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Brazilian operators reap benefits from network sharing agreements to cover expansive market with fibre broadband

Strategic Highlights
Published: 2020-03-20

The total fixed broadband subscriptions in Brazil continued to grow by 6% YoY – exhibiting one of the fastest developments as per InfoCom's Quarterly Fixed Broadband monitoring in the Rest of World* region. Coming next to China in terms of subscription growth, Brazil's fixed broadband development was mainly driven by the substantial growth in its fibre to the premises (FTTP) segment, stemming mainly from the heightened broadband network outlays which resulted in wider coverage. During the period, Vivo Brasil launched its fibre to the home (FTTH) services to 43 new cities, reaching a total 164 cities covered with its FTTH networks. Meanwhile Oi has already laid more than 360 000km of fibre lines nationwide, and is planning to extend this further once its pending sale of its mobile operations materialises (note: the company announced that proceeds of the transaction will be used to finance its FTTH network investments). Aside from own network expansion initiatives, the said players further benefit from network access agreements with regional providers. For instance, Vivo Brasil, even if it just recently launched the said scheme, already saw 9% QoQ increase in its fibre user base. InfoCom noted that during November 2019, Vivo Brasil launched 'Terra, conectado por Vivo Fibra' franchising scheme (Terra, connected by Vivo) which allows regional operators to access its nationwide 115 000km fibre network and offer FTTH services to cities with 20 000 to 50 000 inhabitants. Vivo claimed that the said scheme could contribute around 1m households to its existing FTTH user base by end-2021.

As per InfoCom's monitoring, there were more than 29m fixed broadband subscriptions in Brazil, with FTTP subscriptions exhibiting the most significant increase in share among the fixed broadband technologies (FTTP growth at +13p.p. YoY to 33% of total country connections).

*Rest of World region includes China, the USA, Japan, Brazil, South Korea, India, Canada, and Taiwan - Click here to find out more information about this report.


Published: 2020-03-20

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