Brazil telecom market

Page history last edited by Brian D Butler 8 mos ago

Table of Contents:

  1. Cell phone market size:
  2. Important players:
  3. Background information about the Telecom industry in Brazil:
  4. More info:
  5. NEWS
      1. Oi close to taking over Brasil Telecom
  6. Links from KookyPlan
  7. External Links:

 

Cell phone market size:

 

At the end of September 2008 Brazil had 140.78 million working cell phone lines.

source:ANATEL. www.anatel.gov.br

 

 

Important players:

 

Oi purchased "Brazil Telecom" in 2008 for R$4.3 billion reais, financed by Banco do Brasil (BB)....controversially exceeding BB's limit of 10% loan portfolio in any sector of the Brazilian economy

 

 

 

Background information about the Telecom industry in Brazil:

 

While it may be true that Recife is lacking in broadband internet options (for the last mile), on the other hand Brazil does have a very good internet backbone (national infrastructure). The existing national distribution of broadband is excellent. There have already been many large investments made into building out the backbone infrastructure. The problem is just with the last mile deployment of getting that internet connection wired to each of the individual homes.

 

 

 

The Telecommunications industry (wire line) in Brazil has been privatized. The Cardoso government successfully auctioned off most of the telecoms industry. For its sale, Telebrás was broken into 12 components, three regular telecoms, one long-distance carrier and eight mobile companies. Foreign firms from Spain, Portugal, Italy, Canada and the United States purchased bits and pieces of the former monopoly for a total sale price of US$19bn. The largest components, São Paulo’s fixed- and mobile-phone companies, went to groups led by Telefónica of Spain and Portugal Telecom, which paid US$8.1bn. Other foreign buyers included Telecom Italia, which paid US$608m and US$573m, respectively, for mobile companies in the south and north-eastern regions and Telesystem International Wireless of Canada, which paid US$657m for the Minas Gerais state mobile company.

 

The Brazilian telecoms regulator Anatel has approved regulations to allow the country’s 5,561 municipalities to offer low-cost Wi-Fi internet access. Municipal governments wishing to set up Wi-Fi networks can do so.

The Wi-Fi networks operate on an unlicensed portion of the radio spectrum. This means that you do not need to bid on a piece of the spectrum. Wi-Fi operates on the same free and open spectrum that a cordless home telephone does. You don’t need to get spectrum license to use the home cordless phone, just like you don’t need one for Wi-Fi.

 

The main agency in Brazil that acts like the FCC is called Anatel. The General Telecommunications Law (Law 9472) of 1997 created the National Telecoms Agency (Agência Nacional de Telecomunicações; Anatel), to regulate and monitor the sector following its privatization. Its main function is to promote competition in the Telecom industry.

 

 

More info:

 

Ten years after opening, Brazil was already the third largest market in the world of mobile telephony, with 115 million devices (behind only China and the United States), and was the time to sell the frequencies for mobile 3G, called third generation, which will allow the transmission of data at high speed.  The result?   The wind of "Serjão" was even more expensive.  The operators paid $ 5 billion, offering goodwill average of 87%.

 

The Anatel estimates that since 2000 the operators have invested R $ 21 billion in the purchase of licenses and other $ 46.7 billion in the deployment of infrastructure. The forecast is that the agency an additional $ 10 billion will be invested over the next four years. "Our idea was to reduce the minimum price and encourage competition, which entails efforts of the companies for the quality," says the president of Anatel, Ronaldo Sardemberg.

 

The success shows, above all, that Brazil won expertise in the promotion of public auctions of concessions.  This was the fourth case of good success in less than three months. In October, in the granting of highways, the Spanish OHL implodiu the price of the toll.  In November, the 9th round of bidding of the National Agency of Petroleum raised $ 2.1 billion.  And, in early December, the consortium led by Odebrecht offered deságio of 35%, in an auction that was expected minimum difference in the relationship between the price-cap and the final price.  Auction today, in Brazil, is a synonym billing guaranteed for the Union

 

 

read more:  here 

 

 

 

 

 

NEWS

 

Oi close to taking over Brasil Telecom

Oi, the Brazilian telecommunications company, is at an advanced stage of negotiations to take over Brasil Telecom – a move that would create a national champion in an already relatively concentrated industry // - Jan 10 2008

 

 

 

Links from KookyPlan

 

see also:  Brazil internet market and Telecom in Latin America

 

 

 

 

 

External Links:

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