Overview and evolution of telecommunications in Brazil

Transcription

1 Overview and evolution of telecommunications in Brazil Industry report partial free sample Sao Paulo, March 2018 Copyright Falke Information

2 The number of landline connections grew rapidly in the 1990s, stagnated and was quickly surpassed by the volume of mobile phones in use Evolution of the fixed and mobile telephony markets in Brazil [in millions] Number of landline connections Number of mobile phones Copyright Falke Information 2

3 According to data from Teleco, revenues from landline connections are essentially formed by 3 of the largest telecom players in Brazil Revenue evolution and breakdown in fixed telephony in Brazil [R$ billions] Comments The Switched Fixed Telephony Service (STFC) for local and long distance calls in Brazil is provided by the following categories of companies: Concessionaires, companies from the Telebrás system privatized in 1998 like Algar and Sercomtel. This category has more obligations; Authorized or so-called mirror companies that received authorization in 1999, and other related companies with authorization from the STFC, including concessionaires outside their concession area Claro Oi Fixo Vivo Fixo Claro, Vivo Fixo and Oi Fixo are the main concessionaires composing the revenues from the STFC. Copyright Falke Information 3

4 The segment was dominated by 3 operators but has been diluted among other competitors, with 64% of connections in the Southeast region Market share in fixed telephony by operator and region (in landline connections) Market share by operator Market share by region (2017) Others 30% 28% 27% 27% 26% 24% 23% 22% 22% 23% 23% Southeast South Northeast Centre-West North Copyright Falke Information 4

5 In the mobile segment, the four leading operators concentrate over 99% of turnover, specially when it comes to Vivo and TIM in recente years Revenue evolution and breakdown in mobile telephony in Brazil [R$ billions] Comments There are eight mobile operators that are authorised to function within the telecommunications sector in Brazil. However, the 4 largest groups in the segment which also operate in the fixed telephony segment reach concentrations of up to 98% to 99.6% of the segment s revenues Vivo TIM Claro Oi Vivo has been the leader for a few years now. The group is the only operator that has CDMA as its main technology. The others opted for GSM. In 2006, Vivo implemented a GSM network that was ready for commercial operations in Dec/06. Copyright Falke Information 5

6 The market share of mobile operators has changed very little over the last few years and Southeast is less expressive than in fixed telephony Market share in mobile telephony, by operator and region (in mobile phones) Market share by operator Market share by region (2017) & others 31% 30% 30% 30% 30% 29% 28% 28% 28% 30% 31% Southeast South Northeast Centre-West North Copyright Falke Information 6

7 EBITDA margin seems to vary less among the top telecom groups in the world but appears to rise the smaller the player in terms of sales Top telecommunications groups in the world in turnover in 2016 [US$ billions] Turnover EBITDA AT&T Source: Statista, annual reports, FALKE Information analysis Copyright Falke Information 7

8 DISCLAIMER The analysis and recommendations of Falke Information are supported by assumptions considered right and consistent based on the available information. Therefore, Falke Information will not be held responsible for the correctness of the resulting recommendations and analysis in this document. NOTE: Copying and handling over of this document is not allowed without prior written permission by Falke Information Copyright Falke Information 8