Broadband telephony is one of the main drivers helping the telecom services market in Brazil grow. That’s the conclusion reached by Frost & Sullivan (News - Alert) in a recent report, “Brazilian Total Telecommunications Service Market Driven by Broadband, VoIP and Mobile Telephony Services.”
As the title of the report suggests, broadband services, along with VoIP and mobile telephony, are having a positive effect on the telecom industry in Brazil. Further, Frost & Sullivan noted that the convergence of data, voice and video is creating even more opportunities for growth.
These new types of triple play
services are now starting to penetrate into the market for lower-end users, increasing the industry even more, the firm said. The penetration of broadband offerings into what Frost & Sullivan called “lower social classes” should be a winning strategy for operators, along with offering increasingly popular VoIP packages.
Looking even further into the future, Frost & Sullivan predicted that mobile telephony services will take over the telecom sector, displacing fixed-line services both in terms of traffic and revenue.
“Traditional telephony is declining due to fixed to mobile substitution, as well as the adoption of new technologies such VoIP, which produces considerable impact, mainly over the long distance market,” said Frost & Sullivan analyst Ignacio Perrone. “Nevertheless, local and long distance telephony still figure as the main telecommunications services, having generated 46.2 percent of the total revenues in the telecommunications sector during 2006.”
Triple play services—bundles of voice, video and data—are looking pretty attractive to operators, Frost & Sullivan said in its report. In fact, some operators are actively pursuing partnerships or acquisitions in order to start or boost their triple play offerings.
Low-end users and small businesses are another target for operators looking to expand their share of the market.
“Operators with high operational capabilities and synergy among their services markets are expected to take best advantage of market growth, being able to address the triple-play demand and provide customized services plans for the low-and high-end users,” Perrone concluded.
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Mae Kowalke is an associate editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Mae’s articles, please visit her columnist page. She also blogs for TMCnet here.