Olympic games

Brazil's telecom revenues are expected to reach US$120 billion in 2012. With the spending power of Brazilian consumers on the rise and the upcoming 2014 World Cup and 2016 Olympic Games (both being held in Brazil), we can expect strong demand for fixed and mobile broadband, mobile telephony, and other wireless products such as smart phones and mobile applications.

The Brazilian government has been taking steps to reduce mobile, broadband, and pay TV tariffs in order to increase penetration. It has also issued a law offering tax breaks for new telecom investments. 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 orelhao, or big ear. With its simple, unobtrusive lines in fiberglass and its efficient acoustic insulation, the orelhao is considered one of the best examples of modern Brazilian design.

The Brazilian telecom sector is fully open to competition and continues to attract operators. The bulk of the market, however, remains divided between three groups: Spain's Telefonica, Mexico's America Movil, and Oi, controlled by Brazilian investors and Portugal Telecom. Telefonica operates through Telefonica Brasil, which offers both fixed-line and mobile services (the latter branded Vivo); America Movil operates through Embratel (fixed line) and through Claro (mobile); and Oi offers fixed line and mobile services under the Oi brand name.

Telefonica Brasil's previous corporate name, Telecomunicacoes de Sao Paulo (Telesp), was changed to Telefonica Brasil in October 2011, when the operator completed a restructuring process after buying out Portugal Telecom's half of mobile operator Vivo Participacoes and incorporating it into Telesp. The name Vivo was retained as a trademark for mobile business and would be adopted by the company's fixed-line operations in March 2012.

The fixed-line market leaders are the two regional incumbents Oi and Telefonica Brasil, with 45% and 26% respectively of the country's fixed lines in service, but while their basic telephony service stagnates or dwindles, long-distance incumbent Embratel and Vivendi's GVT have been steadily increasing their local market share (respectively to 19% and 6%).

Four companies dominate Brazil's mobile telecom market: Vivo, Claro, Oi, and Telecom Italia's TIM Brasil. Together, these four operators control 98% of the country's mobile subscriber base. Vivo is the leader, with about 29% of the market. TIM Brasil and Claro account for 26% and 25% respectively; the two companies have been vying for second and third place since 2004. Oi is fourth, with 18%. The remaining 2% of the market is shared between CTBC Telecom, Sercomtel, and Nextel Brasil.

Fixed-line teledensity in Brazil is about two percentage points higher than average for South America. But while 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. Mobile penetration, on the other hand, looks set to reach approximately 145% by end-2012, with the number of subscribers increasing by 19% annually. Nevertheless, mobile subscribers owning multiple SIM cards are pushing up penetration figures, hiding the fact that many Brazilians have no mobile phone at all.

After lagging behind the rest of the region, Brazil's SMS market took off in 2011, when text messaging rose by almost 69%. The increase was mainly due to the new competitive pricing models and packages offered by operators. Meanwhile, the growth of 3G in Brazil has been nothing but spectacular. The number of WCDMA subscriptions (including both mobile phones and modems) has soared from less than 2,000 in June 2008 to more than 33 million in 2012.

The number of fixed broadband subscribers continues to show solid growth rates despite the mobile broadband boom. However, there are parts of Brazil where fixed broadband does not reach, and where mobile broadband is the only option.

Fixed broadband plans on offer in Brazil have improved significantly since 2008. In fact, broadband prices in Brazil are lower than in most other Latin American countries. In terms of broadband speeds, Brazil performs well compared with Latin America, but poorly compared with the rest of the world.

Although the government's National Broadband Plan is proceeding more slowly than originally hoped, it should significantly improve broadband access in Brazil. While the aim of the plan is to bridge the digital divide, it also creates investment opportunities for operators - especially small companies and start-ups - to provide services over the state-owned broadband network. In fact, the plan envisages wholesale rather than retail service, typically in areas with low competition.

Brazil's pay TV market has experienced sustained growth, not even slowing down during the global credit crunch. The principal operators in Brazil's pay TV market are Net Servicos, Sky Brasil, Embratel, Telefonica Brasil, and Oi TV. Several operators offer pay TV services as part of triple play packages including voice and broadband.

A new pay TV law was passed in September 2011, aimed at promoting competition and expanding services. This law removed limits on foreign ownership in the cable TV sector. It also gave the green light to all telcos to provide pay TV anywhere in Brazil. Thanks to the change in legislation, fixed-line incumbent Embratel has been able to take control of its subsidiary Net Servicos, the largest multi-service cable provider in Latin America.

Market highlights:

Former state-owned incumbent Telebras, which has been reactivated to implement the government's National Broadband Plan, has been deploying fibre-optic backbone networks in Brazil's major cities.
A new broadcasting law has opened the cable TV market to fixed-line telcos and foreign investors.
The first MVNO authorisations have been issued to Sermatel, Porto Seguro, and Sisteer of France
Sky Brasil has launched 4G services in Brasilia using TD-LTE technology
Fixed-line operator GVT has launched a hybrid DTH/IPTV pay-TV service
Anatel is holding a 4G/LTE auction in the first half of 2012 and a 3.5GHz spectrum auction in the second half of 2012
The government wants all major cities to have 4G services before the 2014 FIFA World Cup.
The Brazilian government has said it intends to ensure 100% telephony coverage in rural areas by 2014
Despite delays in the deployment of DTTV, Brazil intends to complete the switchover from analogue to digital TV broadcasting in 2016.
Brazil has become the world's second-largest consumer of Twitter
Brazil's Facebook users tripled in 2011, overtaking Orkut.
Folhapar has increased its interest in UOL and delisted the company
Telefonica Brasil has acquired a 49% stake in Brazilian cable TV operator TVA from Lemontree
Embratel has taken control of cable TV operator Net Servicos de Comunicacao.
Start-up mobile operator Unicel, trading as Aeiou, has disappeared from the market leaving around R$100 million in debts
Nextel is rolling out 3G services in the second half of 2012.
Vivo is shutting down its CDMA network by mid-2012

For those needing an objective and high-level strategic analysis on Brazil, this report is essential reading and gives further information on:

The development of Brazil's fixed-line, mobile, broadband, and pay TV sectors together with industry outlook and forecasts.
Anatel's General Plan for Updating Telecom Regulations, known as PGR, which includes lists of actions to be carried out in the short term, medium term, or long term.
Company performance and ARPU.
An analysis of Brazil's broadband sector.
How different scenarios are likely to affect the fixed-line, mobile, and broadband markets in the ten years to 2020.

Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Key Statistics

2. Telecommunications Market

2.1 Country overview
2.2 Background
2.3 Outlook
2.4 Overview of Brazil's telecom market
2.5 Market analysis - 2012

3. Regulatory Environment

3.1 Regulatory developments
3.2 General Plan for Updating Telecom Regulations
3.3 Regulatory authority
3.3.1 Anatel
3.4 Privatisation of Telebras
3.5 Mirror companies
3.6 Telecom sector liberalisation in Brazil
3.7 Concessions and authorisations
3.8 Universal service goals
3.9 Government telecom funds (Fust, Fistel, and Funttel)
3.10 Foreign investment
3.11 Number portability
3.12 Access
3.13 Interconnection
3.14 Fixed-line contract renewal - 2006
3.15 Fixed-line contract renewal - 2011

4. Fixed Network Operators

4.1 Overview of fixed network market
4.2 Oi (Telemar)
- 4.2.1 Oi - Brasil Telecom merger
4.3 Telefonica Brasil
- 4.3.1 Acquisition of TVA
- 4.3.2 Telesp-Vivo merger
4.4 Embratel
4.5 GVT
- 4.5.1 Vivendi's acquisition of GVT
4.6 TIM Brasil
- 4.6.1 Intelig Telecom
4.7 CTBC/Algar Telecom
4.8 Sercomtel

5. Telecommunications Infrastructure

5.1 National telecom network
- 5.1.1 Fixed-line statistics
- 5.1.2 Public payphones
5.2 International infrastructure
- 5.2.1 Submarine cable networks
- 5.2.2 Satellite networks
5.3 Infrastructure developments
- 5.3.1 IP and voice over internet protocol (VoIP)
- 5.3.2 Very small aperture terminal (VSAT) networks
5.4 Wholesale
5.5 Forecasts - fixed-line market 2015; 2020
- 5.5.1 Scenario 1 - higher fixed line growth
- 5.5.2 Scenario 2 - lower fixed-line growth

6. Broadband Market

6.1 Overview
- 6.1.1 Broadband statistics
- 6.1.2 Broadband market analysis
- 6.1.3 Digital inclusion and GESAC
- 6.1.4 National broadband plan
6.2 Brazil's ISP market
- 6.2.1 Overview
- 6.2.2 Universo Online (UOL)
- 6.2.3 Internet Group (iG, iBest, and BrTurbo)
- 6.2.4 Terra
6.3 Broadband network operators
- 6.3.1 Telefonica Brasil (Speedy)
- 6.3.2 Oi (Velox)
- 6.3.3 Net Virtua (Net Servicos de Comunicacao)
- 6.3.4 GVT (Power)
6.4 Cable modems
6.5 Asymmetrical digital subscriber line (ADSL)
6.6 Fibre-to-the-home (FttH) networks
6.7 Broadband powerline (BPL)
6.8 Fixed wireless broadband
- 6.8.1 WiFi
- 6.8.2 WiMAX
6.9 Forecasts - fixed broadband market 2015; 2020
- 6.9.1 Scenario 1 - higher broadband growth
- 6.9.2 Scenario 2 - lower broadband growth

7. Digital Media / Digital Economy

7.1 Digital economy
- 7.1.1 E-commerce
- 7.1.2 E-government
- 7.1.3 E-health
- 7.1.4 E-learning
- 7.1.5 Smart meters/smart grids
7.2 Digital media
- 7.2.1 Media convergence
- 7.2.2 Overview of digital media in Brazil
- 7.2.3 Broadcasting market

8. Mobile Communications

8.1 Overview of Brazil's mobile market
- 8.1.1 Mobile statistics
- 8.1.2 Average revenue per user (ARPU)
8.2 Regulatory issues
- 8.2.1 Number portability (NP)
- 8.2.2 Mobile spectrum allocation and concession areas
- 8.2.3 Mobile virtual network operator (MVNO)
- 8.3 Mobile technologies
- 8.3.1 Analogue
- 8.3.2 Second generation (2G) mobile
- 8.3.3 Third generation (3G) mobile networks (UMTS)
- 8.3.4 Fourth generation (4G) mobile
- 8.3.5 Mobile handsets/smartphones
8.4 Mobile voice services
- 8.4.1 Prepaid cards
8.5 Mobile messaging
- 8.5.1 Short message service (SMS)
- 8.5.2 Multimedia messaging service (MMS)
8.6 Mobile broadband
8.7 Mobile content and applications
- 8.7.1 Gaming
- 8.7.2 m-banking
8.8 Mobile satellite
8.9 Forecasts - mobile market 2015; 2020
- 8.9.1 Scenario 1 - higher mobile market growth
- 8.9.2 Scenario 2 - lower mobile market growth
8.10 Mobile operators in Brazil
- 8.10.1 Overview
- 8.10.2 Telefonica Brasil trading as Vivo
- 8.10.3 TIM Brasil
- 8.10.4 Claro
- 8.10.5 Oi
- 8.10.6 Nextel Brasil
- 8.10.7 Algar/CTBC Telecom
- 8.10.8 Sercomtel Celular
8.10.9 Unicel/Aeiou (defunct)

9. Glossary of Abbreviations

Table 1 - Country statistics - 2012
Table 2 - Telephone network statistics - 2012
Table 3 - Internet user statistics - 2012
Table 4 - Broadband statistics - 2012
Table 5 - Mobile statistics - 2012
Table 6 - National telecommunications authority
Table 7 - Evolution of GDP in Brazil - 2000 - 2012
Table 8 - Fixed and mobile market share - 1997 - 2012
Table 9 - Telecommunications revenue - 2000 - 2012
Table 10 - Telecom revenue by segment - 2000 - 2012
Table 11 - Telecommunications investment - 2000 - 2012
Table 12 - Telecom investment by segment - 2000 - 2012
Table 13 - Fixed lines in service - operators' market share - 1999 - 2012
Table 14 - Oi - fixed lines in service - 1999 - 2012
Table 15 - Telefonica Brasil - fixed lines in service - 1999 - 2012
Table 16 - Embratel - fixed lines in service - 2007 - 2012
Table 17 - GVT - fixed lines in service - 2007 - 2012
Table 18 - Fixed lines in service and teledensity - 1995 - 2012
Table 19 - Public payphones - 1996 - 2011
Table 20 - Net and GVT - VoIP subscribers - 2005 - 2011
Table 21 - Telefonica Brasil - wholesale accesses - 2005 - 2011
Table 22 - Forecast fixed lines - higher growth scenario - 2010; 2015; 2020
Table 23 - Forecast fixed lines - lower growth scenario - 2010; 2015; 2020
Table 24 - Internet users and penetration - 1996 - 2012
Table 25 - Fixed broadband subscribers and penetration - 2001 - 2012
Table 26 - Broadband market share by technology - 2002 - 2012
Table 27 - UOL - paying subscribers - 2004 - 2011
Table 28 - Broadband operators' market share - 2003 - 2012
Table 29 - Telefonica Brasil - broadband subscribers - 2001 - 2012
Table 30 - Oi - broadband subscribers - 2001 - 2012
Table 31 - Net - broadband subscribers - 2001 - 2012
Table 32 - GVT - broadband subscribers - 2004 - 2012
Table 33 - Cable modem subscribers and penetration - 2001 - 2012
Table 34 - ADSL subscribers and penetration - 2001 - 2012
Table 35 - Forecast broadband subscribers - higher growth scenario - 2015; 2020
Table 36 - Forecast broadband subscribers - lower growth scenario - 2015; 2020
Table 37 - Pay TV operators by technology - 2012
Table 38 - Pay TV subscribers and penetration - 1999 - 2012
Table 39 - Pay TV market share by technology - 2000 - 2012
Table 40 - Pay TV operators - market share - 2000 - 2012
Table 41 - Net Servicos - pay TV subscribers - 2000 - 2012
Table 42 - Cable TV subscribers and penetration - 1998 - 2012
Table 43 - MMDS subscribers and penetration - 1998 - 2012
Table 44 - DTH subscribers and penetration - 1998 - 2012
Table 45 - World's six largest mobile markets - 2011
Table 46 - Mobile subscribers and penetration rate - 1997 - 2012
Table 47 - Evolution of mobile ARPU in Brazil - major operators - 2008 - 2011
Table 48 - Mobile market share by technology - 2002 - 2012
Table 49 - 3G subscribers and penetration - 2008 - 2012
Table 50 - Mobile prepaid/postpaid ratio - 2002 - 2012
Table 51 - Mobile broadband subscribers and penetration - 2008 - 2012
Table 52 - Forecast mobile subscribers - higher growth scenario - 2015; 2020
Table 53 - Forecast mobile subscribers - lower growth scenario - 2015; 2020
Table 54 - Mobile operators' market share - 2002 - 2012
Table 55 - Vivo - mobile subscribers - 2002 - 2012
Table 56 - Vivo/Telemig mobile subscribers - 2002 - 2007 (historical)
Table 57 - TIM Brasil - mobile subscribers - 2002 - 2012
Table 58 - Claro - mobile subscribers - 2002 - 2012
Table 59 - Oi - mobile subscribers - 2002 - 2012
Table 60 - Oi/Amazonia/BrT - mobile subscribers - 2002 - 2008 (historical)
Table 61 - Nextel - mobile subscribers - 2002 - 2012
Table 62 - CTBC - mobile subscribers - 2003 - 2012
Table 63 - Sercomtel - mobile subscribers - 2003 - 2012

Chart 1 - Fixed and mobile subscribers in Brazil - 1997 - 2012
Chart 2 - Fixed and mobile subscribers in Brazil by market share - 1997 - 2012
Chart 3 - Evolution of telecom revenue in Brazil - 2000 - 2012
Chart 4 - Evolution of telecom investment in Brazil - 2000 - 2012
Chart 5 - Fixed line market share at a glance - 2011 (Sep)
Chart 6 - Evolution of fixed lines in service - 1995 - 2012
Chart 7 - Fixed broadband technologies at a glance - 2002 - 2012
Chart 8 - Broadband market share at a glance - 2003 - 2012
Chart 9 - Evolution of pay TV in Brazil - 1998 - 2012
Chart 10 - Pay TV technologies at a glance - 1998 - 2012
Chart 11 - Pay TV operators' market share at a glance - 2011
Chart 12 - Operators' mobile ARPU - 2008 - 2011
Chart 13 - Evolution of mobile technologies - 2002 - 2012
Chart 14 - Mobile market share at a glance - 2011

Exhibit 1 - Map of Brazil
Exhibit 2 - Regions and states of Brazil
Exhibit 3 - Oi (Telemar) group at a glance
Exhibit 4 - Telefonica Brasil at a glance
Exhibit 5 - Telesp company history
Exhibit 6 - Embratel at a glance
Exhibit 7 - Embratel and Embrapar - principal subsidiaries - February 2012
Exhibit 8 - GVT at a glance
Exhibit 9 - Regions and States of Brazil
Exhibit 10 - Geostationary satellites operating in Brazil - 2011
Exhibit 11 - Regions and states of Brazil
Exhibit 12 - UOL at a glance
Exhibit 13 - Net Servicos de Comunicacao at a glance
Exhibit 14 - Subdivision of Brazil into regions and areas
Exhibit 15 - H-band for 3G services - lots, areas, and spectrum winners
Exhibit 16 - Subdivision of Brazil into regions and areas for mobile licensing
Exhibit 17 - Telefonica Brasil at a glance
Exhibit 18 - Vivo - concessions
Exhibit 19 - The uneasy marriage between Telefonica and Portugal Telecom (historical)
Exhibit 20 - TIM Brasil at a glance
Exhibit 21 - TIM Brasil - concession awards for frequency bands A, B, D, E
Exhibit 22 - Claro Brasil at a glance
Exhibit 23 - Claro - concessions
Exhibit 24 - Oi (TNL PCS) at a glance
Exhibit 25 - Oi - concession awards for frequency bands A, D, E, M

Brazil - Telecoms, Mobile, Broadband and Forecasts published by Paul Budde Communication Pty Ltd. in March 26, 2012. This report consists of 118 Pages and the price starts from US $ 995.

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