Brazilian telecom industry is growing steadily and has the potential for further growth that would create a competitive environment, making the services cost effective.
Agência Estado, a local news service in Brazil, reported that according to Ercio Zilli, President of Brazilian Mobile Operators Association (Acel), the telephone market in Brazil is likely to grow 10-12% in 2008, as per the news of Cellular News.
Zilli said that Brazil had around 118 Million mobile phones at 2007 end, 18% rise from 2006 end. As per the figures given by the country’s telecom watchdog Anatel, there were 115 Million mobile phones during the end of October 2007.
Brazil alone has one-third of total mobile users in entire Latin America. All the big mobile operators in the country have started giving GSM services and Vivo was the leader to provide GSM services in early 2007.
Zilli has expressed hope that the telecom industry would grow rapidly and there are enormous opportunities for telecom players to grow, as the mobile penetration in the country is just 60%. He also believes that the launch of 3G services would significantly contribute to the growth of the industry.
Industry experts are very optimistic about the industry’s growth because the initiatives taken by Brazilian operators have barred subsidizing mobile handsets and are now focusing on postpaid customers that give higher revenue than prepaid customers. The growth in the industry would attract foreign players, new features and services resulting in better experience for consumers.
Apart from this, some other fields that are likely to grow in 2008 include traffic information and Location-Based Services (LBS). There is continuous rise in demand of LBS for security reasons in Brazil and with the entrance of new players in the market, these services would get cheap and hence, people would be benefited.
Some renowned global handset manufacturers like Nokia, Ericsson, Motorola, and Gradiente have already entered the market and are catching the attention of teenagers. Industry experts say that the country has around 80% prepaid mobile subscribers who do not use service too much. Therefore, they advised the operators to make the services affordable.
According to Research Analyst at RNCOS, “The telecom sector of Brazil is rapidly expending offering a conducive environment for new players to establish themselves in the market and prepare a competitive ground to make the services affordable for the low income group.”
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Brazil IT and Outsourcing Industry Forecast to 2011
Emerging Rural Mobile Market in India
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