What makes Brazil a leader in telecommunications?Brazil’s stronghold in telecommunications can be attributed to a variety of factors. Along with having a rapidly growing digitalized population, it also has one of the most modernized telecommunication infrastructures compared to regional counterparts. Since the 1990s, when major state-owned telecom companies were privatized, fixed and mobile phone lines expanded across the country, creating a robust marketplace.
In Brazil, as in Latin America, the revenue generated by the telecommunications sector is far more concentrated compared to other regions around the world. Four major Brazilian telecom companies are responsible for the lion’s share of the whole sector’s revenue: Telefônica Brasil, Claro, Oi, and TIM. Collectively, they make up for over 70 percent of the revenue generated by the top 25 national IT and communications companies.
How do other regional markets compare?Despite Brazil’s affluence in telecommunications, Mexico-based América Móvil dominates the Latin American telecom sector in terms of revenue. In Brazil, the Mexican conglomerate owns mobile telephony provider Claro, which is the second largest revenue generating IT and telecom company in the domestic market.
According to the internet affordability index, which evaluates broadband costs and regulatory frameworks around the world, Brazil ranked eighth in Latin America, surpassed by Colombia and Costa Rica by at least ten index points. When it comes to broadband average revenue per user, Brazil also ranks lower than countries such as Argentina and Colombia. Comparatively, Brazilian companies earn three dollars less per user than the average Colombian provider of residential fixed broadband.