Infonetics: Investments Rebounding in Brazil for Fixed Broadband Infrastructure

"Spending on fixed broadband equipment in Brazil stalled in 2013 as telco operators slowed their purchases of new equipment after higher spending the prior two years. However, we expect the pause to be short-lived, as increased competition due to regulatory restrictions being lifted will drive new investments this year and beyond," notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. (Graphic: Infonetics Research)

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CAMPBELL, Calif.--()--Market research firm Infonetics Research released excerpts from its new PON, FTTH, DSL, and Cable Aggregation Equipment and Subscribers in Brazil market share, size, and forecasts report, which provides detailed analysis of the fixed broadband market in Brazil, tracking GPON, FTTH, and cable broadband equipment.

ANALYST NOTE

“Spending on fixed broadband equipment in Brazil stalled in 2013 as telco operators slowed their purchases of new equipment after higher spending the prior two years. However, we expect the pause to be short-lived, as increased competition due to regulatory restrictions being lifted will drive new investments this year and beyond,” notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

Heynen adds: “The wave of consolidation among Brazil’s broadband providers will continue, as Telefónica looks to solidify its market leadership and build scale, especially in the highly-competitive markets of Rio and São Paulo.”

BRAZIL FIXED BROADBAND MARKET HIGHLIGHTS

  • Brazil ranks in the top 10 broadband countries worldwide, with 22 million broadband users out of a population of ~200 million
  • Fixed broadband equipment revenue in Brazil dipped 11% year-over-year in 2013, to $175 million, as telco and cable operators slowed purchases
  • Broadband users are primarily located in the urban areas of Rio and São Paulo, Brazil’s 2 largest cities, where penetration rates are near 35%
  • Conversely, penetration rates in rural areas are low due to a history of underinvestment by the major private operators in the fixed access, backbone, and middle mile networks required to connect rural municipalities
  • Significant consolidation has taken place among Brazil’s largest operators, with América Móvil combining Claro, Embratel, and NET Servicos, the country’s largest cable operator
  • Arris is the overall broadband revenue share leader in Brazil in 2013, while Alcatel-Lucent led in DSL equipment revenue and Huawei headed PON equipment revenue
  • Infonetics forecasts fixed broadband revenue in Brazil to reach $288 million by 2018 as telcos continue G.Fast and GPON upgrades and cable operators roll out DOCSIS 3.1

BRAZIL BROADBAND REPORT SYNOPSIS

Infonetics’ annual broadband equipment and subscribers in Brazil report provides market size, market share, forecasts through 2018, analysis, and trends for PON, BPON, EPON, GPON, FTTH, FTTB, and DSL aggregation equipment and subscribers in Brazil. Companies tracked include: Adtran, Alcatel-Lucent, Arris, Calix, Casa Systems, Cisco, ECI, Ericsson, Harmonic, Huawei, Motorola, Zhone, ZTE, others. To buy the report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED RESEARCH

View Infonetics’ 2014 market research brochure, publication calendar, webinar schedule, report highlights, tables of contents, and more at www.infonetics.com/login.

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ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides here.

Contacts

Infonetics Research
Jeff Heynen, +1-408-583-3359
Principal Analyst, Broadband Access and Pay TV
jeff.heynen@infonetics.com
Twitter: @JeffHeynen

Release Summary

Excerpts from Infonetics Research's "PON, FTTH, DSL, and Cable Aggregation Equipment and Subscribers in Brazil" market share, size, and forecasts report. Led by analyst Jeff Heynen.

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Contacts

Infonetics Research
Jeff Heynen, +1-408-583-3359
Principal Analyst, Broadband Access and Pay TV
jeff.heynen@infonetics.com
Twitter: @JeffHeynen