Research and Markets: Latin America Telecom Insider / Vol. 1, No 6, Edition 7 - Brazil's Brave New Mobile Broadband World: The Rise of Data Cards

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/f3f109/latin_america_tele) has
announced the addition of the "Latin America Telecom Insider / Vol. 1, No 6,
Edition 7 - Brazil's Brave New Mobile Broadband World: The Rise of Data Cards"
report to their offering.

Mobile broadband will surpass fixed broadband in Brazil by 2011, reaching nearly
27 million data card users in 2014 from 1.5 million in 2008, according to this
latest report.

Brazil's Brave New Mobile Broadband World: The Rise of Data Cards examines the
potential of mobile broadband computing devices to reach significant adoption
levels in Brazil and mobile broadband's prospect of surpassing fixed broadband
in the near future. The 12-page report provides the author's five-year forecast
on data cards adoption in Brazil and discusses the strategies of the main mobile
players, including two case studies: Claro and Oi. The report discusses the
latent demand for broadband in Brazil and points to it as one of the key drivers
for our positive mobile broadband estimates. Data cards are set to become an
important driver of broadband adoption in Brazil. Operators should be prepared
for strong, sustained growth going forward as mobile broadband becomes a true
alternative to fixed broadband in Brazil, notes Fernando Faria, analyst at
Pyramid Research and author of the report. "According to Anatel, the number of
mobile data devices in May 2009 was nearly 4.3 million, which represents roughly
30 percent of the total broadband market, already a clear indicator that there
is significant pent-up demand still in the marketplace," he says. "Pyramid
expects mobile broadband to surpass fixed broadband in Brazil by 2011 and to
reach nearly 27 million data card users in 2014, from 1.5 million in 2008, a 62
percent CAGR," he adds.

The value proposition for mobile broadband is unquestionable: Data cards offer
an easy way to connect in a variety of locations with competitive speeds.
"Besides this, there are a few other aspects people are starting to pay
attention to in Brazil, such as shorter installation time fewer hurdles with LAN
compatibility and absence of wires and cabling, to name a few," says Faria.
Although mobile broadband is considered to be more expensive than fixed
broadband, as data cards reach significantly higher adoption levels, it becomes
financially viable for mobile operators to drop prices. "Despite this immense
potential, the author is observing an early issue with an unexpectedly high
churn rate in mobile broadband service, which we credit to the 'frustration
effect,'" explains Faria. "Provided operators keep improving network quality to
address a few early coverage issues, data cards could become the dominant
broadband access device in Brazil," he says.

Key findings

* Brazil's fixed broadband footprint has not met the market's need for
connectivity, and we expect that the full-scale launch of mobile broadband
services in 2009 will rapidly change the competitive scenario. Pyramid Research
expects that the mobile data cards market will exceed fixed broadband accounts
by year-end 2011, reaching nearly 27m users by 2014.
* Early adoption figures suggest that the market is picking up and that the
simplicity associated with a mobile data device has strong appeal. By May 2009,
Brazil had 4.3m active data devices users, growing from less than 700,000 in May
2008. These 4.3m users correspond to nearly 30% of the total broadband market.
* The deployment of prepaid mobile broadband offerings will be a key growth
driver, offering an inexpensive connectivity alternative that fixed operators
cannot offer. The flexibility this modality allows, along with continued subsidy
strategies, will continue to give mobile operators a strong edge over fixed
operators.
* The flip side of this success story is the fact that mobile operators are
still struggling with coverage issues, most likely caused by the unanticipated
demand for bandwidth. We understand that a continued effort to roll out their
UMTS/HSPA networks is necessary, not only to comply with Anatel's targets but
also to feed the need for broadband services that Brazilian users have been
displaying over the past few months.
* As discussed in the case studies of Claro and Oi, each operator will have
their own particular set of challenges over the next few months while dealing
with this impressive demand. The two other major players - Vivo and TIM Brasil -
are also moving fast to position themselves on the forefront of this market. In
the end, we believe the biggest winner will be the customers, who will have more
options to choose from.

Key Topics Covered:

* Introduction
* Brazil's brave new mobile broadband world
* A. There is latent demand - Fixed broadband penetration is still very low in
Brazil
* B. The value proposition is unquestionable - Simplicity everywhere
* C. Mobile operators have the edge on pricing flexibility
* D. The flip side: Beware of the "frustration effect" and its potential damage
* Market detail
* Case study: Claro
* Case study: Oi in São Paulo
* Conclusions
* Key findings
* Recommendations
* Related resources
* Table of exhibits

Companies Mentioned:

* Brasil Telecom
* Claro
* GVT
* NET Serviços
* Oi
* Telefónica
* TIM Brasil
* Vivo

For more information visit
http://www.researchandmarkets.com/research/f3f109/latin_america_tele.

Source: Pyramid Research, Inc.

Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

Copyright Business Wire 2009