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LATAM and Brazil market insights

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16 Sep 2024

Brazilian telecoms and connectivity: 7 hot topics for 2025

Maeve Debordons
Brazilian telecoms and connectivity: 7 hot topics for 2025
As part of the planning process for Capacity Latam 2025, the leading connectivity and telecoms event for Brazil and Latin America, we noticed several themes being raised again and again as top priorities for the sector. Here is a summary of them:

Data centres​

Data centres have become increasingly important in Brazil as the country has experienced rapid growth and digital transformation. With the rise of cloud computing, e-commerce, and data-driven industries, the demand for reliable and scalable data centre infrastructure has surged. They help companies deal with the country's strict data privacy and localisation laws, improve content delivery speeds and reduce latency for users. They also play a crucial role in disaster recovery and business continuity, ensuring that critical data services remain available even during natural disasters or power outages.

 

Subsea​

Subsea cables are a crucial component of Brazil's digital infrastructure tanks to Brazil’s extensive coastline and island territories, linking it to the global digital economy. They provide high-capacity, low-latency data transmission between Brazil and the world. Within Brazil, Fortaleza is a hub for subsea cables.

 

ISPs​

Brazil has a dynamic ISP market, characterised by consolidation and fragmentation. The largest national ISPs like Vivo, Claro and Oi have built extensive fiber-optic and mobile broadband networks, providing high-speed internet access to major urban centres. Regional ISPs have emerged, catering to the unique needs of local communities and businesses, especially in remote and underserved areas. The market has seen improved internet penetration and bandwidth across the country. Recent years have seen the development of FTTH, as well as bundle deals gaining popularity. ​

Satellite and rural connectivity

Satellites play a crucial role in Brazil's telecoms and data infrastructure, specifically providing connectivity to remote and hard to reach areas of the country. The government-owned company Visiona Tecnologia Espacial oversees the country's satellite programme. Starlink has also gained popularity amongst the agricultural rural community in recent years. Brazil has participated in international satellite initiatives such as Iridium NEXT and OneWeb to provide access in the most remote areas.

 

5G ​

Brazil has one of the largest fixed line broadband markets in Latin America, and 5G rollout has been a major priority for the government and telco industry. Initially focusing on urban centres, Brazil plans to roll out and expand coverage in more rural areas. To support the transition the government has also implemented policies to encourage investment in network infrastructure, in an aim to position itself as a leader in the next gen of mobile connectivity. ​

Investment and public funding​

In recent years Brazil has experienced a significant surge in investment in its Telecommunications and Connectivity sector, highlighting the importance of growth in the digital infrastructure sector for the country's economic and social growth. In 2023 Brazil approved over USD $460M in resources from the Fust Telecoms Fund for Connectivity Project, to name one example. ​

 

Active and passive mobile infrastructure​

​Towercos in Brazil play a crucial role in supporting the country's telecommunications infrastructure. From rapid growth of mobile connectivity including mobile penetration and 5G deployment. The country's diverse landscape means there are geographical challenges to tower deployment. ​​

There has been some conflict between towercos and MNOs over lease rates and building parallel infrastructure, this has been settled but relationships have been damaged. Almost all towers in Brazil are owned by towercos so they are here to stay, essential to charting a new course together. New model for sharing infrastructure, private network deployment, 5G and other new tower tenants are all core topics for the market. ​

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