InfoCom says mobile and broadband main drivers of Brazilian telecom market until 2014.

Online, September 24, 2009 (Newswire.com) - Stuttgart, Germany - Telecom spending in Brazil amounted to €31.2bn in 2008, equivalent to about 3% of the country's GDP, and it is expected to rise to €35.6bn in 2014 at a CAAGR (compounded annual average growth rate) of 2.2%. Revenues from fixed telephony will continue to decrease despite fixed telephony carriers' efforts to attract customers by decreasing service pricing and increasing geographical coverage.

Mobile telephony will remain the main driver of the telecom sector. The growth in subscription will offset the decline in prices. Indeed, if ARPU (average revenue per user) is expected to decrease from currently €9.00 to €8.40 in 2014, the total subscriptions will increase to 185.9 millions by 2014, representing a penetration rate per inhabitant of nearly 90%. Growth opportunities will likely come from the prepaid market, particularly the low-income users and SME segment, and from Region I, where mobile penetration is still relatively low. Non-voice services should gain some momentum as soon as 3G based mobile broadband services become more geographically available. Furthermore, the launch of 4G (LTE) technologies in the first part of the next decade should further boost mobile broadband by allowing faster and enhanced mobile data services.

Brazilian telecom market trends reported by InfoCom also include:
-- Broadband penetration continues to increase as at end-2008, over 17% of all Brazilian households had broadband Internet access, up from about 10% in 2006. xDSL is the leading broadband technology while 2.5 million are cable modem subscribers: Embratel's subsidiary Net Serviços (formerly Globo Cabo) controlls more than 90% of the cable modem segment with 2.2 million subscriptions.
-- Brazil is one of the fast-developing economies in the world along with China, India and Russia. Coupled with its large population and ongoing industrialisation, Brazil is expected to become one of the leading countries in agriculture, manufacturing, mining, service and telecommunication sectors.

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