Competitive Dynamics in Brazil’s Telecommunications to Boost Brazilian Economy : Ken Research


According to the study “Brazil: Country Intelligence Report”, Brazil possesses advanced technology in telecommunications systems with four major mobile operators offering a wide range of voice and data services. Therefore, Brazil is the largest broadband markets in Latin America with extensive microwave radio relay systems and a domestic satellite system. The country is a pioneer for m-commerce or electronic commerce conducted on mobile phones. Brazil offers less-expensive mobile-cellular technology; therefore, mobile services were extended to the lower-income population to increase teledensity. Brazil is connected through submarine cables and satellites as a major communication platform because it is impossible to lay fibre optic cable in the thick vegetation.

Brazil is the eighth-largest economy in the world and is yet to recover from a recent recession. The country’s economy is negatively affected due to multiple corruption scandals within private companies and government officials. Therefore, national business opportunities ceased drastically, producing a ripple effect on related businesses and contractors. This scenario has creating great opportunities for foreign companies to establish themselves in a closed market. Brazilian government has bolstered various infrastructure projects such as oil and natural gas which raised revenues. Many other economic reforms were proposed to reduce barriers to foreign investment and improve labour conditions. Many policies were enforced to strengthen Brazil’s workforce and industrial sector.

Brazilian telecommunications sector has witnessed a tremendous growth with the use of mobile smartphones due to affordable prices. This trend has led to an increase in Brazilian telecom revenues and the leading players generate higher operating margins. It was estimated that the Brazilian telecommunications sector outlook is favourable with continuous rise in the use of mobiles and smartphones. The leading players within the Brazilian telecommunications sector are Claro, Oi, Vivo Fixo, Telefonica, Algar Telecom, Sercomtel, Embratel, Telemar, TIM, GVT, Telmex Solutions, Tdata, Ericsson, AT&T, Verizon, China Mobile, NTT, T Mobile, Xfinity, SoftBank, Vodafone, China Telecom, Orange, Docomo, BT, Spectrum, BCE, Sky, China Unicorn, Movistar, O2 and Deutsche Telekom. The telecommunications sector in Brazil is well established and accounts for high market shares. Therefore, local leading players are contributing towards the improving the market of wireless broadband in the public safety and municipal wireless domains.

Wireless broadband technology is introduced within the transportation, public safety, industrial and in public services sectors to improve infrastructure and advanced network technologies usage. It was observed that there is a growing demand for public safety wireless communication systems and satellite communication which can be used in times of disaster and emergencies when land communication does not work for navigation and gathering of system information. Every intelligence report provides detailed coverage of political, economic, and commercial developments. Brazilian’s infrastructure development and services market is expected to witness a steady growth over the next few years which will help in future growth of wireless communication in public safety and municipal wireless communication.

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Ken Research
Ankur Gupta, Head Marketing & Communications




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