WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 63 / 356
operators. Today they have about 3.9 million subscribers, which mean that they obtain a
level of 9.6% of penetration on the total domiciles covered by its networks, or 32% of
penetration if considered only the domiciles with classes A or B. The Cable Modem
operators, with near 1.1 million subscribers of the of internet access services, have a
penetration of 5.7% of the domiciles covered by its networks where there is offering the
services; however, the growth was bigger for Cable Modem operators in the year of 2006,
which shows that they are more aggressive.
The following chart illustrates the total of broadband connections in Brazil.
thousand 1T05* 2T05* 3T05* 4T05* 1T06* 2T06* 3T06*
ADSL 2,088 2,406 2,762 3,092 3,359 3,594 3,880
Paid TV 393 4523 528 629 789 914 1,036
Others (Radio) 30 44 60 75 80 92 105
Brazil total 2,510 2,902 3,350 3,796 4,228 4,600 5,050
Table 5-1 Total of broadband connections in Brazil
Source: Operators, ABTA and Teleco, does not include satellite and dedicated IP.
* T05 – Trimester 2005; T06 Trimester 2006
Brazil finished Jun/06 with 4,743 thousand connections of broadband, being 78.7% DSL,
17.0% Cable, 3.8% Wireless and 0.5% Satellite.
Between the most important broadband operators, the great prominence of covering is Brazil
Telecom (BrTurbo) that expanded even more its ADSL network in comparison to 2005 and
today reaches a total of 1274 cities. The Telefônica (Speedy) also expanded the network in
2006, reaching 346 cities, as well as Telemar (Velox), that now reaches 221 places. With
exception of Vivax, that expanded its services of broadband to 33 places, the Cable Modem
operators did not expand their networks in year 2006.
The services of broadband with the greatest potential are the ones from Telemar, Telefônica
and the Vírtua, from the Net Serviços. The Velox, of Telemar is in a few cities in comparison
with the covering of the network, but are well representative in the economic point of view,
and reach 31.2% of the consumption potential index (IPC) of Brazil. The Speedy is available
in markets that represent 29% of the Brazilian consumption potential. The Vírtua, with much