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LATAM and Brazil market insights

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02 Dec 2024

Voice and SMS in Brazil

Maeve Debordons
Voice and SMS in Brazil
Brazil’s voice and messaging industry has experienced significant growth in recent years, with the expansion of internet access and the increasing penetration of smartphones, Brazil is experiencing a shift towards digital communication channels, with an emphasis on voice and messaging services. Businesses are increasingly adopting omnichannel strategies to engage customers through multiple platforms.  

On the regulatory side, the Brazilian government has been working on improving telecommunications regulations to impact service delivery and competition, aiming to enhance consumer protection and promote fair competition amongst service providers.  

The main companies dominating the market are the major telecommunication companies such as Telefonica Brasil, Claro, Oi and TIM, and apart from providing traditional voice services they are expanding into data services, essential for messaging applications like WhatsApp, which has become the dominant platform for communication with over 100 million users. Additionally, emerging players like Telegram and Signal are gaining traction, especially amongst privacy-conscious users. These platforms are also leveraging enhanced security features to incorporate monetisation strategies, such as premium subscriptions. It’s important to also mention VoIP Servies like Skype, or local alternatives like Meu Numero, which are platforms catering to both individual users and businesses, providing cost-effective solutions for long-distance calls.  

The rise of e-commerce and remote work post pandemic has accelerated the demand for reliable voice and messaging solutions, and there has been a rise in investment in start-ups focused on innovative communication technologies. There are still challenges like intense competition, regulatory hurdles, as well as Brazil’s regional disparities in regards to internet access, which can affect market penetration strategies.  

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