Thursday, September 4, 2014

Snapshot - Brazilian Mobile Market

The Brazilian mobile telecom market reached 271,1 million lines until the end of 2013, which represents an annual growth of 3.6% (vs. 8.1% in 2012) in accordance with ANATEL (National Telecommunications Agency).

The decrease in the growth pace of the customers’ base results from a less dynamic economic environment, a highly penetrated market (due to the use of multiple SIM Cards) and from the competitive pressure stabilization. However, the growth of the mobile telecom market has been supported by three main factors: i) the machine-to-machine market, ii) the growth in demand for data service, especially in smart/webphones and iii) the migration from pre-pay to contract plans. In accordance with ANATEL, the landline telephony sector had a slightly growth of 0.7% when compared to the previous year, closing out the period with 44.6 million accesses, which represents a penetration of nearly 22.7 lines for each 100 houses.
The Brazilian mobile telecom market is the fifth largest in the world and it reached, in 2013, a density rate of 136.4 lines for each 100 citizens. The mobile telephony has already been established as the communication mean that is mostly present in Brazilian homes no matter social class, mainly because market offers focused on calls made within the same telephone company.
Latest news
Ø  Brazil adds 446,000 mobile lines during July
Brazil ended July with a total 276.15 million active mobile telephony lines, after a net addition of over 446,000 lines during the month, according to data from the country's telecoms regulator Anatel. Brazil ended the month with an overall mobile telephony penetration of 136.18 percent.
Prepaid lines accounted for 76.85 percent of total lines by end-July. Brazil's federal district ended July with an overall mobile telephony penetration of 218.38 percent, with 6.22 million subscribers, according to the regulator. Sao Paulo had 66.78 million mobile subscribers, resulting in an overall penetration rate of 151.61 percent, while Rio de Janeiro ended the month with 24.47 million subscribers, a penetration of 148.6 percent.
Vivo was market leader with 79.40 million mobile lines (28.75% of the total), followed by TIM with 74.37 million (26.93%), Claro with 68.93 million (24.96%), Oi with 51.09 million (18.50%), Algar/CTBC with 1.10 million (0.40%) and Nextel with 1.07 million (0.30%).
Ø  Over 70% of Brazilian youth access internet via mobile phone
The mobile phone is the preferred device of 71 percent of young people in Brazil to access the internet. They spend 58 percent of time online browsing, especially on social networks, according to the Connected Youth survey conducted by the Telefonica Vivo Foundation, in partnership with Ibope Inteligencia, the Paulo Montenegro Institute and the School of the Future - USP. The survey also found that the easiest way to contact a representative of the so-called "Generation Y" is social networks and instant messaging, a favourite media for 45 percent of them. Over a third (35%) still prefer email.

Ø  Mobile data traffic in Brazil set to skyrocket
Mobile traffic in Brazil will see a hefty 11-fold increase between 2013 and 2018, reaching 440 petabytes per month by the end of the period, according to research.
The predicted growth in mobile data traffic is four times greater than the forecast for fixed data traffic for the next five years, according to the Virtual Network Index (VNI) study carried out by Cisco.
The representation of mobile broadband in all IP traffic in Brazil will jump from two percent in 2013 to 11 percent in 2018, it adds.
Within five years, 68 percent of the Brazilian population have access to the Internet (142 million people, up from 81 million in 2013), with an average of 3.1 connected mobile devices per person, according to the research.
By 2018, there will be 645 million connected devices compared to the current 418,8 million in 2013, the report suggests, with about 55 percent of all connected devices being mobile.
The Cisco study adds that the amount of traffic going through Brazilian networks will be equivalent to 40 times the volume of the entire Brazilian Internet in 2005.