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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.

This report profiles Brazil's mobile operators and the mobile sector, including updated statistics and market analyses. It reviews the fixed-line telecom market, infrastructure and regulatory environment, as well as the pay TV, internet and broadband sectors, providing scenario forecasts to 2020.

Key developments:

Telefônica Brasil consolidates its fixed and mobile services under the Vivo brand; Oi's merger with Portugal Telecom approved by the Brazilian and Portuguese antitrust authorities; Vivendi suspends the sale of GVT; ACSea submarine cable linking Brazil and Europe contracted by Telebrás and IslaLink; Seabras-1 cable to provide direct route between the US and Brazil in 2015; satellites Star One C4 and Star One C5 to be launched in the second half of 2014; Claro launches LTE network; TIM Brasil signs LTE roaming with TIM (Italia); NET Serviços launches a 500Mb/s service for the residential market; Vivo and Oi deploy LTE networks; Datora rebrands as Vodafone Brazil following M2M partnership deal; regulator assigns SMP on five operators in the fixed-line sector and four operators in the mobile sector; regulator proposes assigning unallocated spectrum in the 2.5GHz to 2.69GHz band to smaller ISPs; mobile broadband accounting for 42% of all broadband accesses; report includes the regulator's market data to February 2014; operator data to Q4 2013; market developments to April 2014.

Companies covered in this report include:

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

Executive Summary

FIFA World Cup stimulates fibre network builds

With the 2014 FIFA World Cup and 2016 Olympic Games being held in Brazil, operators have been rushing to extend LTE and FttP networks. These undertakings are supported by legislation which offers tax breaks for investments in networks supporting fixed or mobile broadband, as well as by the General Competition Plan regulating wholesale services and infrastructure sharing. This will be good news for customers into 2016, since Brazil, though the largest broadband market in the region, has relatively penetration.

International infrastructure is also developing well, with the construction of new submarine cables and a regional landline cable being built under the auspices of the Union of South American Nations. These will considerably increase international bandwidth in coming years.

The fixed-line sector is dominated by Telefónica, América Móvil, Oi (being merged with Portugal Telecom), and GVT (owned by Vivendi). Telefónica Brasil has integrated its fixed-line and mobile services under a single brand, while América Móvil has also merged its Net Serviços and Embratel divisions and has started to integrate its fixed and mobile services under the brand name Claro.

The pay TV market has seen sustained growth since 1996. The country has the largest pay TV subscriber base in Latin America, though pay TV penetration is lower than several other local markets. As a result, there is ample room for further growth, which has encouraged investors to gain a foothold in the market. A favourable pay TV law of 2011 removed restrictions on foreign investment and on telcos being able to provide pay TV services.

Brazil is home to more than one third of all mobile users in Latin America and the Caribbean. Mobile penetration is upward of 132% and growing by about 7% annually. The four MNOs Vivo, Claro, TIM Brasil, and Oi are developing 4G services on their 2.5GHz concessions, encouraged by the government keen to see seamless connectivity during the FIFA World Cup. These networks will see far larger footprints and capabilities following the auction of spectrum in the 700MHz band in August 2014, though some spectrum will not be fully released by broadcasters until 2016. The volume of smartphones, in which Brazil has a large manufacturing base of its own, is expected to soar in coming years, supported by a large population, tax breaks on smartphone sales and the tumbling prices of devices. This will have important knock-on effects for the m-commerce sector.

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

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. Mirror companies
  • 3.6. Telecom sector liberalisation in Brazil
  • 3.7. General Competition Plan
  • 3.8. Concessions and authorisations
  • 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. Oi - outlook
    • 4.2.4. 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. GVT
    • 4.5.1. Shareholders
  • 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
    • 5.3.3. Smart meters/smart grids
  • 5.4. Wholesale

6. Broadband Market

  • 6.1. Overview
    • 6.1.1. Broadband statistics
    • 6.1.2. Broadband market analysis
    • 6.1.3. Digital inclusion and GESAC
  • 6.2. National broadband plan
    • 6.2.1. Inception
    • 6.2.2. Network
    • 6.2.3. Goals and realisations
    • 6.2.4. Major participating operators
    • 6.2.5. Price and speed
  • 6.3. Brazil's ISP market
    • 6.3.1. Overview
    • 6.3.2. Universo Online (UOL)
  • 6.4. Broadband network operators
    • 6.4.1. Market share statistics
    • 6.4.2. Oi Velox
    • 6.4.3. Net Vírtua
    • 6.4.4. Vivo Speedy
    • 6.4.5. Power GVT
    • 6.4.6. TIM Brasil
  • 6.5. Cable modems
  • 6.6. Asymmetrical Digital Subscriber Line (ADSL)
  • 6.7. Fibre-to-the-Premise (FttP) networks
  • 6.8. Broadband Powerline (BPL)
  • 6.9. Fixed wireless broadband
    • 6.9.1. WiFi
    • 6.9.2. WiMAX
    • 6.9.3. TDD-LTE
  • 6.10. Media convergence
    • 6.10.1. Overview of media convergence
    • 6.10.2. Broadband TV (IPTV)

7. Digital Economy / Digital Media

  • 7.1. Digital economy
    • 7.1.1. E-commerce
    • 7.1.2. S-commerce
    • 7.1.3. E-government
    • 7.1.4. E-health
    • 7.1.5. E-learning
    • 7.1.6. Online games
  • 7.2. Digital media
  • 7.3. Pay TV overview
    • 7.3.1. Pay TV statistics
  • 7.4. Regulatory issues
    • 7.4.1. Pay TV law
    • 7.4.2. Incumbent fixed-line telcos in the pay TV sector
    • 7.4.3. Foreign ownership regulations
  • 7.5. Pay TV operators
    • 7.5.1. Net Serviços de Comunicação
    • 7.5.2. Sky Brasil
    • 7.5.3. Claro TV
    • 7.5.4. Oi TV
    • 7.5.5. Vivo TV
    • 7.5.6. GVT TV
    • 7.5.7. CTBC TV
  • 7.6. Cable TV
  • 7.7. Multichannel multipoint distribution systems (MMDS)
  • 7.8. Satellite-based digital pay TV developments
  • 7.9. Digital terrestrial TV (DTTV)

8. Mobile Communications

  • 8.1. Overview of Brazil's mobile market
    • 8.1.1. Average revenue per user (ARPU)
  • 8.2. Regulatory issues
    • 8.2.1. Number Portability (NP)
    • 8.2.2. Mobile Termination Rates (MTRs)
    • 8.2.3. Network sharing
    • 8.2.4. Mobile spectrum allocation and concession areas
    • 8.2.5. Mobile Virtual Network Operators (MVNO)
  • 8.3. Mobile technologies
    • 8.3.1. Mobile generations
    • 8.3.2. Mobile handsets/smartphones
    • 8.3.3. Femtocells
  • 8.4. Mobile voice services
    • 8.4.1. Prepaid cards
  • 8.5. Mobile messaging
    • 8.5.1. Short message service (SMS)
  • 8.6. Mobile broadband
  • 8.7. Mobile content and applications
    • 8.7.1. M-banking
    • 8.7.2. M-commerce
    • 8.7.3. Machine-to-Machine (M2M)
    • 8.7.4. Mobile games
  • 8.8. Mobile satellite
  • 8.9. Mobile Network Operators (MNOS) Overview
    • 8.9.1. Vivo (Telefônica Brasil)
    • 8.9.2. TIM Brasil
    • 8.9.3. Claro
    • 8.9.4. Oi
    • 8.9.5. Nextel Brasil
    • 8.9.6. CTBC/Algar Telecom
    • 8.9.7. Sercomtel Celular
    • 8.9.8. Unicel/Aeiou (defunct)
  • 8.10. Mobile Virtual Network Operators (MVNO) Overview
    • 8.10.1. Porto Seguro
    • 8.10.2. Vodafone Brazil (Datora)
    • 8.10.3. Virgin Mobile
    • 8.10.4. Correios

9. Forecasts

  • 9.1. Forecasts - fixed-line market 2015; 2020
    • 9.1.1. Scenario 1 - higher fixed line growth
    • 9.1.2. Scenario 2 - lower fixed-line growth
  • 9.2. Forecasts - fixed broadband market 2015; 2020
    • 9.2.1. Scenario 1 - higher broadband growth
    • 9.2.2. Scenario 2 - lower broadband growth
  • 9.3. Forecasts - mobile market 2015; 2020
    • 9.3.1. Scenario 1 - higher mobile market growth
    • 9.3.2. Scenario 2 - lower mobile market growth
    • 9.3.3. Notes on scenario forecasts

List of Tables:

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

List of Charts:

  • Chart 1 - Evolution of telecom revenue in Brazil - 2003 - 2014
  • Chart 2 - Telecom revenue by segment - 2005 - 2013
  • Chart 3 - Evolution of telecom investment in Brazil - 2003 - 2014
  • Chart 4 - Evolution of fixed lines in service - 2005 - 2015
  • Chart 5 - Internet users and penetration -2005 - 2015
  • Chart 6 - Fixed broadband subscribers and penetration - 2001 - 2015
  • Chart 7 - Broadband market share at a glance - 2007 - 2013
  • Chart 8 - Cable modem subscribers and penetration - 2001 - 2013
  • Chart 9 - ADSL subscribers and penetration - 2001 - 2013
  • Chart 10 - Evolution of pay TV in Brazil - 2005 - 2014
  • Chart 11 - Pay TV technologies at a glance - 2005 - 2014
  • Chart 12 - Pay TV operators - market share - 2000 - 2013
  • Chart 13 - Evolution of Brazil's mobile subscriber base - 2000 - 2015
  • Chart 14 - Mobile market share by technology - 2004 - 2013
  • Chart 15 - Mobile broadband market share by operator - 2009 - 2014

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 - Regions and States of Brazil
  • Exhibit 12 - Atlantic Cable System - planned
  • Exhibit 13 - Geostationary satellites operating in Brazil
  • Exhibit 14 - Regions and states of Brazil
  • Exhibit 15 - Net Serviços de Comunicação at a glance
  • Exhibit 16 - TVA
  • Exhibit 17 - Subdivision of Brazil into regions and areas
  • Exhibit 18 - H-band for 3G services - lots, areas, and spectrum winners
  • Exhibit 19 - Bands for 4G services - blocks, winners, and price/MHz/population
  • Exhibit 20 - LTE TDD deployments - February 2014
  • Exhibit 21 - LTE deployments - February 2014
  • Exhibit 22 - 3G network launches by operator - 2007 - 2008
  • Exhibit 23 - Subdivision of Brazil into regions and areas for mobile licensing
  • Exhibit 24 - Telefônica Brasil (trading as Vivo) at a glance
  • Exhibit 25 - Vivo - concessions
  • Exhibit 26 - The uneasy marriage between Telefónica and Portugal Telecom (historical)
  • Exhibit 27 - TIM Brasil at a glance
  • Exhibit 28 - TIM Brasil - concession awards for frequency bands A, B, D, E
  • Exhibit 29 - Claro Brasil at a glance
  • Exhibit 30 - Claro - concessions
  • Exhibit 31 - Oi (TNL PCS) at a glance
  • Exhibit 32 - Oi - concession awards for frequency bands A, D, E, M
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