Brazil telecom services market revenue to reach $83.72 billion in 2018: Frost & Sullivan

Brazil telecom services market revenue will increase to $83.72 billion in 2018 from $68.07 billion in 2013 at a compound annual growth rate of 4.2 percent, said Frost & Sullivan.

The currently modest adoption rates of pay TV, fixed and mobile broadband, and value-added services point to vast untapped potential in the market, said the report.

Frost & Sullivan said bundling new solutions with existing ones is one way to attract consumers. Establishing novel business models such as over-the-top video services and delivering machine-to-machine (IoT) and payment applications in mobile networks will also help service providers extend their reach in the Brazilian telecommunications services market.

“Telecommunications operators have put in place a combination strategy to spur revenues, providing cheaper offerings to break into under-penetrated segments, and premium offerings to enhance average revenue per user,” said Frost & Sullivan Information and Communication Technologies Senior Consultant Carolina Teixeira.

The deployment of 3G, 4G and fiber-optic networks that require high bandwidth and throughput is unlocking new possibilities for telecom applications and services in the Brazilian consumer and business segments.

Frost & Sullivan said the availability of economical products, in large part due to competition in the pay TV and broadband space, will encourage the uptake of telecommunication solutions and services among lower income consumers.

Participants are transforming revenue models, while telecom regulatory imbalance issues among smaller operators, high tax burden of telecom services, and spectrum and cost limitations of broadband services are curbing their market scope.

Frost & Sullivan suggests that the Government, along with Anatel, telecom regulator, need to improve regulations and enforce the National Broadband Plan to offset these challenges.

Within this context, over-the-top services and Internet neutrality are becoming issues of considerable significance in the dynamic Brazilian market.

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