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InfoCom Says Mobile and Broadband Main Drivers of Brazilian Market Until 2014

Telecom spending in Brazil to rise to 35.6bn in 2014 - Mobile and broadband main drivers - Broadband Internet spreading but quality is an issue - Fixed telephony penetration to decline

Stuttgart, Germany, September 26, 2009 --( Telecom spending in Brazil amounted to €31.2bn in 2008, equivalent to about 3% of the country’s GDP, and it is expected to rise to €35.6bn in 2014 at a CAAGR (compounded annual average growth rate) of 2.2%. Revenues from fixed telephony will continue to decrease despite fixed telephony carriers’ efforts to attract customers by decreasing service pricing and increasing geographical coverage.

Mobile telephony will remain the main driver of the telecom sector. The growth in subscription will offset the decline in prices. Indeed, if ARPU (average revenue per user) is expected to decrease from currently €9.00 to €8.40 in 2014, the total subscriptions will increase to 185.9 millions by 2014, representing a penetration rate per inhabitant of nearly 90%. Growth opportunities will likely come from the prepaid market, particularly the low-income users and SME segment, and from Region I, where mobile penetration is still relatively low. Non-voice services should gain some momentum as soon as 3G based mobile broadband services become more geographically available. Furthermore, the launch of 4G (LTE) technologies in the first part of the next decade should further boost mobile broadband by allowing faster and enhanced mobile data services.

Brazilian telecom market trends reported by InfoCom also include:

-- Broadband penetration continues to increase as at end-2008, over 17% of all Brazilian households had broadband Internet access, up from about 10% in 2006. xDSL is the leading broadband technology while 2.5 million are cable modem subscribers: Embratel’s subsidiary Net Serviços (formerly Globo Cabo) controlls more than 90% of the cable modem segment with 2.2 million subscriptions.
-- Brazil is one of the fast-developing economies in the world along with China, India and Russia. Coupled with its large population and ongoing industrialisation, Brazil is expected to become one of the leading countries in agriculture, manufacturing, mining, service and telecommunication sectors.

About this research - This research is available in the Emerging Markets& Products module of InfoCom Knowledge Centre. This module - one of six - gathers InfoCom expertise in researching emerging markets, with a huge amount of indicators and strategic insights on a large number of markets, with the usual InfoCom reliability. Country dashboards for markets like Bangladesh, Cambodia, Laos, Pakistan, Syria, United Arab Emirates and Vietnam are inside. This module includes also strategic insights on innovative and new, emerging products, available from InfoCom research activities, such as mobile TV, eNewspapers, Cloud gaming as many others.

About InfoCom: InfoCom is a market research and consultancy company with over 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage

Contact Information
Infocom GmbH
Aileen Brucal
+49 711 870510-39
Rotebuehlplatz 21, 70178 Stuttgart, Germany

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