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Broadband Network Deployments Spur Brazilian Telecommunications Services Market, Finds Frost & Sullivan


News provided by

Frost & Sullivan

25 Mar, 2013, 19:48 GMT

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-- High-speed networks allow advanced Pay TV and over-the-top services to attract high-value customers

SAO PAULO, March 25, 2013 /PRNewswire/ -- The Brazilian telecommunications services market is poised for rapid growth owing to a healthy economy, increasing competition and the expansion of broadband networks in the country. This wider coverage, along with the use of wireless technologies and proliferation of smart devices, will attract low-income and remotely located consumers, and lead to the market's expansion in Brazil.

New analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), Brazilian Total Telecommunications Services Market, finds that the market earned revenues of more than $73.08 billion in 2011 and estimates this to reach $99.42 billion in 2017 at a compound annual growth rate of 5.3 percent. The research covers fixed telephony services, mobile services (voice and data), fixed broadband services, data communications services, pay TV services and fixed voice over Internet protocol (VoIP) services.

"The pay TV, fixed broadband, mobile data, and value-added service segments in Brazil are expected to grow the fastest due to their low penetration rates," said Frost & Sullivan Telecommunications Industry Manager Renato Pasquini. "The development of over-the-top (OTT) applications on broadband networks, standalone and bundle offerings with pay TV services, and innovative mobile solutions will lead to new business models, such as tiered pricing, that will drive revenues."

The approval of a new regulatory framework in Brazil allowing telecom companies to offer cable and Internet protocol television (IPTV) services will cut ultra-broadband connection prices and accelerate adoption. This deregulation of the cable TV market and the growth of telecom providers' operations in the pay TV market will also intensify competition and further reduce prices.

The market will continue to grow as fixed telephony concessionaries and large mobile operators proceed with the broadband network expansion through the National Government Broadband Plan (PNBL) voluntarily agreements, aiming to reach all Brazilian cities by 2015. However, the resulting increase in data traffic may affect service quality.

In addition, the high taxes on equipment, network elements, and services present a challenge for operators. To draw potential investors, enable operators to meet the unmet demand in Brazil, and shift customers to broadband, the Government must implement the national broadband plan effectively. Latest developments to improve conditions for the Telecommunications market include Decree 7,921, approved on February 15, 2013, which main objective is to promote tax reductions for network deployment. However, taxes on services are still very high in Brazil when compared to other Latin American countries.

"Telecom operators need to negotiate with each other, with utilities and road concessionaires, with the Government, and with third-party companies," noted Pasquini. "This will enable them to minimize costs, avoid bureaucracy for infrastructure deployment and infrastructure sharing, and receive regulatory incentives such as unbundling, leased lines, and interconnection regimes."

Offering prepaid, hybrid and alternative plans, as well as bundles and economy lines, will help service providers to keep increasing their client base in the country.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Brazilian Total Telecommunications Services Market is part of the Telecom Services Growth Partnership Service program. Frost & Sullivan's related research services include: Latin American Mobile Services Market Outlook, Latin America Pay TV Services Market, Latin American Data Communications Services Market, and Latin American Broadband Services Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Brazilian Total Telecommunications Services Market
NB8D-63

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com

http://www.frost.com

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