Brazil IT & Telecom Market Overview
Futurecom 2009


Daniel Ramos
October 2009
Brazilian IT & Telecom Market Overview
  Agenda



        1       What makes Brazil a good market?


        2       Braz...
What makes Brazil a good market?

     Economy (2008 facts):

     • Largest national economy in Latin America and the wor...
What makes Brazil a good market?

    Population (2009):
    • 191 million: 80% urban and 60% high and middle class.
    C...
Brazil vs. Canada GDP Growth Rate
(%)




Brazilian IT & Telecom Market Overview - Futurecom 2009   5   Source: IBGE (Inst...
Brazil vs. Canada GDP Growth Rate
(%)




Brazilian IT & Telecom Market Overview - Futurecom 2009   6   Source: IBGE (Inst...
Brazil vs. Canada Population
(Millions of people)




                   58%                                            67...
Brazil vs. Canada Population
(Millions of people)




Brazilian IT & Telecom Market Overview - Futurecom 2009   8   Source...
Brazil Exports & Imports Growth Rates
(%)




Brazilian IT & Telecom Market Overview - Futurecom 2009   9   Source: The Wo...
Brazil Canada Trade
(millions)




Brazilian IT & Telecom Market Overview - Futurecom 2009   10   Source: Statistics Canad...
Brazil ICT & Telecom Market
Structure




                                                          Merge /Acquisition Com...
Brazil Mobile Telephony Market Share
2009 (%)




                                                               Mobile Vo...
Brazil Mobile Number of subscribers
(millions)




                                                                       ...
Brazil Mobile Average Revenue per
Subscription
(USD$)




Brazilian IT & Telecom Market Overview - Futurecom 2009   14   S...
Brazil Broadband Market Share
2009 (%)




                                                               Mobile Broadband...
Brazil Internet Broadband Market
(millions)




                                                                          ...
Brazil Fixed Telephony Market Share
2009 (%)




                                                               Mobile Fix...
Brazil Fixed Telephony Lines in
Service
(millions)




                                                               Port...
Brazil Public TV Market Share
2009 (%)




Brazilian IT & Telecom Market Overview - Futurecom 2009   19   Source: eXpancom...
Brazil Paid TV Market Share
2009 (%)




                                                                    IPTV



Brazi...
Brazil Paid TV Subscribers
(millions)




                                                                Digital TV
     ...
Brazil IT & Telecom Market Share
Who will win the battle?


                                                              ...
Brazil IT & Telecom Trends
Conclusions & Opportunities

• Industry consolidation,merging and acquisitions;

• Wireless con...
Obrigado!


          Market Resear ch
          Busi ness Dev el op ment
          Tr ad e




            eXpancom (Cana...
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eXpancom Brazilian Ict & Telecom Market Overview 2009

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eXpancom Brazilian Ict & Telecom Market Overview 2009

  1. 1. Brazil IT & Telecom Market Overview Futurecom 2009 Daniel Ramos October 2009
  2. 2. Brazilian IT & Telecom Market Overview Agenda 1 What makes Brazil a good market? 2 Brazil & Canada Trade 3 Brazil IT & Telecom Market Structure 4 Brazil IT & Telecom Figures (Mobile, Fixed, Internet, TV) 5 Conclusions & Business Opportunities Brazilian IT & Telecom Market Overview - Futurecom 2009 2
  3. 3. What makes Brazil a good market? Economy (2008 facts): • Largest national economy in Latin America and the world's 9th largest economy, estimated at $1.8 trillion; • Economy is driven by the internal consumer spending (85% of GDP); • GPD growth in 2008: 5.1 %, 2009 (e): 0.8-1.9%, 2010 (e): 4.5-5.5%; • Brazil’s currency is up 29% against the US dollar this year; • Sept 22nd, Moody’s raised the investment rating one level to Baa3. Brazil interest rate 8.75%; • Brazil represents more than 80% of Mercosur's economy. Brazilian IT & Telecom Market Overview - Futurecom 2009 3
  4. 4. What makes Brazil a good market? Population (2009): • 191 million: 80% urban and 60% high and middle class. Commercial Infrastructure (2008) • 67.5 million Internet subscribers (35% penetration); • 158 million mobile subscribers (83% penetration) • 10 million Broadband Access subscribers (5% penetration) • 84 million PC’s in use (14% penetration) Investment: • Government’s Growth Acceleration Plan (PAC) to rise to 1.5% by 2010 from the current 0.5% of GDP; • 2014 World Cup and the 2016 Summer Olympics Games • Government objective to have 100% telephony coverage in rural areas by 2014 • Proposal to revive state-run Telebras to manage fiber optic network Brazilian IT & Telecom Market Overview - Futurecom 2009 4
  5. 5. Brazil vs. Canada GDP Growth Rate (%) Brazilian IT & Telecom Market Overview - Futurecom 2009 5 Source: IBGE (Instituto Brasileiro de Geografia e Estatística, 2009 Bank of Canada, July 2009
  6. 6. Brazil vs. Canada GDP Growth Rate (%) Brazilian IT & Telecom Market Overview - Futurecom 2009 6 Source: IBGE (Instituto Brasileiro de Geografia e Estatística, 2009 Bank of Canada, July 2009
  7. 7. Brazil vs. Canada Population (Millions of people) 58% 67% Brazil High / Middle Class Brazilian IT & Telecom Market Overview - Futurecom 2009 7 Source: IBGE (Instituto Brasileiro de Geografia e Estatística, 2009 Fundaçao Getulio Vargas, 2008 Stats Canada, July 2009
  8. 8. Brazil vs. Canada Population (Millions of people) Brazilian IT & Telecom Market Overview - Futurecom 2009 8 Source: IBGE (Instituto Brasileiro de Geografia e Estatística, 2009 Fundaçao Getulio Vargas, 2008 Stats Canada, July 2009
  9. 9. Brazil Exports & Imports Growth Rates (%) Brazilian IT & Telecom Market Overview - Futurecom 2009 9 Source: The World Trade Organization (2008)
  10. 10. Brazil Canada Trade (millions) Brazilian IT & Telecom Market Overview - Futurecom 2009 10 Source: Statistics Canada, 2008
  11. 11. Brazil ICT & Telecom Market Structure Merge /Acquisition Completed Merge /Acquisition Planned Brazilian IT & Telecom Market Overview - Futurecom 2009 11 Source: eXpancom, 2009
  12. 12. Brazil Mobile Telephony Market Share 2009 (%) Mobile VoiP Mobile TV Mobile Fixed Telephony Brazilian IT & Telecom Market Overview - Futurecom 2009 12 Source: eXpancom Latin America 2009
  13. 13. Brazil Mobile Number of subscribers (millions) Portability 5% 6% 9% 80% 80% 80% 80% 80% 80% 80% 79% 21% 20% 20% 20% 19% 19% 19% 19% Post-paid Brazilian IT & Telecom Market Overview - Futurecom 2009 13 Source: Pyramid Research (2008) eXpancom Latin America
  14. 14. Brazil Mobile Average Revenue per Subscription (USD$) Brazilian IT & Telecom Market Overview - Futurecom 2009 14 Source: Pyramid Research (2008) eXpancom Latin America
  15. 15. Brazil Broadband Market Share 2009 (%) Mobile Broadband Brazilian IT & Telecom Market Overview - Futurecom 2009 15 Source: eXpancom Latin America 2009
  16. 16. Brazil Internet Broadband Market (millions) 36% 25% 62% 24% 29% 19% 34% 19% Cable DSL Mobile Broadband Brazilian IT & Telecom Market Overview - Futurecom 2009 16 Source: Cisco Broadband Barometer, Oct 2009,
  17. 17. Brazil Fixed Telephony Market Share 2009 (%) Mobile Fixed Telephony Brazilian IT & Telecom Market Overview - Futurecom 2009 17 Source: eXpancom Latin America 2009
  18. 18. Brazil Fixed Telephony Lines in Service (millions) Portability Brazilian IT & Telecom Market Overview - Futurecom 2009 18 Source: ANATEL (2009) eXpancom Latin America
  19. 19. Brazil Public TV Market Share 2009 (%) Brazilian IT & Telecom Market Overview - Futurecom 2009 19 Source: eXpancom Latin America 2009
  20. 20. Brazil Paid TV Market Share 2009 (%) IPTV Brazilian IT & Telecom Market Overview - Futurecom 2009 20 Source: Meio e Menssagem – Anuário das mídias 2008
  21. 21. Brazil Paid TV Subscribers (millions) Digital TV (ISDB-T) 33% 60% DSL Cable Brazilian IT & Telecom Market Overview - Futurecom 2009 21 Source: ANATEL (2009) eXpancom Latin America
  22. 22. Brazil IT & Telecom Market Share Who will win the battle? Operators with the largest customer base IPTV Mobile VoiP Mobile Internet Mobile TV Mobile Fixed Telephony Source: eXpancom Latin America 2009 Brazilian IT & Telecom Market Overview - Futurecom 2009 22
  23. 23. Brazil IT & Telecom Trends Conclusions & Opportunities • Industry consolidation,merging and acquisitions; • Wireless convergence will shift the current market structure • Fixed operators will continue to loss traffic and revenue to mobile and VoIP operators • Wireless and Satellite networks upgrades and expansions to support new services and coverage: WiFi, Mobile TV, Internet, and rural telephony; • Demanded cost reduction and introduction of triple play packages and 3rd party VAS to ensure margins and retain customer base • Migration towards an IP secure network and applications (i.e. IPTV, VoIP) and services (E-Commerce, E-Banking, E-Gov) • Increase of broadband and laptop penetration (urban and rural areas) • Digital TV conversion completed by 2014 Brazilian IT & Telecom Market Overview - Futurecom 2009 23 23
  24. 24. Obrigado! Market Resear ch Busi ness Dev el op ment Tr ad e eXpancom (Canada) eXpancom (Brazil) 402 Notre Dame St, Suite 300 Rua Nasciemento Silva No.97-102 Montreal, Quebec Ipanema, Rio de Janeiro 1.888.421.2456 +55.8636.1153 info@expancom.com info@expancom.com Brazilian IT & Telecom Market Overview - Futurecom 2009 24

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