Brazil Gets Serious about Broadband

April 28, 2011

Brazilian President Dilma Rousseff is serious about meeting the target set by the National Broadband Plan (PNBL) to connect 72% of all households to broadband by 2014.

With the establishment of a new Digital Inclusion Secretariat in the Ministry of Communications, the government made it clear that reaching the targets set by the PNBL are a priority for Brazil’s socioeconomic development.  The new Digital Inclusion Secretariat is responsible for coordinating all digital inclusion programs of the government, including Community Telecenters, and to ensure that these are aligned with the PNBL. This move further reinforces the government’s commitment to universal access to broadband internet and sets up a framework that focuses on infrastructure development — particularly a nationwide fiber backhaul network and ICT capacity building — as central to broadband access and use, especially in rural areas and by low-income families.

Pyramid Research believes that the PNBL will boost broadband penetration and be a driver for development in the sector, both in the fixed and mobile sectors. As reported in our recent Country Intelligence Report, Brazil: Mobile Data and Prepaid Mobile Drive Unprecedented Telecom Revenue Growth by 2015, we estimate broadband penetration of the population to reach 24% in 2015, with mobile broadband being a main driver of growth. While this estimate falls well short of the PNBL’s goal, it is important to note that such growth and related economic benefits would be difficult without the proposed investment and commitment from the government (see the Latin America Telecom Insider, Brazil Puts Its National Broadband Plan into Hyperdrive). 

Fixed and mobile broadband subscriptions and penetration, Brazil 2009-2015

*Data cards only

Strong growth in mobile broadband will facilitate the use of multiple devices, such as smartphones and tablets, to achieve higher penetration rates and increase access to the Internet. Therefore, if new devices and new means of communication are considered, it is possible that the PNBL goals will be met by 2014. 

To identify market trends and explore these growth opportunities in the Brazilian mobile broadband market, Pyramid Research is organizing a conference — Making Money on Mobile Broadband — to take place in Sao Paulo, Brazil, from June 15-16, 2011.  By focusing on growth opportunities, new business models, next-generation networks and technologies, and innovative solutions to expand service options and adoption, Pyramid Research believes this event will provide a unique forum in which to discuss how mobile broadband will contribute to growth and digital Inclusion in Brazil.

— Sonia Jorge, Research Director

Related resources:

Making Money on Mobile Broadband Brazil
Live Event, June 15-16, 2011, Sao Paulo, Brazil
Making Money on Mobile Broadband offers a unique opportunity for learning, knowledge exchange and networking for the main industry players in Brazil, including telecom operators, hardware and software vendors, equipment manufacturers, government and regulatory agencies, service providers and others.

Brazil: Mobile Data and Prepaid Mobile Drive Unprecedented Telecom Revenue Growth by 2015
Country Intelligence Report published March 2011
The Brazilian telecom market generated $67.42bn in service revenue in 2010. Despite the global economic crisis that constricted the market in 2009, telecom in the country is a fast-growing market, and Pyramid Research expects it to grow at 17.6% year-on-year in US dollar terms in 2011. This growth will come mostly from mobile services.

Brazil Puts Its National Broadband Plan into Hyperdrive
Latin America Telecom Insider published September 2010
This Telecom Insider examines the impetus behind the government’s decision to move forward with the PNBL. It also discusses the two main obstacles affecting broadband development today -- availability of broadband infrastructure beyond urban areas and the high price of access -- and how the plan is seeking to address each of these obstacles.