Brazil: With Telecom Growth Slowing, Telcos Seek Mergers to Strengthen their Presence in Latin America's Largest Market

Summary 'Brazil: With Telecom Growth Slowing, Telcos Seek Mergers to Strengthen their Presence in Latin America's Largest Market,' a new Country Intelligence Report by Pyramid Research, offers a precise, incisive profile of Brazil's mobile and fixed telecommunications and pay-TV markets based on comprehensive proprietary data and insights from our research in the Brazil market. Published annually, this presentation-quality, executive-level report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, mobile and pay-TV sectors, as well as a review of key regulatory trends. Key Findings - Brazil is the largest telecom services market in Latin America, with estimated revenue of US$60.1bn in 2014, a 3.1% decrease on the previous year, mainly as a result of a much weakened Brazilian real. If we assess revenue trends in local currency, the telecom services market in Brazil grew 3.2% in 2014. The market in Brazil faced pressure from a weak macroeconomic environment and a 25% cut in mobile termination rates (MTRs) in February 2014, which greatly affected operator financial results. We expect to see overall service revenue grow at a 1.8% CAGR over the 2014-2019 period. Besides pay-TV, broadband Internet and mobile data will contribute to market growth. - Further industry consolidation is on the horizon for the Brazil telecom services market. With the slowing of top-line growth and high operating expenses, Pyramid Research expects that a 4-to-3 mobile consolidation process will take place in the short term. - With the mobile penetration rate reaching close to 140% in 2014, operators expect the further penetration of 3G and 4G handsets will contribute to higher mobile data revenue and offset ARPU pressure from MTR declines. Synopsis This report provides an executive-level overview of the telecommunications market in Brazil today, with detailed forecasts of key indicators up to 2019. It delivers deep quantitative and qualitative insight into Brazil's telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Research's databases. The Country Intelligence Report provides in-depth analysis of the following: - Regional context: telecom market size and trends in Brazil compared with other countries in the region. - Economic, demographic and political context in Brazil. - The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more. - A demand profile: analysis as well as historical figures and forecasts of service revenue on the fixed telephony (including VoIP), broadband, mobile voice, mobile data and pay-TV markets. - Service evolution: a look at changes in the breakdown of overall revenue between the fixed/pay-TV and mobile sectors and between voice, data and video from 2014 to 2019. - The competitive landscape: an examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months. - In-depth sector analysis of fixed telephony, broadband, mobile voice, mobile data and pay-TV services: a quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period. - Main opportunities: this section details the near-term opportunities for operators, vendors and investors in Brazil's telecommunications and pay-TV markets. Reasons To Buy - This Country Intelligence Report offers a thorough, forward-looking analysis of Brazil's telecommunications and pay-TV markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies. - Accompanying Pyramid Research's Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Brazil's mobile communications, fixed telephony/VoIP, broadband and pay-TV markets, including the evolution of service provider market shares. - With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality. - The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Brazil's telecommunications and pay-TV markets. - The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Brazil.