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Telecommunications Report Brazil 1st Quarter

  • ID: 4495146
  • Report
  • March 2020
  • Region: Brazil
  • 11 Pages
  • The Economist Intelligence Unit
The outbreak of the coronavirus (Covid-19) will hit Brazil's short-term economic outlook and affect the telecoms sector, starting with interruption in imported inputs from China for information and communications technology (ICT) manufactures made in Brazil. However, The Economist Intelligence Unit expects a recovery from 2021. The administration, led by Jair Bolsonaro, espouses free-market policies that bode well for the telecommunications market. Fiscal pressures will curb the availability of tax incentives for the telecoms industry. Following the passage of a telecoms law (which was a priority for the Bolsonaro government), the administration will focus on developing fifth-generation (5G) cellular network technology and the Internet of Things (IoT), and building telecoms infrastructure.

Brazil is part of a group of countries working to set up global 5G architecture. The Agência Nacional de Telecomunicações (Anatel, the national telecoms regulator) has put its proposals for the auction of 5G frequencies to a public consultation, which will end in early April. The auction will be in late 2020 (or early 2021, if the coronavirus causes further delays).

The telecoms market will also be shaped by a reform to Brazil's antiquated General Telecoms Law that was approved in late 2019. The law (known as PLC 79) authorises the migration of fixed telephony concessions for authorisations assigned by Anatel. It also aims to reduce the burden on fixed-line operators to provide universal fixed-line services and other outdated services such as free public call boxes and landlines. This will boost profit-ability and open up investments of about US$10bn, according to government estimates. The passage of the bill mitigates uncertainty regarding concessions, which will speed up investments. We expect Anatel to implement the law over the next 12-18 months, with the sale of assets beginning in 2020.

Industry List: Connected devices, Telecommunications, Fixed, Telecommunications, Internet, Telecommunications, Mobile, Telecommunications, Telecommunications
Industry Codes (NAIC): 517
Industry Codes (SIC): 48
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Telecommunications Report Brazil 1st Quarter

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Telecommunications report: Connected devices
Note: Product cover images may vary from those shown
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