Brazilian telecommunication providers reached a record investment level in 2012 with inflows of U.S.$12.53 billion (R$25.3 billion). The money was mostly spent on network expansions, increasing coverage and improving quality of services. The total investment made last year represents an increase of 11% compared to 2011, 54% higher than the average annual contribution made since the privatization of telecommunications in 1998.
According to Telebrasil, the Brazilian Association of Telecommunications, private providers invested more than U.S.$142 billion (R$284 billion) over the past 15 years, including grant payments. By today’s standards, this investment represents about U.S.$200 billion (R$400 billion). “All this investment over the years has enabled a rapid growth in the number of users, which reached a total of 343 million, considering the services of fixed and mobile telephony, broadband and pay TV,” stated TeleBrasil.
Analysys Mason released new research predicting that telecom retail revenue in Latin America will grow at a compound annual growth rate (CAGR) of 3.3% between 2012 and 2017. Mobile services will account for about 80% of this growth during the forecast period—increased mobile handset data, and mobile broadband service usage will boost mobile retail revenue at a 4.8% CAGR, while fixed retail revenue will grow at a 1.4% CAGR. The main contributors to revenue growth during 2012–2017 will be mobile broadband (growing at a CAGR of 15.8%), mobile handset data (a CAGR of 12.6%) and fixed broadband (6.6%).
In a statement, Pablo Iacopino, Analysys Mason analyst, said that the relative value of the Latin American telecom market is increasing as a result of higher revenue growth compared to developed markets. He explained that Brazil is the largest telecom market in Latam in terms of telecom retail revenue, generating U.S.$62 billion in 2012, and it is the fourth-largest market in the world after the U.S., China and Japan.
Latam LTE road map update
Sixteen LTE networks have been launched commercially in nine countries in Latin America and the Caribbean (Antigua-Barbuda, Bolivia, Brazil, Colombia, Dominican Republic, Mexico, Paraguay, Puerto Rico and Uruguay), according to the Global mobile Suppliers Association (GSA). Globally, 156 carriers have launched commercial LTE services in 67 countries with 98 commercial launches happening in the past year. The GSA predicts that by the end of the year, there will be 244 commercial LTE networks operating in 87 countries.
In Chile, the carrier Entel announced it has selected Ericsson as the sole supplier of its 4G/LTE network, and the companies expanded their partnership for Entel’s 2G and 3G networks. This includes the multi-standard radio access network, Evolved Packet Core with Evolved Packet Gateway on the SSR 8000 family of Smart Services Routers, operation and support system, and backhaul transport design. The amount of the deal was not disclosed.
In Brazil, the telecommunications research and development institution CPqD unveiled Latin America’s first laboratory for testing and measuring LTE technology for the 450MHz frequency.
CPqD has been working on using LTE technology in the 450 MHz band for a while. In a March 2012 interview with RCR Wireless News, Fabrício Lira Figueiredo, wireless technologies manager at CPqD, said that the firm was testing the technology.
While telecom operators are in the beginning stages of deploying LTE networks in Brazil and Chile, government telecom agencies in other Latin American countries still have a lot of work to do. In Peru, the auction that will allow LTE network deployment is expected to take place in July. The Agency for Promotion of Private Investment (ProInversión) will allocate two blocks in the bands of 1,710 to 1,770 MHz and 2,110 to 2,170 MHz, also known as the AWS band.
More Latin American numbers
Brazil’s telecom regulator Anatel forecasts that the country will jump from its current 263.04 million connections to 1 billion by 2018, driven by data and machine-to-machine accesses. The prediction was made by Bruno Ramos, Anatel’s mobile, data and satellite services VP, during last week’s TM Forum Latin America Summit.
Anatel’s latest report shows that at the end of February, mobile penetration reached 133.25%. Telefónica’s Vivo led with a 28.83% market share, followed by TIM (26.88%), Claro (25.12%) and Oi (18.83%). Although 2G GSM still accounts for the majority of lines (72.31%), WCDMA achieved a 22.4% market share. Mobile broadband terminals totaled 65.68 million.
In Ecuador, Fabian Jaramillo, from the country’s superintendence of telecommunication, said that mobile lines had achieved 111% penetration. There are 17.237 million mobile lines for the country’s population of 15.542 million. Claro holds the biggest market share, owning 69% of all the mobile lines. Claro is followed by Movistar with 29% and the state-owned company CNT EP with 2%. “The monopoly is a concern, that’s why Claro was named a dominant player years ago,” Jaramillo said.
In Chile, the country’s telecom watchdog agency announced that Internet access penetration increased from 30% to 41% in the past 12 months, achieving a total of 5 million connections. Smartphones drove the increase in mobile Internet accesses, and they currently account for 77% of total mobile navigation.
More Latin American news:
- Mexico’s lower house of congress passed a package of sweeping reforms for the telecommunications sector. The bill passed 414 to 50 with eight abstentions. The reform package is designed to promote competition in the telecom market. The country’s telecom sector is currently controlled by América Móvil, the leader in both mobile and land lines, and Grupo Televisa.
- Vivo, Brazil’s unit of Telefónica, and the Medical School Foundation have joined together to develop eHealth solutions.
- Tigo announced it is offering mobile access to Facebook, regardless of mobile handset type, using its Facebook for SIM solution provided by Gemalto’s embedded software application. Tigo has 6.3 million subscribers.
- Digicel announced its intention to launch private placement of U.S.$250 million of 6.0% senior notes due in 2021. Digicel previously issued U.S.$1 billion of 6.0% senior notes due in 2021 earlier this year.
Be sure not to miss what’s going on across wireless Latin American market. Check out RCR Wireless News wrap ups.
