Market Trends of Brazil Telecom Industry
This section covers the major market trends shaping the Brazil Telecom Market according to our research experts:
Deployment of 5G Network in Brazil
- The growth in Brazil's telecom Market has been driven by the increasing population, communication services, and rising adoption of smartphone services. The growth is expected to be supported further by regulatory authorities, which play a significant role in the transition to the 5G network in the country.
- The adoption of 5G technology is increasing among the key players in Brazil, such as AT&T, Verizon, and Claro. These key players are creating a roadmap for the deployment of next-generation 5G through strategic alliances. For instance, in December 2021, Claro launched its first commercial 5G network in Brasília and Sao Paulo. Implementation of a 5G network will help transfer data at a higher speed, connecting several devices simultaneously.
- According to the GSMA report, Brazil is the first country expected to have more than USD 218 million smartphone connections in 2025. The demand for deploying 5G networks is expected to grow significantly with the increasing adoption of smartphone connections.
- 3G and 4G customers are now slowly migrating to the 5G network. The transition to 5G is still rising in the country due to expanding new networks and the expansion of the device ecosystem. Key players in the market, Claro and Telefonica's 5G networks, serve 15 cities and eight cities across Brazil, respectively.
- Key players in the telecom market are focused on offering wireless services that support 4G and 5G networks. According to the survey from American Tower, Vivo (Telefonica) wireless service provider have the highest market share of 38% among other telecom players (Telecom Italia, Claro (America Movil), etc.).
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Rising Demand for OTT and Pay-TV Services
- The Brazilian telecom market is expected to grow significantly over the forecast period with the rising adoption of OTT (over-the-top) and pay-TV services in the sector that connects with wired and wireless broadband.
- According to Cullen International, among the eight countries surveyed, Brazil and Canada are considering legislation to have OTT services contribute to the production of domestic video content. High-quality video channels, flexibility, and scalability deliver world-class OTT streaming services for customers, which is expected to continue boosting growth in the Brazilian telecom market.
- Amazon Prime Video is one of the OTT service providers in Brazil. Brazilian Grupo Globo and Amazon Prime Video partnered to provide Premiere Prime Video Channels in Brazil. It is a series of pay-TV channels that broadcast football league matches in Brazil under the PPV modality. Amazon Prime Video also started offering live sports streaming in the country. These OTT service providers are expected to create new growth opportunities for the telecom market.
- Netflix gained 2.9 million new subscribers in Q1 2021. The relationship between telecom enterprises and OTT service providers is expected to bring new customers into the market.
- According to Ookla Speedtest Global Index, Brazil ranked 65th with a median mobile download speed of 31.52 Mbps. Customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market.
