07/31/2018


The growth of fixed broadband in 1S18

 

Competitive operators (others except Claro, Vivo and Oi) were responsible for fixed broadband growth in the first semester of 2018 (1S18), registering net adds of 1.2 million accesses (80% from the total).

 

 

 

 

Fixed broadband presented a total of 1.4 million net adds in 1S18, more than in 1S17 (1.1 million). Fiber accesses implemented by competitive operators and by Vivo drove this growth.

 

 

 

 

Accesses based on copper wires (xDSL) are still the majority but are losing stake.

 

 

 

 

Fixed broadband accesses through fiber and cable modem, which offer higher speeds already represent 45% from the total accesses, what make possible the migration to higher speeds. Accesses with speeds superior to 12 Mbps represent 46% of the Brazilian fixed broadband accesses already.

 

 

 

 

Claro is the Market leader in fixed broadband in Brazil, followed by Vivo. However, competitive operators (Clich here to see who are them) occupy the third position already overtaking Oi and are getting close to Vivo in market share.

 

 

 

 

Brazil ended 1S18 holding density of 14.5 fixed broadband accesses by 100 inhabitants, what is low when compared with the 30-40% in the United State and in countries of Western Europe. However, the service has advanced in Brazil without significant incentive from Government and heavy tax burden, differently from these other countries. Competition has been the engine for broadband growth in Brazil.

 

It’s also important to say stress that a Broadband Plan to Brazil shouldn’t aim in implementing fixed broadband in all residences. The lowest income population in Brazil might prefer to have a mobile broadband access in their homes, just as it happened in the cell phone. In 2017, 61% of the Brazilian domiciles had internet access, 64% from them through fixed broadband and 25% through mobile broadband. (IBGE’s survey)

 

 

You couls ask:

  • Should Brazilian Government allocate resources to encourage broadband expansion in the country?
  • How important is the approval of the Law Project 79 in broadband expansion in Brazil?
  • What’s the future of competitive operators? Will these operators conquer the leadership in fixed broadband?
  • Is the intense consolidation of competitive operators imminent?

 

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