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Brazil - Telecoms, IP Networks, Digital Media and Forecasts

Notes

Country specific reports on the topic are available for purchase. Please contact us.

Overview

This report provides a comprehensive overview of trends and developments in Brazil's telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors.

Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure developments;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttP, DSL, cable, wireless);
  • Convergence and Digital Media;
  • Mobile subscriber and ARPU forecasts;
  • Broadband market forecasts for selective years to 2020.
  • Government policies affecting the telecoms industry;
  • Market liberalisation and industry issues;
  • Telecoms operators - privatisation, IPOs, acquisitions, new licences;
  • Mobile technologies (GSM; 3G, HSPA, LTE).

Executive Summary

Market changes see Telefónica merge fixed-line and mobile operations while Oi divests Portugal Telecom interest

The Brazilian telecom sector has seen considerable changes in recent quarters, with the key players consolidating their holdings under a single brand. The market has seen sustained though slow revenue growth despite a difficult economic climate. Although the number of fixed lines in Brazil continues to increase slowly, partly attributed to VoIP connections, teledensity remains low. International infrastructure is set to improve considerably during the next two years as new cables are laid connecting to the US and Angola, while the government has also commissioned a review of an Amazon basin network connecting key areas of the country. The state-owned Telebrás will from 2017 also make use of a new satellite (under construction) to improve broadband connectivity) in rural areas.

The 2014 FIFA World Cup held in Brazil provided a stimulus to operators providing new technologies and networks such as LTE and FttP. The 2016 Olympic Games will similarly provide further encouragement from all stakeholders to improve infrastructure, though most benefits are likely to be limited to cities where events are being held.

Four companies (Telefónica's Vivo, América Móvil's Claro, Telecom Italia's TIM Brasil, and the domestic player Oi) still dominate Brazil's mobile market, though an emerging MVNO sector should begin to provide real price competition from 2016.

Operators are rolling out LTE networks at a fast pace in an effort to gain subscribers and secure revenue from mobile data services. Three of the four major mobile companies - Vivo, Claro, TIM Brasil and Oi - have secured spectrum in the 700MHz band for LTE services, though this spectrum is unlikely to be made available before late 2016 or early 2017. Mobile broadband is being supported by the declining cost of smartphones. M-commerce remains low in terms of transactions, but the country is an m-commerce pioneer in the region, and a number of initiatives between mobile network operators, banks and credit card companies have targeted the large number of people without bank accounts.

Brazil has one of the largest broadband markets in Latin America, though broadband penetration is only slightly above the regional average. The pay TV market is the largest in Latin America, with considerable room for further growth which has encouraged investors such as AT&T to gain a foothold in the market.

This report profiles the major and some minor fixed-line operators, and provides an overview of the broadband market, accompanied by updated statistics, market analyses, and forecasts to 2020. It also reviews the mobile voice and data markets, profiles the mobile operators and assesses their strategies as they endeavour to exploit opportunities offered by the fast developing mobile broadband sector.

Key developments:

  • Telebras aiming to use the SDGC satellite for broadband services from 2017;
  • New submarine cables linking Brazil with Europe, Angola and the US;
  • Government studies Northern Connection cable network across the Amazon basin;
  • Telecom revenue reaches R$234 billion;
  • New Antenna Law aimed at extending network footprints and improving mobile services;
  • Auction for the 700MHz band leaves two blocks unsold;
  • Telefónica rebrands newly acquired GVT as Vivo;
  • Embratel and Net Serviços merge with Claro Brasil;

Report update includes regulator's market data to April 2015; operator data to Q1 2015; recent market developments.

Companies mentioned in this report:

Vivo (Telefônica Brasil), TIM Brasil, Oi, Embratel, Net Serviços, GVT, CTBC/Algar Telecom; Global Crossing, Star One, TelesatBrasil, Hispamar, Telebrás, Claro, TIM Brasil, Intelig, Sercomtel, Nextel Brasil, AlgarUnicel/Aeiou, Porto Seguro, Datora Telecom, Virgin Mobile, Sisteer, Terapar, Universo Online (UOL), Neovia, Eletropaulo Telecom, Copel, BuscaPé, Sky Brasil, Claro TV, Vivo TV, Oi TV.

Table of Contents

1. Key Statistics

  • 1.1. Country overview
    • 1.1.1. Economic background

2. Telecommunications Market

  • 2.1. Overview of Brazil's telecom market
  • 2.2. Market analysis
  • 2.3. Market outlook - short to long term

3. Regulatory Environment

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

4. Fixed Network Operators

  • 4.1. Overview of fixed network market
  • 4.2. Oi (Telemar)
    • 4.2.1. Shareholders
    • 4.2.2. Acquisition of Brasil Telecom
    • 4.2.3. Merger with Portugal Telecom
  • 4.3. Vivo (Telefônica Brasil)
    • 4.3.1. Acquisition of TVA
    • 4.3.2. Telesp-Vivo merger
  • 4.4. Embratel
    • 4.4.1. Shareholders
    • 4.4.2. Acquisition of Vésper
    • 4.4.3. Acquisition of Net
  • 4.5. Global Village Telecom (GVT)
    • 4.5.1. Shareholders
    • 4.5.2. Sale to Telefónica
  • 4.6. TIM Brasil
    • 4.6.1. TIM Soluções Corporativas (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. Forecasts - fixed-line market 2015; 2017; 2020
    • 5.1.3. 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. Amazon cable
    • 5.3.3. Very small aperture terminal (VSAT) networks
    • 5.3.4. Smart meters/smart grids
  • 5.4. Wholesale
  • 5.5. Smart infrastructure

6. Broadband Market

  • 6.1. Overview
    • 6.1.1. Broadband statistics
  • 6.2. Forecasts - fixed broadband market 2015; 2017; 2020
    • 6.2.1. Scenario 1 - higher broadband growth
    • 6.2.2. Scenario 2 - lower broadband growth
    • 6.2.3. Broadband market analysis
    • 6.2.4. Digital inclusion and GESAC
  • 6.3. National broadband plan
    • 6.3.1. Inception
    • 6.3.2. Network
    • 6.3.3. Goals and realisations
    • 6.3.4. Major participating operators
    • 6.3.5. Price and speed
  • 6.4. Brazil's ISP market
    • 6.4.1. Overview
    • 6.4.2. Universo Online (UOL)
  • 6.5. Broadband network operators
    • 6.5.1. Market share statistics
    • 6.5.2. Oi Velox
    • 6.5.3. Net Vírtua
    • 6.5.4. Vivo Speedy
    • 6.5.5. Power GVT
    • 6.5.6. TIM Brasil
  • 6.6. Cable modems
  • 6.7. Asymmetrical Digital Subscriber Line (ADSL)
  • 6.8. Fibre-to-the-Premises (FttP) networks
  • 6.9. Broadband Powerline (BPL)
  • 6.10. Fixed wireless broadband
    • 6.10.1. WiFi
    • 6.10.2. WiMAX
    • 6.10.3. TDD-LTE
  • 6.11. Media convergence
    • 6.11.1. Overview of media convergence
    • 6.11.2. Broadband TV (IPTV)

7. Digital Economy

  • 7.1. E-commerce
  • 7.2. S-commerce
  • 7.3. E-government
  • 7.4. E-health
  • 7.5. E-learning
  • 7.6. Online games

8. Digital Media

  • 8.1. Social Media Overview
  • 8.2. Broadcasting
    • 8.2.1. Pay TV overview
    • 8.2.2. Regulatory issues
    • 8.2.3. Pay TV operators
    • 8.2.4. Cable TV
    • 8.2.5. IPTV
    • 8.2.6. Multichannel multipoint distribution systems (MMDS)
    • 8.2.7. Satellite-based digital pay TV developments
    • 8.2.8. Digital Terrestrial TV (DTTV)

9. Mobile Communications

  • 9.1. Overview of Brazil's mobile market
  • 9.2. Mobile statistics
    • 9.2.1. General statistics
    • 9.2.2. Mobile voice services
    • 9.2.3. Average Revenue Per User (ARPU)
    • 9.2.4. Mobile broadband/data
    • 9.2.5. Forecasts - mobile market 2015; 2017; 2020
  • 9.3. Regulatory issues
    • 9.3.1. Mobile spectrum allocation and concession areas
    • 9.3.2. Number Portability (NP)
    • 9.3.3. Mobile Termination Rates (MTRs)
    • 9.3.4. Network sharing
    • 9.3.5. Tower infrastructure
    • 9.3.6. Infrastructure sharing
  • 9.4. Mobile infrastructure
    • 9.4.1. Mobile technologies
    • 9.4.2. Analogue networks
    • 9.4.3. Digital networks
    • 9.4.4. Other infrastructure developments
    • 9.4.5. Machine-to-Machine (M2M)
  • 9.5. Mobile content and applications
    • 9.5.1. M-commerce
    • 9.5.2. M-banking
    • 9.5.3. Mobile games
  • 9.6. Mobile handsets
  • 9.7. Mobile Operators
    • 9.7.1. Mobile Network Operators (MNOs)
    • 9.7.2. Mobile Virtual Network Operators (MVNO)

List of Tables:

  • Table 1 - Country statistics - 2015 (e)
  • Table 2 - Telephone network statistics - 2015 (e)
  • Table 3 - Internet user statistics - 2015 (e)
  • Table 4 - Broadband statistics - 2015 (e)
  • Table 5 - Mobile statistics - 2015 (e)
  • Table 6 - National telecommunications authority
  • Table 7 - Evolution of GDP in Brazil - 2000 - 2015
  • Table 8 - Telecommunications revenue - 2000 - 2015
  • Table 9 - Proportion of telecom revenue by segment - 2000 - 2014
  • Table 10 - Telecom revenue by segment - 2005 - 2014
  • Table 11 - Telecommunications investment - 2000 - 2015
  • Table 12 - Telecom investment by segment - 2009 - 2014
  • Table 13 - Proportion of telecom investment by segment - 2000 - 2014
  • Table 14 - Fixed lines in service - operators' market share - 2006 - 2015
  • Table 15 - Oi - fixed lines in service - 1999 - 2015
  • Table 16 - Vivo - fixed lines in service - 1999 - 2015
  • Table 17 - Embratel - fixed lines in service - 2006 - 2015
  • Table 18 - Embratel - fixed-line revenue - 2013 - 2015
  • Table 19 - Vivo (GVT) financial data - 2012 - 2014
  • Table 20 - Vivo (GVT) revenue by service - 2012 - 2013
  • Table 21 - Vivo (GVT) - fixed lines in service - 2006 - 2015
  • Table 22 - TIM Brasil - fixed lines in service - 2012 - 2015
  • Table 23 - Algar Telecom - fixed lines in service - 2012 - 2015
  • Table 24 - Historic - Fixed lines in service and teledensity - 1995 - 2004
  • Table 25 - Fixed lines in service and teledensity - 2005 - 2015
  • Table 26 - Forecast fixed lines -- 2015; 2017; 2020
  • Table 27 - Public payphones - 1996 - 2014
  • Table 28 - Historic - Internet users and penetration -1998 - 2004
  • Table 29 - Internet users and penetration -2005 - 2015
  • Table 30 - Fixed broadband subscribers and penetration - 2001 - 2015
  • Table 31 - Internet access market share by platform - 2005 - 2015
  • Table 32 - Forecast broadband subscribers - higher growth scenario - 2015; 2017, 2020
  • Table 33 - Forecast broadband subscribers - lower growth scenario - 2015; 2017; 2020
  • Table 34 - Average broadband access speed (download) - 2008 - 2014
  • Table 35 - Broadband operators' market share - 2003 - 2015
  • Table 36 - Oi - broadband subscribers - 2001 - 2015
  • Table 37 - Net - broadband subscribers - 2001 - 2015
  • Table 38 - Vivo - broadband subscribers - 2001 - 2015
  • Table 39 - GVT - broadband subscribers - 2004 - 2015
  • Table 40 - Cable modem subscribers and penetration - 2001 - 2015
  • Table 41 - ADSL subscribers and penetration - 2001 - 2015
  • Table 42 - Telefónica/Vivo FttP homes passed and connected - 2008 - 2014
  • Table 43 - Fibre broadband subscribers - 2014 - 2015
  • Table 44 - WiFi hotspots in service - 2013 - 2015
  • Table 45 - Algar Telecom TV and broadband subscribers - 2009 - 2015
  • Table 46 - Brazil - B2C e-commerce spending - 2005 - 2013
  • Table 47 - Historic - Pay TV subscribers and penetration - 1998 - 2004
  • Table 48 - Pay TV subscribers and penetration - 2005 - 2015
  • Table 49 - Historic - Pay TV market share by technology - 1998 - 2004
  • Table 50 - Pay TV market share by technology - 2005 - 2015
  • Table 51 - Pay TV market revenue - 2005 - 2015
  • Table 52 - Pay TV operators - market share - 2000 - 2015
  • Table 53 - Net Serviços - cable TV subscribers - 2000 - 2015
  • Table 54 - Sky Brazil TV subscribers - 2010 - 2015
  • Table 55 - Claro TV subscribers - 2010 - 2015
  • Table 56 - Oi TV subscribers - 2010 - 2015
  • Table 57 - Vivo TV subscribers - 2012 - 2015
  • Table 58 - Vivo subscribers - 2011 - 2015
  • Table 59 - Algar Telecom pay TV subscribers - 2011 - 2015
  • Table 60 - Historic - Cable TV subscribers and penetration - 1998 - 2004
  • Table 61 - Cable TV subscribers and penetration - 2005 - 2015
  • Table 62 - Historic - MMDS subscribers and penetration - 1998 - 2004
  • Table 63 - MMDS subscribers and penetration - 2005 - 2015
  • Table 64 - Historic - DTH subscribers and penetration - 1998 - 2004
  • Table 65 - DTH subscribers and penetration - 2005 - 2015
  • Table 66 - Historic - Mobile subscribers and penetration rate - 1997 - 2004
  • Table 67 - Mobile subscribers and penetration rate - 2005- 2015
  • Table 68 - Mobile prepaid/postpaid ratio - 2003 - 2015
  • Table 69 - Evolution of mobile ARPU in Brazil - major operators - 2009 - 2015
  • Table 70 - 3G mobile broadband subscribers and penetration - 2008 - 2015
  • Table 71 - Average mobile broadband speed - 2008 - 2014
  • Table 72 - Mobile broadband accesses by operator - 2013 - 2015
  • Table 73 - Forecast mobile subscribers - higher growth scenario - 2015; 2020
  • Table 74 - Forecast mobile subscribers - lower growth scenario - 2015; 2020
  • Table 75 - Mobile market share by technology - 2004 - 2013
  • Table 76 - 3G municipal coverage - 2008 - 2015
  • Table 77 - 3G subscribers and penetration - 2008 - 2015
  • Table 78 - LTE subscribers - 2013 - 2015
  • Table 79 - LTE subscribers by operator - 2013 - 2015
  • Table 80 - LTE subscriber market share by operator - 2014 - 2015
  • Table 81 - M2M terminals - 2008 - 2015
  • Table 82 - Handset and smartphones sales - 2011 - 2015
  • Table 83 - Domestic mobile handset production - 2003 - 2014
  • Table 84 - Mobile operators' market share - 2002 - 2015
  • Table 85 - 3G/mobile broadband market share by operator - 2009 - 2015
  • Table 86 - Vivo mobile revenue (R$) - 2010 - 2014
  • Table 87 - Vivo financial data (€) - 2013 - 2015
  • Table 88 - Vivo mobile subscribers - 2002 - 2015
  • Table 89 - Vivo/Telemig- mobile subscribers (historic) - 2002 - 2007
  • Table 90 - TIM Brasil - mobile financial data - 2010 - 2015
  • Table 91 - TIM Brasil - mobile subscribers - 2002 - 2015
  • Table 92 - Claro mobile revenue - 2010 - 2015
  • Table 93 - Claro - mobile subscribers - 2002 - 2015
  • Table 94 - Oi mobile revenue by sector - 2012 - 2015
  • Table 95 - Oi - mobile subscribers - 2002 - 2015
  • Table 96 - Oi/Amazônia/BrT - mobile subscribers -2002 - 2008 (historic)
  • Table 97 - NII Holdings mobile revenue (R$) - 2012 - 2014
  • Table 98 - Nextel Brazil revenue (US$) - 2010 - 2015
  • Table 99 - Nextel Brazil - mobile subscribers - 2002 - 2015
  • Table 100 - Algar Telecom mobile revenue - 2009 - 2014
  • Table 101 - Algar Telecom mobile subscribers - 2003 - 2015
  • Table 102 - Sercomtel - mobile subscribers - 2003 - 2015
  • Table 103 - MVNO subscribers - 2012 - 2014
  • Table 104 - Port Seguro mobile subscribers - 2012 - 2014

List of Charts:

  • Chart 1 - Evolution of telecom revenue in Brazil - 2003 - 2015
  • Chart 2 - Telecom revenue by segment - 2005 - 2015
  • Chart 3 - Evolution of fixed lines in service - 2005 - 2015
  • Chart 4 - Internet users and penetration -2005 - 2015
  • Chart 5 - Fixed broadband subscribers and penetration - 2001 - 2015
  • Chart 6 - Broadband market share at a glance - 2007 - 2015
  • Chart 7 - Cable modem subscribers and penetration - 2001 - 2015
  • Chart 8 - ADSL subscribers and penetration - 2001 - 2015
  • Chart 9 - Evolution of pay TV in Brazil - 2005 - 2015
  • Chart 10 - Pay TV technologies at a glance - 2005 - 2015
  • Chart 11 - Evolution of Brazil's mobile subscriber base - 2000 - 2015
  • Chart 12 - Evolution of mobile ARPU in Brazil - major operators - 2009 - 2015
  • Chart 13 - Mobile broadband market share by operator - 2009 - 2015

List of Exhibits:

  • Exhibit 1 - Map of Brazil
  • Exhibit 2 - Regions and states of Brazil
  • Exhibit 3 - Oi (Telemar) group at a glance
  • Exhibit 4 - Oi - company history
  • Exhibit 5 - Telefônica Brasil (trading as Vivo) at a glance
  • Exhibit 6 - Vivo - company history
  • Exhibit 7 - Embratel at a glance
  • Exhibit 8 - Embratel - company history
  • Exhibit 9 - GVT at a glance
  • Exhibit 10 - GVT - company history
  • Exhibit 11 - Atlantic Cable System - planned
  • Exhibit 12 - Geostationary satellites operating in Brazil
  • Exhibit 13 - Net Serviços de Comunicação at a glance
  • Exhibit 14 - TVA
  • Exhibit 15 - Subdivision of Brazil into regions and areas
  • Exhibit 16 - H-band for 3G services - lots, areas, and spectrum winners
  • Exhibit 17 - Bands for 4G services - blocks, winners, and price/MHz/population
  • Exhibit 18 - LTE TDD deployments
  • Exhibit 19 - LTE deployments
  • Exhibit 20 - 700MHz auction results - 2014
  • Exhibit 21 - 3G network launches by operator - 2007 - 2008
  • Exhibit 22 - Subdivision of Brazil into regions and areas for mobile licensing
  • Exhibit 23 - Telefônica Brasil (trading as Vivo) at a glance
  • Exhibit 24 - Vivo - concessions
  • Exhibit 25 - The uneasy marriage between Telefónica and Portugal Telecom (historic)
  • Exhibit 26 - TIM Brasil at a glance
  • Exhibit 27 - TIM Brasil - concession awards for frequency bands A, B, D, E
  • Exhibit 28 - Claro Brasil at a glance
  • Exhibit 29 - Claro - concessions
  • Exhibit 30 - Oi (TNL PCS) at a glance
  • Exhibit 31 - Oi - concession awards for frequency bands A, D, E, M
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