Fixed-Mobile Convergence: Brasil Telecom Leverages Position to Offer Innovative Converged Services
In the last week of September 2004, fixed operator Brasil Telecom entered the mobile market with a GSM platform. The landscape was already crowded, with three to four players offering 2G and 2.5G services, depending on the region of the country. Nonetheless, Brasil Telecom successfully leveraged its wireline capabilities and relationships with businesses and government, in addition to launching an aggressive marketing campaign, to exceed all expectations for subscriber growth and market share.
In a crowded, maturing, and competitive marketplace, Brasil Telecom managed to differentiate its brand and attract customers by highlighting its fixed-mobile convergence capabilities. The company offers a variety of unique programs and discounts that take advantage of both its wireline and wireless networks.
Since launching its GSM service, Brasil Telecom increased its total subscription guidance twice. By the end of the first quarter of 2005, it had captured 5% market share in its area of operation with 1 million subscribers, and it now expects over 2 million subscribers by the end of 2005. Meanwhile, Brasil Telecom GSM has not jeopardized its ARPU levels by providing these aggressive programs and discount plans. The operator’s mobile ARPU compares favorably with other major mobile operators.
Brasil Telecom GSM has launched a mobile service differentiated by its fixed-mobile capabilities. Still, the operator has only converged at the commercial level, through bundled products and discounts. Brasil Telecom GSM’s commercial success so far, based on strong, previously existing relationships with businesses and the government in addition to an aggressive marketing campaign, could be emulated by other convergent carriers. Indeed, Telemar, another Brazilian fixed telecom with a mobile arm, launched its own version of an all-purpose calling card in April.
