Telecommunications Opportunities

An Expert's View about Wired Telecommunications in Brazil

Last updated: 29 Jul 2011

The telecommunications sector is expected to grow strongly in 2011, driven by strong sales of smartphones and investments in infrastructure in the sector.

Sector briefing Telecommunications Opportunities in Brazil Why Brazil? The telecommunications sector is expected to grow strongly in 2011, driven by strong sales of smartphones and investments in infra- structure in the sector. The main issues in the telecommunications market in 2011 following the market consolidation in 2009-2010 are services convergence; take-up of smart-phones and 3G expansion; number portability; IPTV; Digital TV; Wimax; broadband expansion and government promotion of broadband access for all; regulation for MVNO services. There were 205m mobile lines in March 2011, up from 191.5m in September 2010, making Brazil the fifth largest market in the world. ??Brazil is the fifth largest mobile telecommunications market in the Find general information on Brazilian market world?? conditions on UKTI?s website. The Doing Business Guide for Brazil gives an overview of Brazil?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Telecommunications opportunities in Brazil Opportunities The main providers of broadband are Oi, Net and Telefonica, with 80% of the market Market consolidation has left 4 major between them. telecommunications groups: A national broadband plan has been launched Mobile operator Vivo has been taken over by the government which proposes to iron out completely by Telefonica after the acquisition market anomalies such as excessively high of the 50% share owned by Portugal Telecom. prices, monopolistic activities and unfair Telefonica is also the leading fixed operator competitive practices. The government intends and owns TVA, the leading Pay-TV provider, as to provide a high-speed internet service to all well as Speedy (internet and broadband). Brazilians at a price of between R$15 and R$35 per month. The Ministry of Communications Portugal Telecom have bought into Oi/Brasil expects to invest R$79bn in the project. Telecom, the Brazilian group in which the Brazilian government is a major shareholder. 3G Oi was the first consolidated and converged services provider. The focus in 2011 for telecommunications will be on 3G expansion led by sales of new TIM is one of the 4 mobile operators. Although handsets and investment in 3G infra-structure. Telecom Italia was bought by Telefonica in 3G networks have been set up by Nokia- Europe, TIM in Brazil is obliged to remain Siemens, Ericsson, Huawei, and ZTE. Local separate in all operational and marketing manufacturers such as Ericsson, Nokia- aspects from Vivo. Siemens and Motorola, Alcatel-Lucent, LG, Cisco, NEC, Huawei and ZTE are also the major Mexican group Telmex owns mobile operator importers of telecommunications equipment. Claro, fixed and satellite services company Factories have been set up with loan incentives Embratel and Pay-TV operator Net, and has from BNDES (Brazilian Development Bank) and become a strong converged services provider. tax incentives. A wide range of equipment is made locally, including accessories, cables, Prepaid phones make up 82% of the market, a connectors, racks, mobiles, public telephones proportion that is currently stable. The increase and PABX, modems, multiplexers, optical in mobile customers is mainly amongst the C technology and software. Network equipment and D categories and younger age groups, is either imported or assembled locally. Local leading to low ARPU. Income from data manufacturers are coming under increasing transmission is low compared to Europe and pressure from the rising value of the Real, Japan. SMS messaging is relatively uncommon. which has reached R$1.57 to the US$ in April 2011. All phones are now either GSM or 3G. 3G networks were rolled out in 2008 and by March Regulation 2011, there were 23m 3G accesses in use, up from 16.8m in September 2010. Any telecommunications product supplied into the operators has to be approved by Anatel, Digital television, which will be universal within the regulatory body: www.anatel.org.br. 10 years, has been operational for 3 years in Suppliers must have a Brazilian representative the ISDB-T format. to guarantee after-sales service. A partner in the market is useful to negotiate local market Internet Access and Broadband difficulties such as long lead times to contract, high taxation (40% of the consumer?s bill is Over 67m Brazilians have regular access to the tax), bureaucracy and, in the case of mobile internet. There were 13.8m broadband internet applications, a relatively low level of revenue accesses by December 2010, of which nearly passed on by operators. 9m were ADSL. Cheaper computers thanks to tax reductions have helped with internet expansion although service costs continue to be very high in Brazil. The same applies to Pay-TV which had 10.2m customers by February 2011, up from 9.4m in October 2010. UK Trade & Investment Sector briefing: Telecommunications opportunities in Brazil When considering doing business in Brazil, it is UKTI contacts essential to obtain legal, financial and taxation advice. A useful contact list of lawyers and Steve Williams other relevant professional bodies as well as ICT Sector further information on the telecommunications UKTI London sector in the country is available from UKTI. Tel: +44 0 20 72154859 For further details, please contact: Email: steve.williams@ukti.gsi.gov.uk www.ukti.gov.uk Paul Smith - paulb.smith@fco.gov.uk Paul Smith UKTI Brazil Major events and activities British Consulate-General São Paulo Tel: +55 11 3094 2737 A prog Email: paulb.smith@fco.gov.ukramme of events is being planned by the UKTI ICT sector g www.ukti.gov.ukroup and UKTI in Sao Paulo. Contact: Paul Smith Email: paulb.smith@fco.gov.uk Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Telecommunications opportunities in Brazil Next steps - How UKTI can help British companies wishing to develop their business in the Brazilian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Brazil, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in the Brazilian market. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Brazilian market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Brazilian market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk . This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Telecommunications opportunities in Brazil
Posted: 28 July 2011, last updated 29 July 2011

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