Despite pandemic impact, telecom operators invested US$6 billion in Brazil in 2020

RIO DE JANEIRO, BRAZIL – Conexis Brasil Digital on Tuesday, May 11, released a balance showing that the operators’ investments totaled R$31.1 (US$6) billion in 2020. The organization says that despite the negative impact of the Covid-19 pandemic on the economy, the sector maintained investments above R$30 billion.

However, the amount still resulted in a 5.76% drop compared to 2019, when the industry recorded investments of R$33 (US$6.3) billion.

Nevertheless, Conexis states that, considering the average investment of the past five years in nominal data (R$30.5 billion), the amount invested in 2020 would post growth of over 2%. In inflation-adjusted values, investment in 2020 would reach R$32 billion, slightly below the average of 2015 to 2019, which was R$35 billion.

The organization, which represents Brazil’s major telecom operators, also points out that there was growth when compared to the immediately preceding quarter. In the last three months of 2020 the sector’s investment grew 38.2% compared to the third quarter, this time in nominal values, and 1.7% compared to the fourth quarter 2019.

Investment and revenue

Since privatization, the sector has invested over R$1 trillion in updated values and including the payment of grants. In investments alone, the amount is now close to R$900 billion.

“We are maintaining investments despite a scenario of a drop in the sector’s revenue. Gross telecom revenue stood at R$249 billion in 2020, a 2% reduction from last year,” said Conexis Brasil Digital’s CEO Marcos Ferrari. “We must inevitably pass a tax reform that improves this relationship and increases the benefit to the consumer,” he added.

Ferrari also pointed out that a large part of the investment is being used in the installation of fiber optics. “We are at the top of the 4G adoption curve, the investment is in network expansion, fiber optics. In the fiber that reaches the citizen’s home. Most of the investments are in this direction,” explained Ferrari.

In the balance, Conexis says that in 2020 the sector’s workforce increased by 4.4%. As a result, the number of direct jobs in the sector increased from 483,000 to 504,000.

Market

The number of telecommunications service accesses increased from 308.8 million to 315.7 million. Fixed broadband grew 10% with the connection of 3.4 million new accesses while mobile internet grew 5.3% with the activation of 10.5 million new accesses. Mobile telephony also increased last year, with 7.4 million new accesses, reaching 234.1 million cell phones across the country – more than one phone for each inhabitant.

Conexis advocates an agenda for this year that prioritizes the country’s digitalization, with public policies that encourage investments and a tax reform that relieves the burden on Brazilians.

Source: Teletime