08/04/2008


Will Net be the largest broadband operator in Brazil?

 

Brazil ended the 2nd quarter of 2008 (2Q08) with 8.9 million broadband accesses and density of 4.7 accesses/100 inhab (more details). Teleco estimates that were added 641 thousand new accesses in the quarter.

 

The Net is leading the growth of broadband in Brazil, surpassing Telefonica, Oi and Brasil Telecom (BrT) in net additions.

 

 

This performance did Net superass BrT in the 2Q08 and ended the quarter closed to Oi.

 

 

Broadband Accesses

 

Thousands
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
Telefonica
1,689
1,811
1,936
2,068
2,166
2,295
Oi
1,182
1,266
1,393
1,518
1,638
1,804
Net
984
1,120
1,288
1,423
1,588
1,798
BrT
1,384
1,453
1,523
1,568
1,637
1,710
GVT
162
186
213
246
292
352
Others
639
581
598
895
963
966
Total
6,040
6,417
6,951
7,718
8,284
8,925

 

Oi has not been surpassed by Net because of the incorporation of 53 thousand broadband accesses of Way TV to its base. Note that Net would have taken the 2nd position if it had already incorporated the 56 thousand broadband subscribers of Big TV, that it is acquiring.

 

Be held the current trends, Net can surpass Oi in the 3Q08 and Telefonica in 2009, becoming the largest broadband operator of Brazil.

 

The growth of the Net is the result of a successful triple play strategy deployed by the operator that offers packages containing Pay TV, broadband and VoIP telephony (Net Fone).

 

 

It seems there is ample room to grow the broadband network. In the 2Q08 the penetration of broadband in homes in that can be served by the Net connections bidirectional was only 27%. Among the Net Phone customers, 44% have only Net Phone + broadband.

 

Even operators of fixed telephony, mainly Oi and BrT seem to be encountering difficulties to expand at a faster rate to its large base of broadband subscribers. Telefonica, in addition to the acquisition of the operations of MMDS of TVA deployed a network of fiber optics in Jardins in Sao Paulo and is doing deployments of fiber networks in condominiums of high purchasing power.

 

Finally, it is important to remember that it can change with the growth of broadband wirelesss with 3G or Wimax which should have their frequencies homologated by Anatel in 2009.

 

The effect of the acquisition of Oi by BrT should also make it more difficult for Net to lead broadband in Brazil. Furthermore, the position of Net can be strengthened in a scenario of consolidation with Embratel.

 

You could ask:

  • Will Net be the largest broadband operator of Brazil?
  • Why is Net growing more than fixed telephony operators?
  • How can accelerate the growth of broadband in Brazil?
  • Will 3G be the leader broadband technology in Brazil?

 

To send us a commentary, click on: teleco@teleco.com.br

 

Please let us know if you authorize the publication of your commentary.

 

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