Brazil - Telecommunication Services: An oligopolistic and price conscious market (Strategy, Performance and Risk Analysis)
The Brazilian telecommunication market is oligopolistic by nature, dominated by a few major players, the leading of which is Vivo. Along with information on the leading players of the market, this report also offers readers the latest data on current market trends in Brazil, deals and innovations within the telecom sector and how government initiatives may affect the market in the long run, among much more. The detailed information and data is easily distinguished for the readers ease, as the reports are written in a clear and concise style.
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Vivo’s main competitor Oi files for bankruptcy
The fixed-line segment is led by Vivo and Oi. Subscriptions for Oi recorded a review-period CAGR of -7.2%, while Vivo’s subscriber base registered a review-period CAGR of 6.8%. During the second quarter of 2016, Oi filed for bankruptcy protection as a result of debts in excess of US$65 billion. Other key competitors include Claro Brazil, Oi, TIM Brazil, Algar.Demand for data will help to upscale
The share of HSPA - 3G, which dominated the market in 2014, is set to decline. Due to an increase in subscriptions and a demand for data-intensive apps, LTE, a version of 4G, is gaining wider acceptance. LTE will post a forecast-period CAGR of 25.0%. Companies are offering competitive internet combo packages, combining 4G and voice services for postpaid costumers to attract more subscribers.
Volatile economy led mobile subscription to decline
Brazil’s economy is in recession, a situation that has resulted in a reduction in income levels. A deceleration in the volume of middle-class households and associated spending power is forcing telecom providers to run their services at low-margins, despite an increase in the demand for faster internet speeds, smartphones and packaged services. The recession has damaged consumer’s confidence, making many more price sensitive.
Mobile subscriptions declined from 283.31 million in 2014 to 259.27 million in 2015, settling at 246.13 million in 2016. However, it is expected to increase, recording a forecast-period CAGR of 0.3% to reach 250.3 million in 2021.