Study shows that fixed telephony still resists, that internet revenues and connections will grow 9% and 7%, respectively, until the end of 2023, and that the adoption of 5G enabling use cases for various verticals should accelerate even more in 2024
The total revenue of the Brazilian telecommunications market, which encompasses fixed and mobile data and voice services, in addition to pay TV, was US$ 36.8 billion in 2022. The result is 2.4% higher than the previous year and one of the main highlights was the contracting of internet accesses by the B2C and B2B segments, which grew by around 10%. For 2023, the expectation is that the telecom services sector, as a whole, will earn even more, growing 3.5% compared to 2022. The data are part of the study “IDC Telecom Service Database Tracker”, from IDC Brasil, leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries.
“Especially in the corporate market, we have identified a migration movement from MPLS accesses and legacy networks to dedicated internet accesses. Between 2022 and 2027, we estimate a compound growth in internet revenue of around 5%, considering B2B and B2C”, highlights Anderson Shintani, Senior Telecommunications Research and Consulting Analyst at IDC Brasil.
With regard to mobile data, in 2022, the increase was around 7% compared to 2021, a result mainly driven by the business sector, which grew slightly more than 9%. Another highlight, the adoption of M2M (Machine to Machine) in business solutions, recorded an increase of around 12%. “We see many cases of IoT using 4G/LTE and that meet the need for connectivity. However, we believe that 5G should replace this technology through implementations of new use cases and, on a larger scale, in the coming years, especially in manufacturing, utilities, resources and agri”, evaluates Shintani.
Regarding fixed telephony revenues, which had been falling sharply in recent years, IDC observes a slowdown in the fall. “Many companies still need to maintain traditional communication channels with the public and customers. We have seen the adoption and migration of traditional telephony to virtual or cloud PBX models, as well as integration with unified communications solutions”, reveals the analyst.
Projections for 2023
For this year, IDC foresees a total growth of the telecom services market in Brazil of 3.5%. The result will be driven by increased adoption of 5G in use cases across manufacturing verticals, utilities, resources and agro – which should accelerate even more in mid-2024 –, as well as the increase in revenues and connections referring exclusively to the internet, which should reach 9% and 7%, respectively, by the end of 2023.
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