How to accelerate broadband growth in Brazil?
Teleco estimates that Brazil finished the third quarter of 2008 (3Q08) counting 9.6 million fixed broadband accesses and a density of 5.0 accesses/100 inhab.
Besides these fixed accesses, there were 1.95 million 3G mobile broadband accesses (Anatel), reaching a density of 1.1 accesses/100 inhab.
Teleco's forecasts indicate that Brazil might finish 2008 counting 10.2 million fixed broadband accesses, what would correspond to a density of 5.4 accesses per inhab. These densities are still very far from the 30-35 accesses/100 inhab. found in Europen and Asian countries.
Kept the current tendencies, Brazil might finish 2009 counting 12.5 million fixed broadband accesses and a density of 6.4 accesses/100 inhab.
The competition promoted by Net stimulated growth
Net, holding a promotion of triple play package (Pay TV, Broadband and Telephony), became the main competitor for Telefonica, Oi and Brasil Telecom (BrT), in broadband offer in Brazil.
Net surpassed Oi in 3Q08 and became the second in market share in Brazil.
This trend was already been outlining since 2Q08, when Net overcame BrT.
Net is leading broadband growth in Brazil counting much superior net adds in comparison with other operators.
Oi and BrT are facing difficulties to expand, in a faster pace, their base of broadband subscribers. Telefonica seems to have more success. Besides the acquisition of MMDS TVA operations, the company implemented an optical fiber net in the village of Jadins in São Paulo and is implementing optical fiber nets in condominiuns of high purchasing power.
Net's broadband offer is, however, geographically limited to areas of more purchasing power in big cities.
The use of wireless technology might accelerate growth
The growth of competition and broadband offer in areas that weren't yet served passes necessarily through the use of wireless technology (3G and WiMax).
The cellular 3G is already available for more than 34% of the Brazilian population and the number of mobile broadband accesses might overcome the fixed in 2009. It's important to remember, however, that only part of these mobile accesses are actually used to this purpose. In Portugal, the percentage of people that used it in a month is about 20-30% from the total of mobile broadband access.
WiMax, was put in an awaiting pace while expects for the frequency auction in 3.5 GHz.
The frequencies availability may become even more a limit for the broadband growth in Brazil. New technologies, such as LTE, will request more spectrum to offer speedy enough for multimedia services.
As it's happening to cellulars, the competition might be the engine that will accelerate broadband growth in Brazil. This growth can be reached with wireless technology that will, however, depend on the spectrum availability in the country.
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