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Broadband Network Deployments Spur Brazilian Telecommunications Services Market, Finds Frost & Sullivan

SAO PAULO, March 25, 2013 /PRNewswire/ -- The Brazilian telecommunications services market is poised for rapid growth owing to a healthy economy, increasing competition and the expansion of broadband networks in the country. This wider coverage, along with the use of wireless technologies and proliferation of smart devices, will attract low-income and remotely located consumers, and lead to the market's expansion in Brazil.

New analysis from Frost & Sullivan ( http://www.ipcommunications.frost.com), Brazilian Total Telecommunications Services Market, finds that the market earned revenues of more than $73.08 billion in 2011 and estimates this to reach $99.42 billion in 2017 at a compound annual growth rate of 5.3 percent. The research covers fixed telephony services, mobile services (voice and data), fixed broadband services, data communications services, pay TV services and fixed voice over Internet protocol (VoIP) services.

"The pay TV, fixed broadband, mobile data, and value-added service segments in Brazil are expected to grow the fastest due to their low penetration rates," said Frost & Sullivan Telecommunications Industry Manager Renato Pasquini. "The development of over-the-top (OTT) applications on broadband networks, standalone and bundle offerings with pay TV services, and innovative mobile solutions will lead to new business models, such as tiered pricing, that will drive revenues."

The approval of a new regulatory framework in Brazil allowing telecom companies to offer cable and Internet protocol television (IPTV) services will cut ultra-broadband connection prices and accelerate adoption. This deregulation of the cable TV market and the growth of telecom providers' operations in the pay TV market will also intensify competition and further reduce prices.

The market will continue to grow as fixed telephony concessionaries and large mobile operators proceed with the broadband network expansion through the National Government Broadband Plan (PNBL) voluntarily agreements, aiming to reach all Brazilian cities by 2015. However, the resulting increase in data traffic may affect service quality.

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