Embratel/Net led growth in broadband and Pay TV in 2014
Embratel/Net led the growth of fixed broadband (SCM) and pay TV in 2014, counting net additions of 941 thousand accesses and 525 thousand respectively.
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GVT was placed in the second position in fixed broadband net adds and Oi was second in pay TV net adds.
We can analyze below he evolution of these services in 2014.
Fixed Broadband (SCM)
Brazil ended 2014 counting 24.0 million fixed broadband accesses (SCM) and density of 11.8 accesses/100 inhab.
This was the smallest growth in 2014. Net adds of 1.8 million in the year were inferior to 2013 (2.4 millions).
Embratel/Net and GVT, which have bigger offer of high speed fixed broadband accesses, gained market share in 2014. On the other hand, Oi and Vivo lost it.
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Embratel/Net is the leader in accesses with speed between 2 and 12 Mbps. GVT is rules among accesses with speed between 12 and 34 Mbps.
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Oi leads accesses between 512 kbps and 2 Mbps, while Vivo is first among accesses with lees of 512 kbps.
In 4Q14, the biggest part of the accesses started to have speeds superior to 2 Mbps (62.8% in Dec/14).
At Embratel/Net, 79.5% of the fixed broadband accesses have speeds superior to 2 Mbps. At GVT it reaches 99.8%. At Oi this participation hits 45.6% and Vivo 50.9%.
Note that, in the United States, FCC decided to consider as broadband only those accesses that have speeds superior to 25 Mbps.
Pay TV
Brazil ended 2014 with 19.6 million pay TV accesses, 11.9 million of them via satellite (DTH) and 7.5 million cable TV.
Despite the explosive growth shown by DTH between 2010 and 2012, it wasn’t repeated in the last two years, what can indicate that pay TV may present smaller growth in the coming years.
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Note also that the liberation of authorizations to pay TV with the SeAC, which occurs since the end of 2012, had little impact on cable TV net adds in 2013 and 2014.
The scenario of pay TV market share has been kept stable in the last years. Embratel/Net leads with 52% of the market share, followed by SKY with 28.8%.
Embratel/Net’s market share loss in 2014 was aggravated by turning off clients in its service via satellite (Claro TV), what drove to negative net adds of -319 thousand pay TV accesses in Dec/14.
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| Market Share | 2011 |
2012 |
2013 |
2014 |
| Embratel/Net | 54.9% |
52.2% |
53.6% |
52.0% |
| SKY | 29.8% |
31.2% |
29.8% |
28.8% |
| Oi | 2.8% |
4.6% |
4.6% |
6.7% |
| GVT | 0.3% |
2.6% |
3.8% |
4.5% |
| Vivo | 5.4% |
3.7% |
3.3% |
3.9% |
Oi, GVT and Vivo compete for the third position having market share smaller than 10%. Vivo may hold the third position due to the acquisition of GVT.
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The bet on DTH led Oi and GVT to the growth of pay TV accesses in the last years. Vivo, which focused on IPTV, presented smaller growth offering this technology only in its FFTH network in São Paulo and more eleven cities of the metropolitan region.
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