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07/06/2010 |
Telecom represents 2.6% of the Brazilian families' expenses
Brazilian families spending, the average of $ 2,626 per month, according to a survey over families' budget carried out by the Brazilian Institute of Geography and Statistics (IBGE). Most of this is spent on housing (36%), food (20%) and transportation (20%).
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Expenditures on telecommunication services represent 2.6% of the total Brazilian family spending.
| Service | R$ |
% |
| Fixed Telephone | 27.18 |
1% |
| Mobile phones | 26.19 |
1% |
| Package: Fixed tel. TV and Internet | 15.05 |
0.6% |
| Telecom Services | 68.42 |
2.6% |
The average monthly family spending on mobile phones varies from R$ 6.00 for low-income families to R$ 133.00 for families holding higher incomes, average of R$ 26.20.
Note that it shows the average monthly spending per Brazilian domiciles. Differently, for example, of mobile operators' ARPU, which is defined as monthly average service net revenue per mobile access. Mobile operators' ARPU in Brazil reached R$ 24.00 in 2009. Considering taxes, the average monthly spending per access would reach R$ 36.30. We should observe that mobile operators' revenue includes corporative accounts, paid by companies.
The table below presents the distribution of telecom services spending by income.
Average monthly family spending per service |
|||
Reais (R$) |
Mobile |
Fixed |
Package with Telephone, TV and Internet |
Total |
26 |
27 |
15 |
Up to 830 |
6 |
5 |
1 |
> 830 to 1,245 |
10 |
14 |
2 |
> 1,245 to 2,490 |
18 |
26 |
7 |
> 2,490 to 4,150 |
33 |
43 |
20 |
> 4,150 to 6,225 |
51 |
51 |
42 |
> 6,225 to 10,375 |
78 |
58 |
54 |
> 10,375 |
133 |
69 |
96 |
It's interesting to notice that the average monthly family spending in Brazil on cell phones (R$26.2) is lower than the amount spent on electricity (R$ 60.27) and is close to the expenditures on items such as perfume (R$20.6) and hair dresser/manicure (R$20.5).
However, the total spending on telecommunication services – R$ 68.42 – is higher than the amount spent on electricity.
You could ask:
- Are Brazilian people spending too much in telecom services? Is there room to expand these expenditures?
- Mobile operators' ARPU is falling. What can invert this trend? What about increasing people income or the offer of new services?
- Will higher penetration of broadband increase the average family spending on telecom?
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