Brazil - Telecoms, Mobile and Broadband - Statistics and Analyses

Brazil - Telecoms, Mobile and Broadband - Statistics and Analyses

  • December 2021 •
  • 363 pages •
  • Report ID: 4710247 •
  • Format: PDF
Brazil’s operators prepare to increase 5G rollouts with additional spectrum

The recently concluded multi-spectrum auction held in Brazil was dominated by the incumbent telcos, though there was room for several smaller players to secure regional licences.

The licensees are obliged to provide 5G services to all capital cities by July 2022, as well as to about 35,780km of the national highway network. Unusually, all licenses can potentially be used to provide wholesale services.

The auction raised R$47.2 billion, though R$7.44 billion of this has tentatively been deferred to encourage the licensees to extend services into underserved areas.

Since 2020 the government has come under pressure from the US to ban Chinese companies such as Huawei from being involved in building 5G networks, due to security concerns. However, Brazil opted not to impose restrictions on the use of Huawei’s 5G network equipment. Huawei already supplies equipment for nearly half of the 3G and LTE networks in Brazil, and excluding it would have cost billions of dollars to replace. Following the auction, Huawei was quick to negotiate with licensees, most being existing long-term customers.

Despite the auction delay, operators have launched 5G services on a limited basis. Telefónica is developing 5G services for industrial processes using AI and machine learning at its lab in Madrid, and user cases will initially be deployed in Germany and Brazil.

Key developments:

  • Regulator concludes multi-spectrum 5G auction;

  • IHS completes its acquisition of a 51% stake in FiberCo;

  • BTG Pactual buys 58% of Oi’s fibre business Infraco for $2.3 billion;

  • Regulator allows accredited MVNOs to sign access agreements with more than one MNO;

  • Algar Telecom acquires Vogel Telecom, adds 3,400 corporate clients;

  • Regulator allows operators with spectrum in the 850MHz band to extend their concessions until the end of November 2028;

  • Tannat submarine cable connecting Brazil and Argentina ready for service;

  • Telefônica Brasil and CDPQ create wholesale fibre broadband business, dubbed FiBrasil;

  • América Móvil spins off towers and other related passive infrastructure in its Latin American markets;

  • Operators launch 5G services on a limited basis;

  • Report update includes the regulator’s market data updates to June 2021 and operator data to Q3 2021, updated Telecom Maturity Index charts and analyses, assessment of the Covid-19 pandemic on the telecom sector, recent market developments.

Companies mentioned in this report:
  • Telefônica Brasil (Vivo), Brisanet, BTG Pactual, TIM Brasil, Claro, Huawei, Oi, Nextel Brasil, CTBC/Algar Telecom, Sercomtel Celular, Vodafone Brazil/ARQIA, Embratel, Ericsson, Google, GVT, Universo Online (UOL), Net Serviços de Comunicação, Intelig, Neovia, Eletropaulo Telecom, Copel, BuscaPé, Global Crossing, Star One, TelesatBrasil, Hispamar, Telebrás, Intelig.