Telecommunications investment in Brazil to exceed US$4 billion by 2030

RIO DE JANEIRO, BRAZIL – A recent study by SmC+ Digital Public Affairs, at the request of American Tower, points out that investment in telecommunications infrastructure may reach US$4.5 billion by 2030 in Brazil. According to the report “New Dynamics of Telecommunications Infrastructure Management in Latin America”, investments in Latin America should reach US$17 billion.

After Brazil comes Mexico (US$3.4 billion), Peru (US$2.2 billion), and Colombia (US$870 million), it is these investments that will guarantee massive access to the new technologies to amplify their economic impact. If operators allocate the equivalent of 3% of their annual income to more efficient infrastructure models, they can meet the demand by 2030.

The research also points out that it will be necessary to implement more than 240,000 new telecommunications sites in Brazil by 2030. When Latin America as a whole is considered, there will be 550,000 new sites (four times more than there are today). The main drivers are the demand for new internet services, the need to close the digital divide, and the arrival of 5G technology.

The growing demand for connectivity and the need for operators to expand their coverage and reduce deployment costs make independent infrastructure companies gain space. They already have 57% of the sites, thanks to more efficient and sustainable models that allow different operators to deploy assets in the same facilities.

Infrastructure sharing

It also guarantees urban and environmental benefits. According to Sebastián Cabello, CEO of SmC+ Digital Public Affairs, if the market share of independent infrastructure companies grows by ten percentage points (from 57% to 67%) by 2030, the increase in site sharing should be greater. “On the order of 16 percentage points [from 34% to 50%] over the period.”

Despite this, one must consider the barriers that limit the deployment of this type of infrastructure in the region. “The federal government has the autonomy to legislate on telecommunications,” explains Emerson Hugues, general director of American Tower do Brasil.

However, it is the municipalities that define the use and occupation of land. “And, in most of them, the installation of infrastructure for telecommunications,” he highlights. “This should become more critical with the advance of 5G and the need to install antennas in the coming years since greater coordination and more agile processes will be required,” he adds.

The paper recommends that authorities collaborate and coordinate to ensure predictability in approval processes for the installation of sites and towers. The empowerment of regulatory bodies and the alignment of local governments will be fundamental for the deployment of telecommunications infrastructure and the region’s digital transformation.

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