Excerpt Communications Markets in Brazil

This report is part of Pyramid Researchs series of

Latin America

Country Intelligence Reports

February 2009 Edition Fernando Faria, Senior Analyst

Table of contents
Section
Executive summary Market and competitor overview Brazil in a regional context Economic, demographic and political context Regulatory environment Demand profile Service evolution Competitive landscape Major market players Segment analysis Mobile services Fixed services Pay-TV services Convergence Identifying opportunities

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Report highlights
We estimate that total telecom revenue in Brazil in 2008 reached US$55.8bn, up $7.4bn from 2007, fueled by a jump in mobile penetration (79% in 2008, from 65% in 2007) and by growth in data services per subscriber (14% of total ARPS, up from 9% in 2007). Following these changes, we have revised our market size estimates going forward, and we anticipate data services, fixed and mobile, will increase the total market size (growing at a 2.9% CAGR through 2013) despite the decrease in fixed and mobile voice revenue. Total revenue is projected to reach nearly $64bn by 2013. Communications Markets in Brazil offers a precise, incisive profile of the countrys converged telecommunications, media and technology sectors based on proprietary data from our research in the Brazilian market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMAX, IPTV and VoIP. Published annually, this executive study provides a holistic view of the Brazilian communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risks factors. Key findings of the report include:

Voice services represented 83% of total fixed revenue in 2008; we expect this market to shrink at a CAGR of -4.1% from 2008 through 2013 as a result of competitive pressure and the additional discounts for bundled packages. Consolidations continues to reshape the Brazilian communications market. After acquiring Brasil Telecom, Oi became the market leader in terms of total revenue, but we expect its dependence on fixed revenue to limit its growth prospects.

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Report highlights (contd)

BRAZIL COMMUNICATIONS MARKET (US$bn), 2006 2013

$70
Market revenue (US$ billions)

IPTV Pay-TV

$60
Broadband Internet

$50
Dial-up Internet

$40 $30
$20 $10 $0

Fixed VoIP Fixed circuitswitched Voice Mobile data Mobile voice

2006A

2007A

2008A

2009E

2010E

2011E

2012E

2013E

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