According to global research firm, Frost & Sullivan, Brazil telecom services market revenue is expected to increase from $68.07 billion in 2013 to $83.72 billion in 2018 registering compound annual growth rate of 4.2 per cent.
The research firm states that the operators will focus on tapping business opportunities in segments such as pay TV, fixed and mobile broadband, and value-added services. With a view to net in more subscribers, the service providers in Brazil are extending bundled offers to users. In addition, operators are also exploring new business models such as over-the-top (OTT) video services and delivering machine-to-machine and payment applications through mobile networks to create additional revenue streams for themselves.
Frost & Sullivan further claims that the deployment of 3G, 4G and fibre-optic networks which require high bandwidth and throughput is unlocking new possibilities for telecom applications and services for the Brazilian operators. Further, the availability of economical products in large part due to huge competition in the pay TV and broadband space is expected to encourage the uptake of telecommunication solutions and services among lower income group consumers.
However, the research firm states that even as operators are exploring new business models to augment their revenues, regulatory issues are impacting the growth of smaller operators which are burdened by higher taxes and spectrum costs.
Frost & Sullivan concludes that the government along with the Brazil?s telecom regulator, Anatel need to revisit the country?s telecom policy to help operators leverage business opportunities being offered by growing broadband market and OTT services.
