A guide to business culture in Brazil

In 2023, Brazil allocated over 2.25 billion reais (US$460 million) from the Fust telecoms fund for connectivity projects, boasting a large mobile market with widespread smartphone and mobile data service adoption. While 4G LTE networks are well-established, 5G networks are gradually being rolled out in select cities. Government initiatives like the National Broadband Plan and fibre rollouts aim to improve connectivity, though regional disparities persist, with urban areas having better infrastructure than rural regions. 

Brazilian telecom companies are undergoing digital transformations to enhance customer experience and introduce new digital services. Investments in cloud computing, data analytics, cybersecurity, and the Internet of Things are key to staying competitive. Despite the challenging business environment in LATAM and Brazil, industry gatherings and events are valuable for connecting with potential customers and regional partners. 

The Brazilian telecom industry is evolving rapidly, driven by technological innovation, expanding digital infrastructure, and rising consumer demand for connectivity and digital services. The rollout of 5G, increased mobile penetration, and investments from global telecom players highlight the market’s potential for future growth. 

Under current regulations, five companies—Telefonica Brasil, Oi, Algar Telecom SA, Sercomtel SA, and the local unit of Mexico’s America Movil SAB de CV—are required to provide unprofitable fixed-line services in certain areas. Historically, the 1960s saw chaos in the telecom sector, leading to the nationalization of small private companies in the 1970s to form the Telebrás System, which included a holding company, Embratel (a long-distance and international operator), and 27 state operating companies. Today, Embratel is owned by America Movil. 

In late 2022, Embratel and Claro launched a programme to train developers among their employees, focusing on behavioral skills and innovation rather than technical knowledge. Financial companies in Brazil face significant fraud issues, exacerbated by increased digital transactions. Telefonica Vivo Brazil combats this with network APIs for personalized anti-fraud solutions, including the Number Verification API, which streamlines customer onboarding and reduces scam opportunities. 

Telco operators face challenges in cybersecurity, needing to protect both their operations and customers. ANATEL has introduced its own cybersecurity regulations to address these concerns. 

While navigating Brazil’s connectivity market can be complex, with big challenges like regulatory complexity, market competition and infrastructure disparities, the best practices for success would be as follows:  

• Embracing local partnerships with local companies, providing valuable insights and enhance distribution channels as well as customer reach  

• Understanding local needs: tailoring products and services to meet the specific needs of Brazilian consumers, including flexible pricing models and customer support in Portuguese 

• Investing in innovation: keeping up to date with technological advancements, investing in R&D and developing innovative solutions that address emerging connectivity challenges