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Broadband Services and Pay TV Increased Adoption Propel Brazilian Telecommunications Services Market, Finds Frost & Sullivan


News provided by

Frost & Sullivan

29 Feb, 2016, 20:32 GMT

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Broadband services (PRNewsFoto/Frost & Sullivan)

Modern applications and VAS are being leveraged as loyalty tools 

SAO PAULO, Feb. 29, 2016 /PRNewswire/ -- The higher adoption of pay TV and broadband services, provision of multiple-play bundles and value-added services (VAS), and investments to expand fiber-optics networks and mobile broadband networks have given a huge boost to the Brazilian telecommunications market. The wider range of innovative technologies, reduced network deployment costs and prices of entry products will especially aid the deeper penetration of telecommunications products in the lower income segments and underserved cities.

Photo - http://photos.prnewswire.com/prnh/20160229/338585

New analysis from Frost & Sullivan, Analysis of the Brazilian Total Telecommunications Services Market (http://www.frost.com/sublib/display-report.do?id=NFBD-01-00-00-00&src=PR), finds that the market earned revenues of $60.14 billion in 2015 and estimates this to reach $70.03 billion in 2020.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/LA_PR_FValente_NFBD_17Feb16

There is a fresh market for novel business models such as over-the-top video services, business and home applications of broadband services, and machine to machine (M2M) and payment applications in mobile networks. In effect, operators are offering a combination of low-priced services for the untapped segments, and premium solutions for increasing the average revenue per user.

"The deployment of 3G, Long-Term Evolution and fiber-optics networks make available higher bandwidth and throughput, and open up markets for additional applications and services in the consumer and business segments," said Frost & Sullivan Digital Transformation Industry Analyst Carina Gonçalves. "Besides, with the rise of small cable TV associations and Internet service providers, untapped markets such as Pay TV and broadband could also witness heated competition."

On the flip side, the intense competition could diminish margins, as can the revised tariff regulations on the prices of traditional telecommunications services such as voice and basic connectivity. Furthermore, the high taxes on telecom services and spectrum, and costs limitations on broadband services can constrict the profits of operators.

The Government and the national telecommunications regulator, Anatel, play important roles in implementing and revising the National Broadband Plan and improving regulation policies as well as aggregating operators' interactions and contributions. In order to stimulate broadband and connectivity services growth, the regulator must encourage infrastructure sharing, since there is not enough space for new transmission structures, especially in the metropolitan areas.

In the current scenario, telecommunications operators are investing heavily in the deployment of their own networks, which limits their ability to slash prices as their business plans restrict profitability.

"All fixed operators are focusing on enhancing data capacity and expanding geographical coverage of their networks to enrich quality of service and expedite return on investment in a progressively connected environment," noted Gonçalves. "In this context, over-the-top services and Internet neutrality are becoming increasingly relevant and will be vital to the business plans of telecommunication service providers in Brazil."

Analysis of the Brazilian Total Telecommunications Services Market is part of the Communication Services (http://ww2.frost.com/research/industry/information-communications-technologies/communications-services) Growth Partnership Service program. Frost & Sullivan's related studies include: The Telecommunications Market in Central Africa—Key Fixed and Mobile Market Indicators, Burgeoning Mega Cities in SSA, Enterprise Data Services, The Many Faces of IoT—Smart Grids, 5th Generation Networks, and The Impact of Regulatory Developments within the Telecommunications Markets of Kenya, Nigeria, and South Africa. All studies 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?

Contact Us:     Start the discussion

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Analysis of the Brazilian Total Telecommunications Services Market
NFBD-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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