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Brazil - Telecoms, IP Networks and Digital Media

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.


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2015 (e)
    • Table Telephone network statistics - 2015 (e)
    • Table Internet user statistics - 2015 (e)
    • Table Broadband statistics - 2015 (e)
    • Table Mobile statistics - 2015 (e)
    • Table National telecommunications authority
    • COUNTRY OVERVIEW
      • Economic background
        • Table Evolution of GDP in Brazil - 2000 - 2015
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF BRAZIL'S TELECOM MARKET
    • MARKET ANALYSIS
      • Table Telecommunications revenue - 2000 - 2015
      • Table Proportion of telecom revenue by segment - 2000 - 2014
      • Table Telecom revenue by segment - 2005 - 2014
      • Table Telecommunications investment - 2000 - 2015
      • Table Telecom investment by segment - 2009 - 2014
      • Table Proportion of telecom investment by segment - 2000 - 2014
    • MARKET OUTLOOK - SHORT TO LONG TERM
  • REGULATORY ENVIRONMENT
    • REGULATORY DEVELOPMENTS
    • GENERAL PLAN FOR UPDATING TELECOM REGULATIONS (PGR)
    • REGULATORY AUTHORITY
      • Anatel
    • PRIVATISATION OF TELEBRÁS
    • TELECOM SECTOR LIBERALISATION IN BRAZIL
    • GENERAL COMPETITION PLAN
    • CONCESSIONS AND AUTHORISATIONS
    • MIRROR COMPANIES
      • Table Regions and states of Brazil
    • UNIVERSAL SERVICE GOALS
    • GOVERNMENT TELECOM FUNDS (FUST, FISTEL, AND FUNTTEL)
    • FOREIGN INVESTMENT
    • NUMBER PORTABILITY
    • ACCESS
    • INTERCONNECTION
    • FIXED-LINE CONTRACT RENEWAL - 2006
    • FIXED-LINE CONTRACT RENEWAL - 2011
    • MOBILE CONSUMER RIGHTS
    • TAXES AND TAX EXEMPTIONS
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF FIXED NETWORK MARKET
      • Table Fixed lines in service - operators' market share - 2006 - 2015
    • OI (TELEMAR)
      • Table Oi (Telemar) group at a glance
      • Table Oi - fixed lines in service - 1999 - 2015
      • Shareholders
      • Acquisition of Brasil Telecom
      • Merger with Portugal Telecom
    • VIVO (TELEFÔNICA BRASIL)
      • Table Telefônica Brasil (trading as Vivo) at a glance
      • Table Vivo - fixed lines in service - 1999 - 2015
      • Acquisition of TVA
      • Telesp-Vivo merger
    • EMBRATEL
      • Table Embratel at a glance
      • Table Embratel - fixed lines in service - 2006 - 2015
      • Table Embratel - fixed-line revenue - 2013 - 2015
      • Shareholders
      • Acquisition of Vésper
      • Acquisition of Net
    • GLOBAL VILLAGE TELECOM (GVT)
      • Table GVT at a glance
      • Table Vivo (GVT) financial data - 2012 - 2014
      • Table Vivo (GVT) revenue by service - 2012 - 2013
      • Table Vivo (GVT) - fixed lines in service - 2006 - 2015
      • Shareholders
      • Sale to Telefónica
    • TIM BRASIL
      • Table TIM Brasil - fixed lines in service - 2012 - 2015
      • TIM Soluções Corporativas (Intelig Telecom)
    • CTBC/ALGAR TELECOM
      • Table Algar Telecom - fixed lines in service - 2012 - 2015
    • SERCOMTEL
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL TELECOM NETWORK
      • Fixed-line statistics
        • Table Historic - Fixed lines in service and teledensity - 1995 - 2004
        • Table Fixed lines in service and teledensity - 2005 - 2015
      • Forecasts - fixed-line market 2015; 2017; 2020
        • Table Forecast fixed lines -- 2015; 2017; 2020
      • Public payphones
        • Table Public payphones - 1996 - 2014
    • INTERNATIONAL INFRASTRUCTURE
      • Submarine cable networks
      • Satellite networks
        • Table Geostationary satellites operating in Brazil
    • INFRASTRUCTURE DEVELOPMENTS
      • IP and voice over internet protocol (VoIP)
      • Amazon cable
      • Very small aperture terminal (VSAT) networks
      • Smart meters/smart grids
    • WHOLESALE
    • SMART INFRASTRUCTURE
  • BROADBAND MARKET
    • OVERVIEW
      • Broadband statistics
        • Table Historic - Internet users and penetration -1998 - 2004
        • Table Internet users and penetration -2005 - 2015
        • Table Fixed broadband subscribers and penetration - 2001 - 2015
        • Table Internet access market share by platform - 2005 - 2015
    • FORECASTS - FIXED BROADBAND MARKET 2015; 2017; 2020
      • higher broadband growth
        • Table Forecast broadband subscribers - higher growth scenario - 2015; 2017, 2020
      • lower broadband growth
        • Table Forecast broadband subscribers - lower growth scenario - 2015; 2017; 2020
      • Broadband market analysis
      • Digital inclusion and GESAC
    • NATIONAL BROADBAND PLAN
      • Inception
      • Network
      • Goals and realisations
      • Major participating operators
      • Price and speed
        • Table Average broadband access speed (download) - 2008 - 2014
    • BRAZIL'S ISP MARKET
      • Overview
      • Universo Online (UOL)
    • BROADBAND NETWORK OPERATORS
      • Market share statistics
        • Table Broadband operators' market share - 2003 - 2015
      • Oi Velox
        • Table Oi - broadband subscribers - 2001 - 2015
      • Net Vírtua
        • Table Net - broadband subscribers - 2001 - 2015
      • Vivo Speedy
        • Table Vivo - broadband subscribers - 2001 - 2015
      • Power GVT
        • Table GVT - broadband subscribers - 2004 - 2015
      • TIM Brasil
    • CABLE MODEMS
      • Table Cable modem subscribers and penetration - 2001 - 2015
    • ASYMMETRICAL DIGITAL SUBSCRIBER LINE (ADSL)
      • Table ADSL subscribers and penetration - 2001 - 2015
    • FIBRE-TO-THE-PREMISES (FTTP) NETWORKS
      • Table Telefónica/Vivo FttP homes passed and connected - 2008 - 2014
      • Table Fibre broadband subscribers - 2014 - 2015
    • BROADBAND POWERLINE (BPL)
    • FIXED WIRELESS BROADBAND
      • WiFi
        • Table WiFi hotspots in service - 2013 - 2015
      • WiMAX
      • TDD-LTE
    • MEDIA CONVERGENCE
      • Overview of media convergence
        • Table Algar Telecom TV and broadband subscribers - 2009 - 2015
      • Broadband TV (IPTV)
  • DIGITAL ECONOMY
    • E-COMMERCE
      • Table Brazil - B2C e-commerce spending - 2005 - 2013
    • S-COMMERCE
    • E-GOVERNMENT
    • E-HEALTH
    • E-LEARNING
    • ONLINE GAMES
  • DIGITAL MEDIA
    • SOCIAL MEDIA OVERVIEW
    • BROADCASTING
      • Pay TV overview
        • Table Historic - Pay TV subscribers and penetration - 1998 - 2004
        • Table Pay TV subscribers and penetration - 2005 - 2015
        • Table Historic - Pay TV market share by technology - 1998 - 2004
        • Table Pay TV market share by technology - 2005 - 2015
        • Table Pay TV market revenue - 2005 - 2015
      • Regulatory issues
      • Pay TV operators
        • Table Pay TV operators - market share - 2000 - 2015
        • Table Net Serviços de Comunicaçao at a glance
        • Table Net Serviços - cable TV subscribers - 2000 - 2015
        • Table Sky Brazil TV subscribers - 2010 - 2015
        • Table Claro TV subscribers - 2010 - 2015
        • Table Oi TV subscribers - 2010 - 2015
        • Table Vivo TV subscribers - 2012 - 2015
        • Table Vivo subscribers - 2011 - 2015
        • Table Algar Telecom pay TV subscribers - 2011 - 2015
      • Cable TV
        • Table Historic - Cable TV subscribers and penetration - 1998 - 2004
        • Table Cable TV subscribers and penetration - 2005 - 2015
      • IPTV
      • Multichannel multipoint distribution systems (MMDS)
        • Table Historic - MMDS subscribers and penetration - 1998 - 2004
        • Table MMDS subscribers and penetration - 2005 - 2015
      • Satellite-based digital pay TV developments
        • Table Historic - DTH subscribers and penetration - 1998 - 2004
        • Table DTH subscribers and penetration - 2005 - 2015
      • Digital Terrestrial TV (DTTV)
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF BRAZIL'S MOBILE MARKET
    • MOBILE STATISTICS
      • General statistics
        • Table Historic - Mobile subscribers and penetration rate - 1997 - 2004
        • Table Mobile subscribers and penetration rate - 2005- 2015
      • Mobile voice services
        • Table Mobile prepaid/postpaid ratio - 2003 - 2015
      • Average Revenue Per User (ARPU)
        • Table Evolution of mobile ARPU in Brazil - major operators - 2009 - 2015
      • Mobile broadband/data
        • Table 3G mobile broadband subscribers and penetration - 2008 - 2015
        • Table Average mobile broadband speed - 2008 - 2014
        • Table Mobile broadband accesses by operator - 2013 - 2015
      • Forecasts - mobile market 2015; 2017; 2020
        • Table Forecast mobile subscribers - higher growth scenario - 2015; 2020
        • Table Forecast mobile subscribers - lower growth scenario - 2015; 2020
    • REGULATORY ISSUES
      • Mobile spectrum allocation and concession areas
        • Table Subdivision of Brazil into regions and areas
        • Table H-band for 3G services - lots, areas, and spectrum winners
        • Table Bands for 4G services - blocks, winners, and price/MHz/population
        • Table LTE TDD deployments
        • Table LTE deployments
        • Table 700MHz auction results - 2014
      • Number Portability (NP)
      • Mobile Termination Rates (MTRs)
      • Network sharing
      • Tower infrastructure
      • Infrastructure sharing
    • MOBILE INFRASTRUCTURE
      • Mobile technologies
        • Table Mobile market share by technology - 2004 - 2013
      • Analogue networks
      • Digital networks
        • Table 3G network launches by operator - 2007 - 2008
        • Table 3G municipal coverage - 2008 - 2015
        • Table 3G subscribers and penetration - 2008 - 2015
        • Table LTE subscribers - 2013 - 2015
        • Table LTE subscribers by operator - 2013 - 2015
        • Table LTE subscriber market share by operator - 2014 - 2015
      • Other infrastructure developments
      • Machine-to-Machine (M2M)
        • Table M2M terminals - 2008 - 2015
    • MOBILE CONTENT AND APPLICATIONS
      • M-commerce
      • M-banking
      • Mobile games
    • MOBILE HANDSETS
      • Table Handset and smartphones sales - 2011 - 2015
      • Table Domestic mobile handset production - 2003 - 2014
    • MOBILE OPERATORS
      • Mobile Network Operators (MNOs)
        • Table Mobile operators' market share - 2002 - 2015
        • Table 3G/mobile broadband market share by operator - 2009 - 2015
        • Table Subdivision of Brazil into regions and areas for mobile licensing
        • Table Telefônica Brasil (trading as Vivo) at a glance
        • Table Vivo mobile revenue (R$) - 2010 - 2014
        • Table Vivo financial data (€) - 2013 - 2015
        • Table Vivo mobile subscribers - 2002 - 2015
        • Table Vivo/Telemig- mobile subscribers (historic) - 2002 - 2007
        • Table Vivo - concessions
        • Table TIM Brasil at a glance
        • Table TIM Brasil - mobile financial data - 2010 - 2015
        • Table TIM Brasil - mobile subscribers - 2002 - 2015
        • Table TIM Brasil - concession awards for frequency bands A, B, D, E
        • Table Claro Brasil at a glance
        • Table Claro mobile revenue - 2010 - 2015
        • Table Claro - mobile subscribers - 2002 - 2015
        • Table Claro - concessions
        • Table Oi (TNL PCS) at a glance
        • Table Oi mobile revenue by sector - 2012 - 2015
        • Table Oi - mobile subscribers - 2002 - 2015
        • Table Oi/Amazônia/BrT - mobile subscribers -2002 - 2008 (historic)
        • Table Oi - concession awards for frequency bands A, D, E, M
        • Table NII Holdings mobile revenue (R$) - 2012 - 2014
        • Table Nextel Brazil revenue (US$) - 2010 - 2015
        • Table Nextel Brazil - mobile subscribers - 2002 - 2015
        • Table Algar Telecom mobile revenue - 2009 - 2014
        • Table Algar Telecom mobile subscribers - 2003 - 2015
        • Table Sercomtel - mobile subscribers - 2003 - 2015
      • Mobile Virtual Network Operators (MVNO)
        • Table MVNO subscribers - 2012 - 2014
        • Table Port Seguro mobile subscribers - 2012 - 2014

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