LatAm_latam 09/07/2014 15:53 Page 2
Bundled offerings will attract
Brazilian users
he deployment of 3G, long-term
evolution (LTE), and fibre-optic
networks that require high
bandwidth and throughput is unlocking
new possibilities for telecommunication
applications and services in the Brazilian
consumer and business segments. The
availability of economical products, in
large part due to competition in the payTV and broadband space, will encourage
the uptake of services among lower
income consumers.
Analysis from Frost & Sullivan - Analysis of
the Brazilian Total Telecommunications
T
compound annual growth rate of 4.2%.
According to the research firm, the currently
modest adoption rates of pay-TV, fixed and
mobile broadband, and value-added services
point to vast untapped potential in the market.
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-tomachine 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. “They are using
business and home applications pooled with IT
and value-added services as loyalty tools to
“They are using business and
home applications pooled with
IT and value-added services
as loyalty tools.”
Services Market - finds that the market earned
revenues of $68.07 billion in 2013 and forecasts
this to reach $83.72 billion in 2018 at a
strengthen customer relationships.”
Frost & Sullivan notes that while on the one
hand participants are creatively transforming
revenue models, on the other, 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. The Government,
along with national telecommunications
regulator, Anatel, must improve regulations and
enforce the National Broadband Plan to offset
these challenges.
“The regulator must also stimulate
infrastructure sharing to motivate competition
and services growth,” advised T