The Brazilian mobile market is not just one of the world’s largest with a population of almost 200 million people, it is also one of the markets where operators – despite an effective consolidation – are still struggling due to low margins and high SAC, on a market where most customers have a low ARPU.
During the past 2.5 years the national regulator Anatel has been through a process where they have prepared the legislative framework for MVNOs and over the coming months a number of hearings will finalise these legal preparations, whereafter Brazil will join the list of countries that allow MVNOs to launch and do business, Strand Consult says.
In practice the Brazilian mobile market is divided between four main players (Vivo, TIM, Claro and OI) and all four operators need to increase their customer base and revenue, while at the same time face large investments in expanding their mobile network. Capacity is already a large issue in Brazil – and is an issue that will continue to grow in the coming years as the demand for voice traffic and mobile broadband keeps on growing.
The operators Brazil Telecom and OI have admitted that on a market with decreasing prices and increasing costs of building and opearting future mobile networks, they need a market share that is greater than their combined individual shares. OI’s acquisition of Brazil Telecom is yet another example of consolidation in a country where market players have been consolidating for many years.