Brazil with Net and GVT's broadband
Net and GVT offer fixed broadband in 233 Brazilian cities.
These 233 cities (4.2% of the Brazilian total) concentrate 48% of the population and 76.8% of the fixed broadband accesses (SCM).
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There's a big difference between these two groups of cities:
Net and GVT implemented high speed broadband networks in these cities competing with the ADSL networks of the fixed telephony incumbents (Oi and Vivo) that offer slower.
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These figures show the importance of the competition promoted by these operators for the expansion of fixed broadband in Brazil. Net is the market share leader inside the group of cities where Net and GVT are present.
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Oi faces competition imposed by Net and GVT in the cities inside its granted area, while Vivo has Net as its main competitor.
Note that a possible acquisition of GVT by Vivo has little impact on this scenario, since only 20 of the 154 cities covered by GVT are inside the state of São Paulo.
In other cities, Oi had 50.8% of the fixed broadband accesses and Vivo has 23.4%. Inside these cities the presence of other providers operating with technologies such as radio spread spectrum is strong and represents 16.2% of the total accesses in these cities.
Fixed broadband density in Brazil reached 11.6 accesses /100 inhab. in Jun/14, while fixed telephony hit 22.6 fixed telephones accesses/100 inhab.
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Kept the current trends, it'll be necessary 10 years to fixed broadband density reach the same level of density shown by fixed telephony in Brazil.
The growth of fixed broadband isn't getting acceleration, on the contrary, net adds accumulated in the first semester of 2014, were smaller than the ones registered in the same period of 2013. The acceleration of growth goes through the amplification of the group of cities by competitive offer of high-speed broadband.
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