Brazilian telecommunication service providers invested $2.29 billion (R$4.7 billion) in the first quarter of 2012, according to TeleBrasil, the Brazilian association of telecommunication companies. The amount represents the total investment made in fixed and mobile telephony, broadband and pay-TV from January to March this year and shows an increase of 43.9% over the same period last year.
The investments were mostly made to expand and modernize infrastructure as well as to improve service quality.
During the first quarter of 2012, the telecommunications industry produced $25.78 billion (R$53.1 billion) in gross operating revenue, representing a growth of 10.8% over the same period last year, according to Telebrasil. In 2011, the telecom sector’s gross operating revenue reached $97.69 billion (R$201.2 billion), which is equivalent to 4.9% of Brazilian GDP.
The sector’s performance also translates into jobs, which at the end of first quarter totaled 489,300.
Since 1998, the year of privatization, the telecommunications industry has invested $123.8 billion (R$255 billion), including payment for grants to provide services. Last year alone, the industry invested $10.53 billion (R$21.7 billion), the second largest total in the history of Brazilian telecommunications.
From January to March 2012, users of telecommunications services paid $7.1 billion (R$14.7 billion) in taxes. Telebrasil noted that these taxes were directly levied on citizens and impacted the prices of services in more than 45% of cases.
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