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25 years of telecommunications privatization in Brazil: investments reach over US$200 billion

The Brazilian telecommunications sector, privatized 25 years ago, has seen a total investment of R$ 1 trillion (about US$210 billion), according to data from Conexis Brasil Digital.

Since privatization in 1998, when Telebras was the sole provider of fixed lines, cable TV, and mobile telephony, the country has experienced significant growth in communication accessibility.

From an initial 28 million connections, this figure has risen to 336 million in 2023, of which 251 million are mobile connections.

The sector has witnessed a staggering 3309% increase in mobile telephony in these 25 years, from 7.4 million to 251 million users.

However, the growth in fixed-line telephony was more modest, at 33%, due to the popularity of mobile telephony.

Photo Internet reproduction.
Photo Internet reproduction.

Despite the growth, Brazil’s coverage lags slightly behind the global average of 95%.

The country offers connectivity to 91% of its population, with the remaining populace hindered by new technologies.

For instance, even one year after 5G was introduced, over half the population (53.9%) still lacks access to it.

As per Teleco’s research, the primary players in the Brazilian mobile services market are Vivo (Telefónica), with a 39% market share; Claro, with 33.1%; and Tim, at 24.4%.

All of these companies also offer fixed internet and cable TV services.

Furthermore, in 2022, these three companies acquired the mobile services of Oi, which still provides internet, TV, and fixed-line services, despite its financial struggles.

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