Internet of Things (M2M) in Brazil
Note: Updated on 01/20/2014 considering accesses of Dec/13.
The Internet of Things, based on communication between devices, or Machine-to-Machine (M2M), is likely to have strong growth in the coming years.
In 2013 there were 3 billion M2M accesses in the world, being 10% of this total operated through mobile networks.
According to the consultancy Machina Research, M2M accesses via cellular represented 2% of the total of mobile accesses in the world in 2012 and this participation may increase to 22% in 2022.
In Brazil, there were 8.3 million M2M accesses operating through cellular networks by the end of 2013, what represented 3% of the total of mobile accesses in the country.
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The mobile machines, used in payments using credit/debit card in points of sale, are the most well-known example of M2M.
Other examples are the services used to track vehicles which are offered by insurance companies. This application may increase in January 2015 when the resolution set by Denatran (National Traffic Department in Brazil) becomes effective determining that all news vehicles must to have on-board tracking and monitoring modules.
There are even an increasing number of telemetry services, like some related to health, industrial automation and management of electric and water networks, those can eventually use mobile network to communicate M2M data.
Claro is the company having the best position inside this market by holding market share of 4.9% in 2013.
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Vivo is also growing inside the market. The carrier ended the year having 28.5% market share. TIM and Oi lost m. share in 2013.
In "others" we included Porto Seguro, which had 99.6 thousand M2M accesses in 2013, CTBC (55 thousand accesses) and Datora (5.4 thousand). Porto Seguro and Datora are MVNOs and use TIM's network. In Aug/13, Datora announced an agreement with Vodafone and this M2M operation started to be called Vodafone Brasil.
The area code 19 (Campinas) and 11 (São Paulo) concentrate 41% of the M2M accesses registered in Brazil.
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DDD means area code
Among the obstacles to the growth of M2M solutions in Brazil are the Inspection Fees paid for each device operated by the carriers.
The Law enacted in 2012, which reduces the Fees for Installation Inspection (Taxa de Fiscalização de Instalação - TFI) from R$ 26.83 to R$ 5.68 and for Operation Inspection (Taxa de Fiscalização de Funcionamento - TFF) from R$ 13.42 to R$ 1.87, waits for the regulation approvement to become effective.
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