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Frost & Sullivan: Market consolidation Into Major Telco Groups in Brazil To Drive Competition Nationwide

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Frost & Sullivan: Market consolidation Into Major Telco Groups in Brazil To Drive Competition Nationwide PR Newswire SAO PAULO, July 11, 2012 - Intensifying competition stokes the proliferation of services to offer competitive rates SAO PAULO, July 11, 2012 /PRNewswire/ -- A positive economic outlook as well as investments in multiple-play bundles and 3G mobile network expansions have given a huge boost to the Brazilian telecommunications services market. Brazil has been languishing behind most other Latin American countries in terms of household penetration of fixed broadband services and pay TV services, as well as mobile data services revenues. However, all this is set to change with operators recognizing an opportunity to increase service adoption through lower-priced services and multiple-play offerings. New research from Frost & Sullivan (http://www.ipcommunications.frost.com), Analysis of the Brazilian Total Telecommunications Services Market, finds that the market earned revenues of $66.15 billion in 2010 and estimates this to reach $97.64 billion in 2016. 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.
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Frost & Sullivan: Market consolidation Into
Major Telco Groups in Brazil To Drive
Competition Nationwide
PR Newswire
SAO PAULO, July 11, 2012
- Intensifying competition stokes the proliferation of services to offer
competitive rates
SAO PAULO
,
July 11, 2012
/PRNewswire/ -- A positive economic outlook as well
as investments in multiple-play bundles and 3G mobile network expansions
have given a huge boost to the Brazilian telecommunications services market.
Brazil
has been languishing behind most other Latin American countries in
terms of household penetration of fixed broadband services and pay TV
services, as well as mobile data services revenues. However, all this is set to
change with operators recognizing an opportunity to increase service adoption
through lower-priced services and multiple-play offerings.
New research from Frost & Sullivan (http://www.ipcommunications.frost.com),
Analysis of the Brazilian Total Telecommunications Services Market
,
finds that the market earned revenues of
$66.15 billion
in 2010 and estimates
this to reach
$97.64 billion
in 2016.
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.
The increasing coverage of alternate telecommunications networks will
enhance penetration among low-income users and even in distant geographic
areas, including small- and medium-sized cities. Although the Brazilian mobile
services market could be considered saturated after it surpassed 108 percent
in penetration in 2010, the prevalence of multiple SIM cards, mobile to mobile
(M2M) services, mobile broadband, mobile virtual network operators (MVNOs),
and the emergence of a social middle class are likely to help the market grow
further.
"Another important factor that will accelerate the penetration of
telecommunications services is the intensifying competition brought on by the
deregulation of the cable TV market in
Brazil
," said Frost & Sullivan Industry
Analyst Renato Pasquini. "This escalating rivalry among integrated participants
to provide convergent services, the entrance of telecom companies in the pay
TV market, and the rise in the number of cities with coverage overlap of
different fixed and mobile networks are all expected to take the market to the
next level of competitiveness."
The offer of converged services by integrated companies will particularly
enhance the penetration rates of fixed broadband services, pay TV services,
and mobile data services usage. On the other hand, the lack of competition in
remote areas and small cities, the high tax burden, and regulators' delay in
taking important decisions related to spectrum auctions and competitive
remedies could hold the market back.