Teleco Blog

14
7/2024

Data Consumption and Oiâ€™s D-Day

Eduardo Tude

The average data consumption per user on fixed broadband in Brazil was more than 50 times greater than on mobile broadband in 1Q24, which confirms that despite the Smartphone being the main access device, the majority of data consumed occurs in connections via WiFi.
The difference is big, but mobile consumption has grown 24.8% per year in the last 4 years and fixed broadband (13.5%).

Oi's D-Day

This Wednesday (Jun, 17^th) is the date for submission of proposals for Oi Fibra customers. Brasil Tecpar, Ligga and Vero are qualified to participate in the process.
Proponents will be able to purchase for a lower amount (as long as it's Cash) than that guaranteed by V.tal (R$ 7.2 billion in shares). If this happens, we will see a change in the fixed broadband competitive scenario in Brazil.
A decree was published establishing that authorization from the Advocacy General of the Union (AGU) is necessary “for the entry of bodies and entities of the federal public administration into consensual dispute resolution procedures within the scope of the Federal Court of Accounts filed as of July 4^th, 2024”.
Although Oi and Vivo's processes are not directly affected by the decree, it was already anticipated that it would have to be approved by the AGU, due to the debt of R$ 7 billion in fines that Oi owes to the Union.
AGU may, for example, demand that Oi gives up the arbitration process in exchange for the debt. The problem is that V.tal expects to receive R$ 5 billion from arbitration to compensate for the R$ 5 billion in commitments it assumed.
Oi's ON share lost 5.3% during the week and its PN lost 2.1%. Ibovespa raised 2.1%.
Oi's ON share presented loss of 7.7% in the year and the PN also lost 7.7%.

Anatel

Anatel granted secondary use of the 708 to 718 MHz / 763 to 773 MHz band to:
Brisanet in 401 cities of 12 states, from Northeast and Middle-West, besides Brasília.
iez! Telecom in 290 cities inside the states of Minas Gerais, Rio de Janeiro and Espírito Santo.
TIM had also granted by Anatel the right to secondary use of bands at 850,900, 1,700 and 1,800 MHz in 938 cities in seven states.
Anatel opened a consultation on the end of homologation of 2G and 3G devices that don't support 4G.

More Highlights

Brazilian Development Bank (BNDES) approved financing of R$ 148.33 million from FUST to Alloha (Giga+ Fiber).
Ericsson's revenue showed an annual drop of 7% in 2Q24, reflecting the reduction in investments in 5G networks, mainly in the United States.
The global enterprise IoT market reached US$ 269 billion in 2023, with growth of 15% in the year, according to IoT Analytics, with 51% in HW, 25% in services, 22% in SW and 2% in security. It's expected to grow 12% in 2024, before accelerating again in 2025.

Coming Weeks

June 17^th: Sale of Oi Fiber
June 17^th: Claro's 2Q24 Result
June 29^th: Vivo's 2Q24 Result
June 30^th: TIM's 2Q24 Result

Eduardo Tude

President and partner at Teleco (consultancy company), works since 2002 as analyst of Telecom market, coordinating consulting projects, publishing weekly articles, preparing sector reports and presenting workshops.

Telecom Engineer (IME 1978) and MSc. in Telecom Engineering (INPE 81), Tude is member in the Mobile World Congress’s judging commission for the Global Mobile Awards, in Barcelona, and was also a visiting specialist professor at Unicamp.

Tude had many positions in the management of Telecommunication companies in areas like Mobile Systems (Ericsson), Optical Networks (Pegasus Telecom) and Satellites (INPE).

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Data Consumption and Oiâ€™s D-Day