Telecommunications in Brazil: Telefónica, América Móvil and Telecom Italia

Today, Brazil‘s telecommunications sector is fully open to competition and presents a different market dynamic, according to the Brazilian government.

While the mobile market is concentrated and has a handful of large foreign operators, such as Telefónica (Spain), Telecom Italia (Italy) and Teléfonos de México (Telmex)/América Móvil (Mexico), almost half of the fixed market is controlled by thousands of regional providers.

A recent change was the sale of Oi’s mobile operation to Claro, Vivo and TIM, three major players in this market.

The operation was conditioned, in 2021, by the Administrative Council of Economic Defense (CADE), to a merger control agreement.

Oi filed for bankruptcy protection in 2016 and had been absorbed by Telefônica, TIM Brasil and Telmex/América Móvil, an operation that was approved by CADE at the end of 2021.

Oi will keep its fiber network assets and focus on the fiber optic business.

In the retail broadband market, small and regional operators account for almost half of the connections nationwide, dominating the market in several municipalities.

Telecommunications

Brazil’s National Telecommunications Agency (ANATEL) periodically monitors the implementation and management of the national number portability program and its overall assessment is that it has had a positive impact in recent years in terms of promoting competition and improving the overall quality of service in the sector.

Since 2007, number portability has been mandatory. A private association, contracted through public bidding, continues to manage the central reference database for number portability.

As a result of the bidding process, the management of portability operations was delegated by ANATEL to the Brazilian Association of Telecommunications Resources (ABR Telecom).

ANATEL also oversees the wholesale infrastructure in the country and has on its board representatives of the largest telephone operators, as well as representatives of small and regional operators.

Number migration is subject to conditions set by ANATEL and ABR Telecom, including a fee of BRL 4,304.

In 2022, around 700,000 fixed and mobile telephone subscribers in Brazil move their number to a new operator each month.

Between 2008 and January 2021, 8 million 382,861 lines, including 1 million 243,657 fixed lines and 7 million 139,204 cell phones, were transferred to a different operator.