Brazil revises telecom legislation to facilitate market

Sydney, Feb. 06, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Brasil outlines the major developments and key aspects in the telecoms markets.

Click here to access the report : https://www.budde.com.au/Research/Brazil-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

The Brazilian fixed-line market continues to suffer from consumers substituting services for mobile and VoIP solutions, the latter offerings being treated as value-add and thus not being regulated. As a result, VoIP services are offered by many providers.

The country is a key platform for a number of important submarine cables connecting to the USA, Central and South America, Africa and the Caribbean. Several new cable systems are due to come into service through to 2022, which will increase bandwidth and push down broadband prices for end-users. Investments are also ongoing into extensive terrestrial cables between Brazil, Argentina and Chile.

The principal telcos include Telefónica Brasil, operating fixed-line and mobile services under the Vivo brand, as well as América Móvil operating services under the Claro brand. Oi also offers a range of services though the company’s financial difficulties have prompted it to consider selling its mobile business in a bid to reduce debt.

Brazil has one of the largest mobile markets in Latin America. Changes to the dynamics of the market further into 2020 are expected if Oi successfully completes the sale of its mobile unit. The multi-spectrum auction intended to push the development of 5G was scheduled for March 2020 but has been delayed due to interference issues with satellite TV broadcasts. The auction will be the largest conducted in Brazil thus far, though given the underused capabilities of LTE it is unlikely that the licensees will provide commercial services before the end of 2021.

The country also has one of the largest broadband markets in Latin America, though broadband penetration is only slightly above the regional average, trailing behind Chile, Argentina, and Uruguay. Amendments to the licensing regime adopted in October 2019 also require that ISPs which have switched to authorisations invest money saved from lighter regulations be invested in the expansion of broadband services.

Claro is the leading broadband network operator, followed by Vivo and Oi. Oi and Vivo provide services via DSL while Claro is principally a cable broadband provider. The fibre segment has shown the strongest growth during the last two years, reflecting efforts among providers to extend their networks.

This report provides a review of Brazil’s telecom market, including infrastructure and the regulatory environment. It profiles the main fixed-line operators and provides relevant statistics and analyses. The report also covers the mobile voice and data segments, providing a range of statistics and analyses, as also subscriber forecasts. In addition, the report reviews the fixed and fixed-wireless broadband sectors, including an assessment of technologies and regulatory influences.

Key developments:

More operators launch FttP services;
EllaLink cable system becomes operational;
Legislative reform eases restrictions on telcos and opens up market for spectrum trading;
GlobeNet and Facebook start laying the 2,500km Malbec cable;
Seabras-1 cable to provide direct route between the US and Brazil;
Nextel Brazil sold to América Móvil;
Multi-spectrum 5G auction delayed due to interference issues;
Mercosur countries end international roaming charges;
Report update includes the regulator's market data updates to November 2019, operator data to Q3 2019, Telecom Maturity Index charts and analyses, recent market developments

Companies mentioned in this report:

Telefónica Brasil/Vivo, TIM Brasil, Claro, Oi, Nextel Brasil, CTBC/Algar Telecom, Sercomtel Celular, Vodafone Brazil/ARQIA, Embratel, GVT, Universo Online (UOL), Net Serviços de Comunicação, Intelig, Neovia, Eletropaulo Telecom, Copel, BuscaPé, Global Crossing, Star One, TelesatBrasil, Hispamar, Telebrás, Intelig

Henry Lancaster

February 2020

Table of Contents

Key statistics
Regional Latin America Market Comparison
- Telecom Maturity Index by tier
  - Market Leaders
  - Market Challengers
  - Market Emergents
  - South America Telecom Maturity Index
  - Central America Telecom Maturity Index
- TMI versus GDP
- Mobile and mobile broadband penetration
- Fixed and mobile broadband penetration
Country overview
Telecommunications market
- Historical overview
- Market analysis
Regulatory environment
- Regulatory developments
- General Plan for Updating Telecom Regulations (PGR)
- General Telecommunications Act
- Regulatory authority
- Fixed-line developments
  - Privatisation of Telebrás
  - Telecom sector liberalisation
  - General Competition Plan
  - Concessions and authorisations
  - Mirror companies
  - Universal service goals
  - Government telecom funds (Fust, Fistel, and Funttel)
  - Number Portability (NP)
  - Access
  - Interconnection
  - Fixed-line contract renewal – 2006
  - Fixed-line contract renewal – 2011
- Mobile network developments
  - Mobile spectrum allocation and concession areas
  - Mobile Number Portability (MNP)
  - Roaming
  - Mobile Termination Rates (MTRs)
  - Network sharing
  - Tower infrastructure
Mobile market
- Mobile statistics
- Mobile infrastructure
- Analogue networks
- Digital networks
  - 5G
  - 4G (LTE)
  - 3G
  - GSM
  - Other infrastructure developments
- Mobile data
  - SMS
- Mobile broadband
- Major mobile operators
  - Introduction
  - Vivo (Telefónica Brasil)
  - TIM Brasil
  - Claro Brazil
  - Oi
  - Nextel Brasil
  - CTBC/Algar Telecom
  - Sercomtel Celular
  - Unicel/Aeiou (defunct)
  - Mobile Virtual Network Operators (MVNOs)
- Mobile content and applications
  - Mobile economy
Fixed-line broadband market
- Introduction and statistical overview
- Broadband statistics
- Digital inclusion and GESAC
  - National broadband plan
  - Broadband for Schools
- Fixed-line broadband technologies
  - Hybrid Fibre Coax (HFC) networks
  - Digital Subscriber Line (DSL) networks
  - Fibre-to-the-Premises (FttP) networks
- Other fixed broadband services
  - Broadband Powerline (BPL)
  - Fixed wireless
Fixed network operators
- Overview of fixed network market
- Oi (Telemar)
- Vivo (Telefônica Brasil)
- Embratel (Claro)
- Global Village Telecom (GVT)
- TIM Brasil
- CTBC/Algar Telecom
- Sercomtel
Telecommunications infrastructure
- National telecom network
- Fixed-line statistics
- International infrastructure
  - Submarine cable networks
  - Satellite networks
- Infrastructure developments
  - Amazon cable
  - Very small aperture terminal (VSAT) networks
- Smart infrastructure
  - Smart meters/smart grids
- Data centres
Appendix – Historic data
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Brazil – 2019 (e)
Table 2 – Evolution of GDP in Brazil – 2000 – 2019
Table 3 – Change in telecommunications revenue and proportion to GDP – 2009 – 2019
Table 4 – Change in proportion of telecom revenue by segment – 2009 – 2019
Table 5 – Development of telecom revenue by segment – 2009 – 2019
Table 6 – Change in telecommunications investment and proportion of revenue – 2009 – 2019
Table 7 – Change in telecommunications investment by sector – 2009 – 2018
Table 8 – Change in proportion of telecom investment by segment – 2000 – 2018
Table 9 – Growth in the number of annual mobile numbers ported – 2008 – 2017
Table 10 – Decline in MTRs – 2016 – 2019
Table 11 – Growth in the number of mobile towers by operator – 2004 – 2019
Table 12 – Growth in the number of active mobile subscribers and penetration rate – 2009- 2024
Table 13 – Change in the prepaid/postpaid ratio of mobile connections – 2009 – 2019
Table 14 – Change in mobile voice and data ARPU – 2009 – 2019
Table 15 – Change in mobile market share of subscriptions by technology – 2004 – 2019
Table 16 – Growth in the number of LTE subscribers – 2013 – 2019
Table 17 – Development in the number of LTE subscribers by operator – 2013 – 2019
Table 18 – Change in LTE subscriber market share by operator – 2014 – 2019
Table 19 – 3G and LTE network population coverage – 2008 - 2019
Table 20 – Increase in the number of Vivo’s LTE subscribers and penetration – 2015 – 2019
Table 21 – Growth in Vivo’s mobile data traffic – 2015 – 2019
Table 22 – 3G municipal coverage – 2008 – 2019
Table 23 – Decline in the number of 3G subscribers and market share – 2008 – 2019
Table 24 – Decline in the number of GSM subscribers – 2007 – 2019
Table 25 – M2M terminals – 2008 – 2019
Table 26 – Growth in the number of mobile broadband subscribers and penetration – 2009 – 2024
Table 27 – Mobile broadband accesses by major operator – 2013 – 2018
Table 28 – Mobile broadband accesses by minor operator – 2013 – 2018
Table 29 – Increase in mobile broadband population coverage by major operator – 2013 – 2019
Table 30 – Mobile operators’ market share of subscribers – 2010 – 2019
Table 31 – Change in the number of Vivo’s mobile subscribers – 2010 – 2019
Table 32 – Development of Vivo’s mobile financial data (€) – 2013 – 2019
Table 33 – Development of TIM Brasil’s mobile financial data – 2009 – 2019
Table 34 – Development of TIM Brasil’s financial data (€) – 2014 – 2019
Table 35 – Change in the number of TIM Brasil’s mobile subscribers – 2009 – 2019
Table 36 – Development of Claro Brazil’s mobile revenue – 2010 – 2019
Table 37 – Decline in the number of Claro Brazil’s mobile subscribers – 2010 – 2019
Table 38 – Decline in Oi’s mobile revenue – 2012 – 2019
Table 39 – Decline in the number of Oi’s mobile subscribers – 2010 – 2019
Table 40 – Change in Oi’s mobile ARPU – 2016 – 2019
Table 41 – Nextel revenue ($) – 2010 – 2019
Table 42 – Nextel Brazil financial data (R$) – 2017 – 2019
Table 43 – Nextel Brazil ARPU – 2017 – 2019
Table 44 – Change in the number of Nextel Brazil’s mobile subscribers – 2009 – 2019
Table 45 – Nextel Brazil – mobile subscribers by type – 2015 – 2018
Table 46 – Algar Telecom voice revenue (mobile and fixed) – 2009 – 2019
Table 47 – Development of Algar Telecom’s financial data – 2015 – 2019
Table 48 – Growth in the number of Algar Telecom’s mobile subscribers – 2009 – 2019
Table 49 – Decline in the number of Sercomtel’s mobile subscribers – 2009 – 2019
Table 50 – MVNO subscribers – 2012 – 2019
Table 51 – Port Seguro mobile subscribers – 2012 – 2019
Table 52 – ARQIA mobile subscribers – 2013 – 2019
Table 53 – Growth in the number of fixed broadband subscribers and penetration – 2009 – 2024
Table 54 – Change in broadband market share of subscribers by main operator – 2009 – 2019
Table 55 – Schools connected via the broadband for Schools program – 2008 – 2018
Table 56 – Growth in the number of cable modem subscribers and penetration – 2009 – 2020
Table 57 – Decline in the number of DSL subscribers and penetration – 2009 – 2020
Table 58 – Growth in the number of Oi’s broadband subscribers – 2010 – 2019
Table 59 – Growth in the number of Claro’s fixed broadband subscribers – 2009 – 2019
Table 60 – Change in the number of Vivo’s broadband subscribers – 2009 – 2019
Table 61 – Growth in the number of TIM Brasil’s broadband subscribers – 2012 – 2019
Table 62 – Growth in the number of Algar Telecom’ broadband subscribers – 2009 – 2019
Table 63 – Growth in the number of Vivo’s FttP/C connections – 2014 – 2019
Table 64 – Growth in the number of fibre broadband subscribers – 2008 – 2020
Table 65 – Change in the number of satellite broadband connections – 2014 – 2021
Table 66 – Change in operator market share of fixed lines –– 2009 – 2019
Table 67 – Development of Oi’s revenue by service – 2012 – 2019
Table 68 – Development of Oi’s EBITDA, capex (Brazil) – 2012- 2019
Table 69 – Decline in the number of Oi’s fixed lines in service – 2010 – 2019
Table 70 – Decline in the number of Vivo’s fixed lines in service – 2009 – 2019
Table 71 – Decline in the number of Claro Brazil’s fixed lines in service – 2006 – 2019
Table 72 – Decline in the number of Claro Brazil’s fixed-line RGUs – 2013 – 2019
Table 73 – Decline in Claro Brazil’s fixed-line revenue – 2013 – 2019
Table 74 – Development of Claro Brazil’s financial data – 2013 – 2019
Table 75 – Growth in the number of TIM Brazil’s fixed lines in service – 2012 - 2019
Table 76 – Growth in the number of Algar Telecom’s fixed lines in service – 2012 – 2019
Table 77 – Decline in the number of fixed lines in service and teledensity – 2009 – 2024
Table 78 – International internet bandwidth – 2004 – 2017
Table 79 – Historic - Mobile market share by technology – 2004 – 2009
Table 80 – Historic - Mobile prepaid/postpaid ratio – 2003 – 2009
Table 81 – Historic - LTE geographic and population coverage by operator – 2017
Table 82 – Historic - Mobile subscribers and penetration rate – 1997 – 2009
Table 83 – Historic - Mobile operators’ market share of subscribers – 2002 – 2009
Table 84 – Historic - Mobile ARPU – major operators – 2009 – 2017
Table 85 – Historic - Oi mobile subscribers – 2002 – 2009
Table 86 – Historic - Claro Brazil mobile subscribers – 2002 – 2009
Table 87 – Historic - Vivo mobile subscribers – 2002 – 2009
Table 88 – Historic – Sercomtel mobile subscribers – 2003 – 2009
Table 89 – Historic - TIM Brasil mobile subscribers – 2002 – 2018
Table 90 – Historic - Algar Telecom mobile subscribers – 2003 – 2009
Table 91 – Historic - Nextel Brazil’s mobile subscribers – 2002 – 2009
Table 92 – Historic - Internet users and penetration – 1998 – 2009
Table 93 – Historic - Fixed broadband subscribers and penetration – 2001 – 2009
Table 94 – Historic - Share of fixed/fixed wireless broadband subscriptions by platform – 2010 – 2015
Table 95 – Historic - Fixed broadband connections by speed – 2014 – 2017
Table 96 – Historic - Cable modem subscribers and penetration – 2001 – 2018
Table 97 – Historic - DSL subscribers and penetration – 2001 – 2009
Table 98 – Wi-Fi hotspots in service – 2013 – 2016
Table 99 – Historic - Oi broadband subscribers – 2001 – 2009
Table 100 – Historic - Telefónica/Vivo FttP homes passed and connected – 2008 – 2015
Table 101 – Historic - GVT – broadband subscribers – 2004 – 2015
Table 102 – Historic - Broadband operators’ market share – 2003 – 2009
Table 103 – Internet access market share by platform – 2005 – 2015
Table 104 – Historic - Average broadband access speed (download) – 2007 – 2017
Table 105 – Historic – Claro’s broadband subscribers – 2001 – 2009
Table 106 – Historic – Vivo’s fixed broadband subscribers – 2001 – 2009
Table 107 – Historic - Fixed lines in service and teledensity – 1995 – 2009
Table 108 – Historic - Operator market share of fixed lines –– 2006 – 2010
Table 109 – Historic - Telecommunications investment – 2000 – 2009
Table 110 – Historic - Proportion of telecom investment by segment – 2000 – 2009
Table 111 – Historic - Evolution of GDP in Brazil – 2000 – 2009
Table 112 – Historic - Telecommunications revenue and proportion to GDP – 2000 – 2009
Table 113 – Historic - Proportion of telecom revenue by segment – 2000 – 2017
Table 114 – Historic - Telecom revenue by segment – 2005 – 2009
Table 115 – Historic – Oi’s fixed lines in service – 1999 – 2009
Table 116 – Historic - Vivo’s fixed lines in service – 1999 – 2009
Table 117 – Historic - Vivo (GVT) financial data – 2012 – 2014
Table 118 – Historic - Vivo (GVT) revenue by service – 2012 – 2013
Table 119 – Historic Vivo (GVT) fixed lines in service – 2006 – 2015

List of Charts

Chart 1 – Latin America –Overall Telecoms Maturity Index
Chart 2 – Latin America Telecoms Maturity Index – Market Leaders Category
Chart 3 – Latin America Telecoms Maturity Index – Market Challengers Category
Chart 4 – Latin America Telecoms Maturity Index – Market Laggards Category
Chart 5 – South America –Telecoms Maturity Index by country
Chart 6 – Central America –Telecoms Maturity Index by country
Chart 7 – Latin America Telecoms Maturity Index vs GDP per Capita
Chart 8 – South America mobile subscriber penetration versus mobile broadband penetration
Chart 9 – Latin America fixed broadband penetration versus mobile broadband penetration
Chart 10 – Change in telecommunications revenue and proportion to GDP – 2009 – 2019
Chart 11 – Change in proportion of telecom revenue by segment – 2009 – 2019
Chart 12 – Development of telecom revenue by segment – 2009 – 2019
Chart 13 – Change in telecommunications investment and proportion of revenue – 2009 – 2019
Chart 14 – Change in telecommunications investment by sector – 2009 – 2018
Chart 15 – Change in telecommunications investment by sector – 2009 – 2018
Chart 16 – Growth in the number of annual mobile numbers ported – 2008 – 2017
Chart 17 – Decline in MTRs – 2016 – 2019
Chart 18 – Growth in the number of mobile towers by operator – 2004 – 2019
Chart 19 – Growth in the number of mobile subscribers and penetration rate – 2009- 2024
Chart 20 – Change in the prepaid/postpaid ratio of mobile connections – 2009 – 2019
Chart 21 – Change in mobile voice and data ARPU – 2009 – 2019
Chart 22 – Change in mobile market share of subscriptions by technology – 2004 – 2019
Chart 23 – Growth in the number of LTE subscribers – 2013 – 2019
Chart 24 – Development in the number of LTE subscribers by operator – 2015 – 2019
Chart 25 – Change in LTE subscriber market share by operator – 2014 – 2019
Chart 26 – Increase in the number of Vivo’s LTE subscribers and penetration – 2015 – 2019
Chart 27 – Decline in the number of 3G subscribers and market share – 2008 – 2019
Chart 28 – Growth in the number of mobile broadband subscribers and penetration – 2009 – 2024
Chart 29 – Increase in mobile broadband population coverage by major operator – 2013 – 2019
Chart 30 – Mobile operators’ market share of subscribers – 2009 – 2019
Chart 31 – Change in the number of Vivo’s mobile subscribers – 2010 – 2019
Chart 32 – Development of Vivo’s mobile financial data (€) – 2013 – 2019
Chart 33 – Development of TIM Brasil’s mobile financial data – 2009 – 2019
Chart 34 – Development of TIM Brasil’s financial data (€) – 2014 – 2019
Chart 35 – Change in the number of TIM Brasil’s mobile subscribers – 2009 – 2019
Chart 36 – Development of Claro Brazil’s mobile revenue – 2010 – 2019
Chart 37 – Decline in the number of Claro Brazil’s mobile subscribers – 2010 – 2019
Chart 38 – Decline in Oi’s mobile revenue – 2012 – 2019
Chart 39 – Decline in the number of Oi’s mobile subscribers – 2010 – 2019
Chart 40 – Development of Algar Telecom’ financial data – 2015 – 2019
Chart 41 – Growth in the number of Algar Telecom’s mobile subscribers – 2009 – 2019
Chart 42 – Growth in the number of fixed broadband subscribers and penetration – 2009 – 2024
Chart 43 – Change in broadband market of subscriber by main operator – 2009 – 2019
Chart 44 – Growth in the number of cable modem subscribers and penetration – 2009 – 2020
Chart 45 – Decline in the number of DSL subscribers and penetration – 2009 – 2020
Chart 46 – Growth in the number of Oi’s broadband subscribers – 2010 – 2019
Chart 47 – Growth in the number of Claros’s broadband subscribers – 2009 – 2019
Chart 48 – Change in the number of Vivo’s broadband subscribers – 2009 – 2019
Chart 49 – Growth in the number of TIM Brasil’s broadband subscribers – 2012 – 2019
Chart 50 – Growth in the number of Algar Telecom’ broadband subscribers – 2009 – 2019
Chart 51 – Growth in the number of Vivo’s FttP/C connections – 2014 – 2019
Chart 52 – Growth in the number of fibre broadband subscribers – 2008 – 2020
Chart 53 – Change in operator market share of fixed lines –– 2009 – 2019
Chart 54 – Development of Oi’s revenue by service – 2012 – 2019
Chart 55 – Development of Oi’s EBITDA, capex (Brazil) – 2012- 2019
Chart 56 – Decline in the number of Oi’s fixed lines in service – 2010 – 2019
Chart 57 – Decline in the number of Vivo’s fixed lines in service – 2009 – 2019
Chart 58 – Decline in the number of Claro Brazil’s fixed lines in service – 2006 – 2019
Chart 59 – Decline in the number of Claro Brazil’s fixed-line RGUs – 2013 – 2019
Chart 60 – Decline in Claro Brazil’s fixed-line revenue – 2013 – 2019
Chart 61 – Development of Claro Brazil’s financial data – 2013 – 2019
Chart 62 – Growth in the number of TIM Brazil’s fixed lines in service – 2012 - 2019
Chart 63 – Growth in the number of Algar Telecom’s fixed lines in service – 2012 – 2019
Chart 64 – Decline in the number of fixed lines in service and teledensity – 2009 – 2024

List of Exhibits

Exhibit 1 – Generalised Market Characteristics by Market Segment
Exhibit 2 – South America - Key Characteristics of Telecoms Markets by Country
Exhibit 3 – Central America - Key Characteristics of Telecoms Markets by Country
Exhibit 4 – Map of Brazil
Exhibit 5 – Regions and states of Brazil
Exhibit 6 – H-band for 3G services – lots, areas, and spectrum winners
Exhibit 7 – Bands for 4G services – blocks, winners, and price/MHz/population
Exhibit 8 – 700MHz auction results – 2014
Exhibit 9 – 1800MHz, 1900MHz, 2.5GHz auction bids – December 2015
Exhibit 10 – Subdivision of Brazil into regions and areas for mobile licensing
Exhibit 11 – Vivo – concessions
Exhibit 12 – TIM Brasil – concession awards for frequency bands A, B, D, E
Exhibit 13 – Claro Brazil – concessions
Exhibit 14 – Oi – concession awards for frequency bands A, D, E, M
Exhibit 15 – Regions and states of Brazil
Exhibit 16 – Regions and states of Brazil
Exhibit 17 – Regions and States of Brazil
Exhibit 18 – Atlantic Cable System – planned
Exhibit 19 – Geostationary satellites operating in Brazil
Exhibit 20 – Historic - LTE TDD deployments
Exhibit 21 – Historic - LTE deployments
Exhibit 22 – Historic - 3G network launches by operator – 2007 – 2008

Click here to access the report : https://www.budde.com.au/Research/Brazil-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Brazil revises telecom legislation to facilitate market fluidity

The Brazilian fixed-line market continues to suffer from consumers substituting services for mobile and VoIP solutions, the latter offerings being treated as value-add and thus not being regulated.

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