Value Chain Report on the Telecom Industry in Brazil.

Abstract

This report provides a comprehensive analysis of the telecommunications industry in Brazil, detailing its intricate value chain from equipment manufacturing to end-user consumption. It examines the key segments and activities within each layer of the value chain, including Equipment & Software, Network, Connectivity, Navigation & Middleware, Application, and Customers. The analysis profiles major industry players such as Vivo, Claro, TIM, Oi, and V.tal, along with their market shares, operational volumes, and strategic positioning. The report further investigates the complex commercial relationships, diverse business models, and the specific products and services exchanged between stakeholders. A significant portion is dedicated to identifying and analyzing the primary bottlenecks and challenges confronting the sector, such as regulatory hurdles, infrastructure deployment difficulties in a vast territory, the evolving dynamics with Over-The-Top (OTT) service providers, intense market competition, and the need for cybersecurity and skilled talent. The study culminates in a summary of findings, highlighting the sector's dynamism, driven by investments in 5G and fiber optics, alongside persistent structural and competitive challenges. This report aims to serve as a detailed resource for understanding the operational and strategic landscape of the Brazilian telecom industry.

Introduction

The telecommunications industry is a cornerstone of modern economies, facilitating communication, commerce, and access to information. In Brazil, the telecom sector has undergone significant transformations, marked by privatization, technological advancements—most notably the ongoing deployment of 5G and the rapid expansion of fiber optic networks—and evolving regulatory frameworks. It represents a substantial portion of the national economy, with significant annual revenues and investments, playing a critical role in the country's digital transformation and socio-economic development. The industry encompasses a wide array of services, including mobile and fixed telephony, broadband internet access, pay television, and increasingly, a platform for a myriad of digital services and applications.

The purpose of this report is to provide a detailed and comprehensive analysis of the value chain of the telecommunications industry in Brazil. The scope includes an in-depth examination of each constituent layer of the value chain, from the initial design and manufacturing of equipment and software to the delivery of services and content to final consumers. This involves identifying key players, their roles and market significance, the commercial relationships and business models that govern their interactions, and the critical products and services exchanged. Furthermore, the report aims to identify and analyze the principal bottlenecks and challenges that impact the efficiency, growth, and evolution of this value chain. By presenting a structured and granular view, this document seeks to offer valuable insights for industry stakeholders, policymakers, investors, and academic researchers interested in the Brazilian telecommunications landscape.

Value Chain Definition

The telecommunications industry in Brazil is characterized by a dynamic and evolving value chain, reflecting the convergence of telecommunications, Information Technology (IT), and media sectors. This chain encompasses all activities required to design, produce, deliver, and support telecommunications services, from the creation of foundational hardware and software to the ultimate consumption of diverse applications and content by end-users. The structure of this value chain has been significantly influenced by historical privatization efforts, continuous technological innovation (e.g., fiber optics, 5G), and the evolving national regulatory framework overseen by Anatel (Agência Nacional de Telecomunicações). This has cultivated a complex ecosystem with a multitude of interacting players.

The value chain can be conceptually segmented into several interconnected layers, each representing a distinct stage in the process of delivering telecommunications services:

• Equipment & Software Layer: This foundational layer encompasses companies responsible for the design, manufacture, and supply of all physical hardware and software components that underpin the entire network infrastructure and enable end-user device functionality.

  • Identification and description of segments for each step of the value chain.
    • Network Equipment Manufacturing: This segment is dedicated to producing the core hardware that forms the backbone and access portions of telecommunications networks. This includes a vast array of products such as sophisticated switches and routers for data traffic management, base stations (e.g., ERBs, eNodeBs for 4G, gNodeBs for 5G), various types of antennas, optical transmission systems (including fiber optic cables, transponders, and optical line terminals - OLTs), and critical core network infrastructure components. A key focus is the development and production of equipment supporting new technologies like 5G and the extensive build-out of fiber optic networks.
    • Component Manufacturing: This segment focuses on the production of essential electronic components that are integral to both network equipment and consumer devices. This includes semiconductor chips (processors, memory), specialized integrated circuits (ICs), optical components, and other critical parts that are assembled into larger systems like smartphones, modems, and network appliances.
    • Software Development: This segment involves the creation, maintenance, and evolution of a wide range of software platforms and applications. These are crucial for managing network operations, enabling efficient service delivery, handling complex billing and customer relationship management (CRM) processes, and providing value-added features. This spectrum includes low-level network operating systems (NOS), firmware for hardware devices, comprehensive Business Support Systems (BSS) and Operations Support Systems (OSS), and diverse applications for end-users.
  • List of types of players in each segment
    • Global multinational telecommunications equipment manufacturers.
    • Semiconductor designers and manufacturers, and electronic component suppliers.
    • Specialized software development companies focusing on telecom-specific solutions.
    • Manufacturers of Customer Premises Equipment (CPE) such as modems, routers, and set-top boxes.
  • Detailed description of the main activities within each segment.
    • Extensive research and development (R&D) into new telecommunications technologies, protocols, and equipment designs.
    • Sophisticated manufacturing processes, including component fabrication, assembly of complex hardware, and rigorous quality assurance testing of finished equipment.
    • Development, coding, debugging, and testing of complex software systems vital for network operation, service orchestration, and customer management.
    • Global supply chain management and intricate logistics to ensure timely delivery of equipment and software to telecom operators and other service providers.
    • Provision of installation services, system integration support, ongoing maintenance, and technical assistance for deployed equipment and software solutions.

• Network Layer: This layer is directly responsible for the physical transmission of data, voice, and video signals across diverse network infrastructures. It encompasses the "pipes" through which information flows.

  • Identification and description of segments for each step of the value chain.
    • Fixed Network Infrastructure: This segment involves the deployment, operation, and continuous maintenance of physical network assets providing connectivity to stationary locations (homes and businesses). Key components include extensive fiber optic networks (FTTH - Fiber to the Home, FTTB - Fiber to the Building), legacy copper lines (supporting DSL, though this is declining in favor of fiber), and hybrid fiber-coaxial (HFC) cable networks (historically used for cable internet and TV). The aggressive expansion of fiber optics nationwide is a dominant activity.
    • Mobile Network Infrastructure: This segment focuses on the infrastructure enabling wireless communication services. It includes cellular towers, base transceiver stations (BTS for 2G/3G), NodeBs (3G), eNodeBs (4G), and gNBs (5G), which collectively form the Radio Access Network (RAN). It also includes the mobile core network, which manages subscriber data, call routing, and interconnections. Continuous deployment to enhance 4G LTE coverage and accelerate 5G rollout are primary activities.
    • Satellite Communication Infrastructure: This segment involves the operation of communication satellites and their associated ground infrastructure, including earth stations (gateways). Satellite networks provide crucial connectivity, especially in geographically remote, sparsely populated, or difficult-to-reach areas where deploying terrestrial networks is economically unviable or physically impractical.
  • List of types of players in each segment
    • Major integrated telecommunications operators (who typically own and operate both fixed and mobile infrastructure).
    • Wholesale infrastructure providers (companies specializing in building and leasing network capacity to other service providers, e.g., neutral fiber networks).
    • Tower companies (entities that own, build, and manage cellular towers, leasing space to mobile operators).
    • Satellite operators (companies that own and operate communication satellites).
    • Regional network builders (often smaller companies focused on deploying infrastructure in specific geographic areas).
  • Detailed description of the main activities within each segment.
    • Strategic network planning, detailed engineering, and architectural design of network expansions and upgrades.
    • Construction and deployment of physical network infrastructure, including civil works like trenching for fiber optic cables, installation of towers, and deployment of active network equipment.
    • Day-to-day operation, continuous monitoring (often using Network Operations Centers - NOCs), and preventative/corrective maintenance of all network assets to ensure high availability, reliability, and optimal performance.
    • Network capacity management, traffic engineering, and ongoing network optimization to adapt to changing usage patterns and ensure quality of service (QoS).
    • Providing wholesale access to elements of their network infrastructure (e.g., dark fiber, tower space, backhaul capacity) to other service providers.

• Connectivity Layer: This layer focuses on the actual delivery of telecommunications services to end-users, providing the vital connection between the customer and the network.

  • Identification and description of segments for each step of the value chain.
    • Mobile Connectivity: Provision of mobile voice communication, Short Message Service (SMS), Multimedia Messaging Service (MMS), and mobile data services utilizing various technologies (2G, 3G, 4G LTE, and increasingly 5G) to smartphones, tablets, and other mobile devices. This segment is typically divided into postpaid (contract-based) and prepaid (pay-as-you-go) offerings. A rapidly expanding sub-segment is Machine-to-Machine (M2M) and Internet of Things (IoT) connectivity, which uses mobile networks for communication between diverse connected devices.
    • Fixed Broadband Connectivity: Provision of high-speed internet access to residential and business premises. Fiber optic technology (FTTH/FTTB) is increasingly the dominant delivery method, offering superior speeds and reliability. However, services are also delivered via coaxial cable networks, Digital Subscriber Lines (DSL) over copper, fixed wireless access (FWA), and satellite. This segment includes a variety of service plans differentiated by download/upload speeds, data caps (if any), and bundled features.
    • Fixed Telephony: Provision of traditional voice communication services (Plain Old Telephone Service - POTS) over landlines. This segment has seen a steady decline in subscribers and relevance due to the widespread adoption of mobile communication and VoIP services.
  • List of types of players in each segment
    • Major national mobile and fixed-line telecommunications operators.
    • A large and growing number of regional and local Internet Service Providers (ISPs), particularly strong in fiber broadband.
    • Mobile Virtual Network Operators (MVNOs) that lease network capacity from MNOs to offer branded mobile services.
    • Satellite internet service providers focusing on specific market niches or geographic areas.
  • Detailed description of the main activities within each segment.
    • Marketing and sales activities aimed at acquiring new customers and managing existing subscriber accounts.
    • Providing comprehensive customer support, including technical assistance for service setup and troubleshooting.
    • Managing complex billing systems, revenue collection, and credit control.
    • Developing, packaging, and marketing various service plans, bundles (e.g., internet + mobile), and promotional offers.
    • Managing network access for connected users and devices, including authentication, authorization, and traffic prioritization.
    • Offering a range of value-added services (VAS) such as voicemail, caller ID, call waiting, data roaming packages, and parental controls.

• Navigation & Middleware Layer: This intermediary layer includes services and platforms that facilitate user interaction with the internet and online services, acting as enablers between the raw connectivity and the applications users ultimately consume.

  • Identification and description of segments for each step of the value chain.
    • Search Engines and Portals: Platforms (e.g., Google Search) that index the web and allow users to search for information online. Portals often aggregate various services like news, email, weather, and maps.
    • Browsers: Software applications (e.g., Chrome, Safari, Firefox, Edge) installed on user devices that enable them to access, retrieve, and display content from the World Wide Web.
    • Security Services: Providers of software and managed services designed to protect users, devices, and networks from a wide array of cyber threats, including viruses, malware, phishing, ransomware, and denial-of-service attacks. This includes antivirus software, firewalls, VPNs, and identity management solutions.
    • Electronic Payment Systems: Platforms and services that facilitate secure online financial transactions, including payment gateways, digital wallets, and online banking interfaces.
    • Operating Systems (OS): Core software (e.g., Android, iOS, Windows, Linux) that manages computer hardware and software resources, providing common services for computer programs and a user interface. Essential for accessing telecom services and running applications on devices.
  • List of types of players in each segment
    • Major global technology companies dominate many of these segments.
    • Specialized cybersecurity firms (global and local).
    • Financial technology companies (FinTechs) and traditional financial institutions.
  • Detailed description of the main activities within each segment.
    • Developing and continuously refining complex algorithms for information indexing and retrieval (search engines).
    • Designing, developing, distributing, and regularly updating web browser software to ensure compatibility, security, and performance.
    • Creating, implementing, and managing security protocols, software solutions, and threat intelligence services.
    • Building, operating, and securing robust platforms for processing online payments and managing financial transactions.
    • Developing, maintaining, and distributing operating systems for a wide range of devices (smartphones, computers, servers, IoT devices).

• Application Layer: This layer represents the vast and diverse ecosystem of applications, digital content, and online services that users access and consume over the network infrastructure provided by the preceding layers. This is where much of the perceived value for end-users is generated.

  • Identification and description of segments for each step of the value chain.
    • Content Providers: Companies, organizations, and individuals that create, produce, aggregate, and distribute various forms of digital content. This includes news articles, video (movies, series, user-generated), music, podcasts, games, e-books, and educational materials.
    • Online Service Providers (including OTTs): Companies offering a wide spectrum of services delivered over the internet. This includes e-commerce platforms, social media networks, cloud computing services (IaaS, PaaS, SaaS), online gaming platforms, and streaming media services (video-on-demand, live streaming, music streaming). These are often referred to as Over-The-Top (OTT) services as they run 'over the top' of the network providers' infrastructure.
    • Application Developers: Individuals and companies (from small startups to large enterprises) that design, code, and deploy mobile and web applications that run on various devices, providing specific functionalities, entertainment, or services to users.
    • Cloud Computing Providers: Companies offering on-demand computing resources, including Infrastructure as a Service (IaaS - e.g., virtual machines, storage), Platform as a Service (PaaS - e.g., development tools, databases), and Software as a Service (SaaS - e.g., CRM, office productivity suites). These are increasingly integral to the delivery and scalability of many online applications and services.
  • List of types of players in each segment
    • Media and entertainment companies (traditional and digital-native).
    • E-commerce retailers and marketplaces.
    • Social media platform companies.
    • Software development houses and independent developers.
    • Global and local cloud service providers.
    • Individual content creators, influencers, and bloggers.
  • Detailed description of the main activities within each segment.
    • Creating, curating, licensing, and publishing a wide variety of digital content.
    • Developing, deploying, operating, and managing sophisticated online platforms and services.
    • Designing user interfaces (UI) and user experiences (UX), coding, testing, and continuously updating mobile and web applications.
    • Providing and managing scalable and resilient cloud infrastructure and services.
    • Monetizing content and services through diverse models, including advertising, subscriptions, direct sales, transaction fees, and in-app purchases.

• Customers Layer: This final layer consists of the individuals, households, businesses (of all sizes), and public sector entities that are the ultimate end-users and consumers of the telecommunications services and the multitude of applications and content delivered over the networks.

  • Identification and description of segments for each step of the value chain.
    • Residential Customers: Individual consumers and households subscribing to a mix of services such as mobile plans, fixed broadband internet, (declining) fixed telephony, and potentially pay TV services for personal communication, information access, education, entertainment, and increasingly, smart home connectivity.
    • Business Customers (B2B): Enterprises ranging from micro and small businesses (SMBs) to large national and multinational corporations, utilizing telecommunications services as critical tools for their daily operations. This includes basic connectivity, dedicated corporate networks (e.g., MPLS, SD-WAN), cloud connectivity solutions, specialized M2M/IoT solutions for various industries (e.g., logistics, agriculture, manufacturing), and unified communication and collaboration (UCC) services.
    • Government and Public Sector: Federal, state, and municipal government bodies, as well as public institutions (schools, hospitals), using telecommunications for public administration, delivering citizen services (e-government), internal communication, public safety, and enabling smart city initiatives.
  • List of types of players in each segment
    • Individual citizens and households across all socio-economic strata.
    • Micro, small, medium, and large enterprises spanning all economic sectors.
    • Federal, state, and municipal government entities and agencies.
    • Non-governmental organizations (NGOs) and non-profit institutions.
  • Detailed description of the main activities within each segment.
    • Actively subscribing to, paying for, and consuming a variety of telecommunications services.
    • Utilizing connectivity for diverse purposes: communication (voice, messaging, video calls), accessing information and news, conducting work or business, pursuing education, enjoying entertainment, and managing personal affairs.
    • For businesses: Implementing and leveraging telecommunications and IT solutions to support core business processes, enhance productivity, enable digital transformation initiatives, and engage with customers.
    • For specific industries: Deploying and managing M2M/IoT devices for applications such as smart grids, environmental monitoring, asset tracking, telehealth, smart agriculture, and industrial automation.
    • Accessing public services, government information, and participating in civic life online.

Show estimates of volumes and sizes of each step in the value chain.

Estimating precise monetary values or distinct volumes for each specific layer across the entire Brazilian telecom value chain presents challenges due to overlapping activities, integrated company structures, and the way financial data is typically reported at a sector or company level rather than by value chain layer. However, based on available industry data, we can provide figures related to overall market size, capital expenditures (Capex), and the number of connections, primarily reflecting the scale of the downstream layers (Connectivity and Customers).

• Overall Sector Revenue: The Brazilian telecommunications sector reported a gross revenue of R$ 279.4 billion in 2023. In the first nine months of 2024, the gross revenue reached R$ 217.3 billion, indicating stability in real terms when compared to the corresponding period in 2023. The estimated net revenue for the full year 2024 is R$ 181.7 billion. The sector's revenue demonstrated a growth of 6.6% in 2024.
• Overall Sector Investments (Capex): Investments made by telecommunications companies operating in Brazil amounted to R$ 35 billion in 2023. For the first nine months of 2024, these investments totaled R$ 24.5 billion, which represents a real decrease of 4.6% year-on-year. The projected investment for the entirety of 2024 is anticipated to be around R$ 35 billion. These investments are primarily directed towards the expansion of 5G networks into smaller cities and the continued build-out of fiber optic infrastructure. This Capex predominantly supports the Equipment & Software and Network Layers of the value chain.
• Connectivity Layer - Mobile Segment:
  • The total number of mobile accesses in Brazil at the close of 2024 stood at 263.4 million.
  • Mobile lines designated for human use (excluding M2M/IoT connections) reached 216 million by the end of 2024.
  • Machine-to-Machine (M2M) and Internet of Things (IoT) connections accounted for 47.3 million accesses at the end of 2024.
  • 5G technology adoption saw significant growth, with 5G connections reaching 39.9 million by December 2024.
• Connectivity Layer - Fixed Broadband Segment:
  • Total fixed broadband accesses reached 53.3 million as of October 2024. More recent data from February 2025 indicates 51.6 million accesses.
  • Fiber optic technology constituted the vast majority of these connections, with 41.3 million fiber accesses reported in October 2024, representing 77.4% of the total fixed broadband market.
• Connectivity Layer - Fixed Telephony Segment:
  • The total number of fixed telephony accesses was recorded at 23.8 million in June 2024, reflecting the ongoing decline in this segment.
• Customers Layer:
  • The scale of this layer is directly reflected in the access numbers detailed above for mobile and fixed broadband. The substantial figures indicate a vast and diverse customer base, encompassing a large majority of the Brazilian population and a significant number of businesses. Data indicates that nine out of ten Brazilians have access to mobile phones, and in 2023, 86.9% of households reported using fixed internet services.

Specific, disaggregated volume or market size data for the Navigation & Middleware and Application layers, when attributed solely to the value generated within the confines of the Brazilian telecom value chain (as distinct from the broader digital economy and global platform revenues), is not readily available in the referenced sources. These layers involve many global players and activities whose economic impact extends beyond traditional telecommunications service revenue streams.

Value Chain Summary Table

Value Chain Step	Main Activities	Segments	Types of Players	Examples of Main Players	Volumes and Sizes (Estimates - Brazil)
Equipment & Software	Design, manufacturing, and supply of physical and digital network components.	Network Equipment Manufacturing, Component Manufacturing, Software Development.	Multinational corporations, Semiconductor manufacturers, Software companies.	Nokia, Ericsson, Huawei, Cisco, Qualcomm, Intel.	Investments in the sector (includes equipment) were R$ 35 billion in 2023; R$ 24.5 billion (Jan-Sep 2024), with expected R$ 35 billion for the full year 2024. Specific segment size not detailed.
Network	Deployment and management of physical network infrastructure (fixed and mobile).	Fixed Network Infrastructure, Mobile Network Infrastructure, Satellite Communication Infrastructure.	Major operators, Infrastructure companies (neutral hosts), Tower companies, Satellite operators, Regional network builders.	Vivo, Claro, TIM (own infrastructure), V.tal (fiber neutral host), Starlink (satellite).	Covered within overall sector investments. Specific infrastructure volumes (e.g., fiber km, tower count) across all players are not comprehensively detailed in the sources. V.tal operates a significant fiber network.
Connectivity	Providing access to telecommunications networks and the internet.	Mobile Connectivity (Prepaid, Postpaid, M2M/IoT), Fixed Broadband (Fiber, Coaxial, DSL, Radio, Satellite), Fixed Telephony.	Major national operators, Regional ISPs, MVNOs, Satellite internet providers.	Vivo, Claro, TIM, Oi, Brisanet, Unifique, Vero, Desktop, Algar, Starlink, Surf (MVNO).	Total Mobile Accesses: 263.4 million (end 2024). 5G Accesses: 39.9 million (Dec 2024). IoT/M2M Accesses: 47.3 million (end 2024). Fixed Broadband Accesses: 53.3 million (Oct 2024). Fiber Optic Accesses: 41.3 million (Oct 2024). Fixed Telephony Accesses: 23.8 million (Jun 2024).
Navigation & Middleware	Services and platforms facilitating online navigation and access.	Search Engines and Portals, Browsers, Security Services, Electronic Payment Systems, Operating Systems.	Major global technology companies, Cybersecurity firms, FinTechs.	Google, Microsoft, Apple, various local payment and security providers.	Specific volumes and sizes for these segments within the Brazilian telecom value chain are not detailed. Primarily driven by global tech companies.
Application	Provision of digital content and online services accessed via networks.	Content Providers, Online Service Providers, Application Developers, OTT service providers, Cloud Service Providers.	Media and entertainment companies, E-commerce companies, Social media companies, Software development companies, Cloud service providers, OTTs.	Netflix, Google, Meta, Amazon, Spotify, various Brazilian digital companies.	Specific volumes and sizes for these segments within the Brazilian telecom value chain are not detailed. This layer is diverse and spans multiple industries.
Customers	Consumption of telecommunications services and access to applications and content.	Residential Customers, Business Customers (B2B, M2M/IoT), Government and Public Sector.	Individual citizens, Enterprises (SMEs, Large), Government entities, NGOs.	The entire population of Brazil, all registered businesses, and governmental bodies utilizing telecom services.	Reflects the access numbers in the Connectivity Layer. High mobile penetration (9 in 10 Brazilians with access) and significant fixed internet usage in households (86.9% in 2023).

Players Analysis

The Brazilian telecommunications market is characterized by the presence of large, established national operators, a vibrant and growing segment of regional Internet Service Providers (ISPs), global equipment and software vendors, and an increasing number of players in the digital application and content space.

Profiles of Key Players

Several key players dominate the Brazilian telecommunications landscape, particularly in the network and connectivity layers:

• Vivo (Telefônica Brasil): A subsidiary of the Spanish Telefónica Group, Vivo stands as a dominant force in the Brazilian telecommunications market. The company offers a comprehensive portfolio of services, including mobile telephony (where it consistently holds the largest market share), fixed broadband internet (with a significant and expanding fiber optic FTTH network), traditional fixed telephony, and pay TV services. Vivo has been actively investing in the modernization of its network infrastructure, with a strong strategic focus on the rollout of 5G technology and the continued expansion of its fiber-to-the-home footprint to capture the growing demand for high-speed internet. Its extensive customer base and network coverage give it a significant competitive advantage.

• Claro (América Móvil): Owned by the Mexican telecommunications giant América Móvil, Claro is a major competitor across all primary telecom segments in Brazil. Claro provides extensive mobile coverage and services, competing closely with Vivo for market leadership. In the fixed broadband segment, Claro is a leading provider, utilizing a combination of technologies including a substantial Hybrid Fiber-Coaxial (HFC) cable network and an increasingly important fiber optic network. The company holds a significant market share in both mobile and fixed broadband services and is also a key participant in the nationwide deployment of 5G technology, aiming to enhance its service offerings and network capacity.

• TIM (Telecom Italia Mobile): A subsidiary of Telecom Italia, TIM is another prominent mobile operator in Brazil. While historically stronger in mobile, TIM has been strategically expanding its presence in the fixed broadband market, primarily through investments in fiber optic infrastructure (TIM Live). It is typically the third-largest mobile operator by market share but maintains a strong competitive stance against Vivo and Claro. TIM is actively involved in the 5G rollout, viewing it as a critical technology for future growth and for enhancing its service offerings in both consumer and business segments. The company is also focused on increasing its share in the valuable postpaid mobile segment.

• Oi: Oi is a historical incumbent operator in Brazil that has been undergoing a significant corporate restructuring and judicial recovery process. As part of this transformation, Oi has divested several key assets, most notably its mobile operations (which were acquired by a consortium of Vivo, Claro, and TIM). The company's strategy is now primarily focused on its extensive fiber optic infrastructure and providing enterprise services. While its market share in traditional fixed services (telephony and broadband) has seen a decline, its fiber network assets, a significant portion of which were transferred to form the backbone of V.tal (a neutral fiber network operator in which Oi holds a stake), remain a crucial component of Brazil's national telecommunications infrastructure.

• Brisanet: Brisanet is a leading example of the remarkable success and growth of regional Internet Service Providers (ISPs) in Brazil. Operating predominantly in the Northeast region, Brisanet has constructed a substantial proprietary fiber optic network, allowing it to capture a significant share of the fixed broadband market within its extensive service areas. The company has demonstrated agility and a strong customer focus. More recently, Brisanet has diversified its service offerings by acquiring 5G spectrum and launching mobile services, initially as an MVNO and with plans for its own mobile network, further challenging the established national players in its regions.

• V.tal: Positioned as a wholesale-only, neutral fiber network operator, V.tal has emerged as a critical infrastructure player in the Brazilian market. Formed largely from the extensive fiber optic infrastructure assets of Oi, V.tal's business model is centered on providing open and neutral access to its vast fiber network to a diverse range of clients. These include telecommunications operators (including the major national players), internet service providers (both large and small), and other enterprises. By offering wholesale fiber solutions, V.tal plays a crucial role in facilitating the expansion of fiber broadband connectivity across Brazil, particularly benefiting smaller and regional players who can leverage V.tal's infrastructure rather than undertaking massive independent build-outs.

Examples of Main Players and Their Activities

The activities of these players span the value chain: - Equipment & Software Providers: Nokia, Ericsson, and Huawei are key suppliers of network infrastructure (base stations, core network elements) to Brazilian operators. Cisco provides routing and switching equipment. Qualcomm and Intel supply essential chipsets and components. - Network Infrastructure Owners/Operators: Vivo, Claro, and TIM own and operate extensive national mobile and fixed networks. V.tal operates a vast neutral fiber network. Tower companies manage passive mobile infrastructure. Starlink provides satellite network infrastructure. - Connectivity Service Providers: - Mobile: Vivo, Claro, and TIM are the dominant Mobile Network Operators (MNOs). Regional players like Brisanet and Unifique are entering as MNOs/MVNOs. MVNOs such as Surf, Datora, NLT, and Telecall cater to niche segments, including M2M/IoT. - Fixed Broadband: Claro, Vivo, and Oi are major national providers. However, a large and dynamic group of regional ISPs, including Brisanet, Unifique, Vero Internet, Desktop, and Algar Telecom, collectively hold a substantial market share, particularly in fiber optic connections. Starlink provides satellite broadband. - Navigation & Middleware Providers: Global giants like Google (Search, Android OS, Chrome), Microsoft (Windows OS, Edge), and Apple (iOS, Safari) dominate these segments. Local FinTechs and cybersecurity firms also play roles. - Application & Content Providers: This layer is highly diverse, featuring global OTT players like Netflix, Spotify, Amazon (Prime Video, AWS), Google (YouTube, Play Store), and Meta (Facebook, Instagram, WhatsApp), alongside numerous Brazilian e-commerce sites, media companies, and application developers.

Estimates of Volumes and Sizes of the Players

The Brazilian telecom market exhibits large volumes of connections and substantial financial activity, with market shares indicating the competitive positioning of key players.

• Market Revenue (Sector-wide):

  • Gross Revenue (2023): R$ 279.4 billion.
  • Gross Revenue (Jan-Sep 2024): R$ 217.3 billion.
  • Estimated Net Revenue (2024): R$ 181.7 billion.

• Investments (Capex, Sector-wide):

  • Total Investments (2023): R$ 35 billion.
  • Investments (Jan-Sep 2024): R$ 24.5 billion.
  • Expected Full Year Investment (2024): Approximately R$ 35 billion, focused on 5G and fiber.

• Mobile Connections and Market Share:

  • Total Mobile Accesses (End of 2024): 263.4 million.
    • Human Lines: 216 million.
    • M2M/IoT Connections: 47.3 million.
  • 5G Connections (December 2024): 39.9 million.
  • Mobile Market Share (Q2 2024, human lines):
    • Vivo: 38.8%
    • Claro: 34.0%
    • TIM: 23.8%
    • Others (Regional Operators and MVNOs): Remaining percentage.

• Fixed Broadband Connections and Market Share:

  • Total Fixed Broadband Connections (October 2024): 53.3 million.
  • Fiber Optic Accesses (October 2024): 41.3 million (77.4% of total).
  • Fixed Broadband Market Share (February 2025, by accesses):
    • Claro: 20.0% (significant HFC base, growing fiber)
    • Vivo: 14.4% (strong fiber growth)
    • Oi: 8.3% (declining, focus on fiber via V.tal partnership)
    • Regional Providers (Competitive Providers/PPPs): Collectively hold a significant 36.2% of the market. This group, including players like Brisanet, Unifique, Vero, and Desktop, dominates in terms of fiber optic subscribers, accounting for approximately 66.8% of all fiber connections, highlighting their crucial role in expanding high-speed internet access across Brazil, particularly outside major urban centers.

• Fixed Telephony Connections:

  • Total Fixed Telephony Accesses (June 2024): 23.8 million (segment in continuous decline).

These figures underscore the massive scale of the Brazilian telecom market, particularly in connectivity services. The substantial ongoing investments in infrastructure, driven by the nationwide expansion of fiber optics and the progressive rollout of 5G technology, indicate the sector's dynamism. The competitive landscape is marked by the dominance of a few large players in mobile, while the fixed broadband market shows a more fragmented structure with a strong and growing presence of regional providers who have been pivotal in driving fiber adoption.

Commercial Relationships

The telecommunications value chain in Brazil is a complex, multi-layered ecosystem characterized by a diverse array of commercial relationships that connect various players, from foundational infrastructure providers to the end consumers of digital services. These relationships are predominantly Business-to-Business (B2B) and Business-to-Consumer (B2C), with an increasing prevalence of Business-to-Business-to-Consumer (B2B2C) models and significant interactions involving government entities (B2G).

At the base of the value chain, the Equipment & Software Layer operates primarily on a B2B model. Global manufacturers of telecommunications equipment (e.g., network hardware) and software developers, such as Nokia, Ericsson, Huawei, Cisco, Qualcomm, and Intel, engage in direct commercial agreements with Brazilian telecommunications operators (e.g., Vivo, Claro, TIM, Oi) and specialized network infrastructure builders (like V.tal and numerous regional ISPs). These relationships involve the sale, licensing, and, in some cases, leasing of essential hardware components (routers, switches, base stations, fiber optic cables, antennas) and critical software platforms (network management systems, operational support systems (OSS), business support systems (BSS) for billing, customer relationship management (CRM) tools). The commercial interactions are frequently structured around large-scale procurement contracts. These contracts often extend beyond the mere supply of equipment to include comprehensive service level agreements (SLAs) covering ongoing maintenance, technical support, software updates, and professional services for network planning and deployment. Given the highly specialized nature of this infrastructure and the significant capital investment required, these tend to be long-term strategic relationships. Component manufacturers, who supply essential electronic parts (semiconductors, processors) to larger equipment assemblers, also operate within a B2B supply chain. Manufacturers of Customer Premises Equipment (CPE), such as modems, routers, and set-top boxes, maintain B2B relationships with connectivity providers, supplying the devices necessary for establishing the last-mile connection to homes and businesses.

Moving upwards, the Network Layer involves crucial B2B relationships centered on network infrastructure access and sharing. The major integrated operators (Vivo, Claro, TIM) own and operate extensive fixed and mobile networks, managing internal commercial considerations between their infrastructure divisions and their retail service operations. A significant development in the Brazilian market has been the emergence of dedicated wholesale infrastructure providers, most notably V.tal in the fiber optic segment. V.tal’s business model is exclusively wholesale; it offers neutral and open access to its extensive fiber network to a wide range of retail service providers, including the major national operators as well as numerous regional ISPs. These relationships are formalized through contracts for leasing dark fiber pairs, acquiring managed bandwidth services, or utilizing other infrastructure-as-a-service offerings. Tower companies, which specialize in owning and managing mobile tower infrastructure, engage in B2B leasing agreements with mobile network operators, providing the physical sites required for the deployment of radio access network (RAN) equipment. Satellite operators, such as Starlink, establish commercial relationships to provide satellite broadband services, sometimes forming strategic partnerships with local entities like Telebras to leverage existing ground infrastructure or to reach specific, often remote, market segments where terrestrial networks are economically unviable.

The Connectivity Layer is where commercial relationships become more directly focused on the end-user, encompassing both B2C and B2B interactions. National mobile and fixed-line operators (Vivo, Claro, TIM, Oi) are the primary players in this layer, offering a broad range of connectivity services directly to residential consumers (B2C) and to businesses of all sizes (B2B). Regional ISPs, which have a strong presence in specific geographic areas, also maintain a significant volume of B2C relationships for fixed broadband services, often competing fiercely with national players on price and service quality in their localities. These commercial engagements are typically structured around service contracts for mobile plans (which are further segmented into prepaid and postpaid offerings) and fixed broadband subscriptions, involving recurring monthly billing and ongoing customer support interactions. For business customers, the relationships are often more complex and customized, involving tailored service packages, dedicated account management, and B2B contracts for services such as dedicated internet access (DIA), corporate Virtual Private Networks (VPNs), cloud connectivity, and integrated Machine-to-Machine (M2M)/Internet of Things (IoT) connectivity solutions. Mobile Virtual Network Operators (MVNOs) introduce a B2B2C dynamic into this layer: they purchase mobile network capacity from major MNOs at wholesale rates (a B2B transaction) and then sell branded mobile services directly to their own defined customer base (B2C or specialized B2B segments, such as IoT solutions for specific industries).

In the Navigation & Middleware Layer, the commercial relationships are often less direct from a traditional telecom billing perspective but are nonetheless vital to the functioning of the broader digital ecosystem. Global technology companies (e.g., Google, Microsoft, Apple) that provide search engines, web browsers, and operating systems engage with users, frequently through business models supported by advertising revenue, platform fees, or as part of a broader ecosystem strategy rather than direct service charges to the end-user for these specific tools. Cybersecurity firms offer B2B services to telecom operators, enterprises, and even individual consumers, providing security software (antivirus, firewalls) and managed security services on a contractual or subscription basis to protect networks, data, and devices. FinTech companies that provide electronic payment systems establish B2B relationships with merchants and businesses (enabling them to accept online payments) and B2C relationships with consumers (providing digital wallets, payment apps, and other financial tools). The functionality of these payment services fundamentally relies on the underlying telecom network for secure and reliable transaction processing.

The Application Layer thrives on a vast and intricate web of commercial relationships, primarily B2C and B2B, driven by the creation, distribution, and consumption of digital content and online services. Content providers, such as streaming services (e.g., Netflix, Spotify) and traditional or digital-native media companies, engage in B2C relationships with individual subscribers, typically through monthly or annual subscription fees. Online service providers, a broad category encompassing e-commerce platforms (e.g., Amazon, Mercado Livre), social media networks (e.g., Meta's Facebook and Instagram), cloud computing providers (e.g., AWS, Microsoft Azure, Google Cloud), and online gaming platforms, have both B2C and B2B relationships, depending on the specific nature of the service offered. For instance, e-commerce platforms facilitate B2C and B2B transactions, earning revenue through commissions, listing fees, or advertising. Cloud providers predominantly offer B2B services to businesses of all sizes, providing computing resources, storage, and software applications on a pay-as-you-go or subscription basis. Application developers engage in B2C and B2B relationships through app stores (like Google Play Store and Apple App Store) and direct sales, offering a wide variety of mobile and web applications that often employ freemium, subscription, or one-time purchase models. The interaction between these Application Layer players (often referred to as Over-The-Top or OTT providers) and the Network Layer operators represents a critical and sometimes contentious commercial dynamic. This is marked by ongoing debates globally and in Brazil concerning network usage, fair share contributions to infrastructure costs, and net neutrality, reflecting a complex, interdependent, yet occasionally strained relationship.

Finally, the Customers Layer represents the demand side of the value chain, where individuals, households, businesses, and government entities engage in commercial relationships to acquire and utilize the full spectrum of telecommunications services and digital content. Residential customers enter into service contracts with operators and ISPs for mobile and fixed services, making recurring payments for the agreed-upon service levels. Business customers establish B2B agreements for a wide range of communication and IT solutions tailored to their specific operational needs, often involving more sophisticated service level guarantees and support structures. Government and public sector entities engage in formal procurement processes to acquire telecommunications services and fund infrastructure projects designed to support public administration, deliver citizen services efficiently, and develop strategic initiatives like smart cities. The commercial relationships established in this layer are the ultimate revenue-generating endpoints for all the providers operating in the upstream layers of the value chain.

Bottlenecks and Challenges

Despite being a dynamic and rapidly evolving market, particularly with the advancements in 5G and fiber optic deployment, the Brazilian telecommunications value chain is confronted by several significant bottlenecks and persistent challenges. These factors can impede its optimal development, impact the quality, affordability, and availability of services, and affect the profitability and investment capacity of the players involved.

A primary and often cited bottleneck lies within the regulatory and bureaucratic landscape. While Anatel, the national telecommunications agency, has made efforts to modernize regulations and foster competition, the inherent complexity of obtaining licenses, the often lengthy and cumbersome permitting processes required for infrastructure deployment (especially for the installation of new cellular towers and the laying of fiber optic routes), and the need to navigate a patchwork of varying municipal regulations can introduce significant delays and substantially increase the operational costs for service providers. The ongoing discussion and uncertainty surrounding the future of fixed telephony concessions and the broader development of a new, updated regulatory framework for the sector also create an environment of anticipation and potential disruption, making long-term planning more challenging. Furthermore, the tax structure applied to telecom services in Brazil is notoriously complex and burdensome. Changes resulting from broader tax reforms, while potentially beneficial in the long run, can pose immediate challenges for companies in terms of compliance, managing their tax obligations effectively, and adapting their pricing strategies, which can ultimately impact consumers.

Infrastructure deployment and universalization of access, particularly to ensure comprehensive coverage across the vast and geographically diverse Brazilian territory, remains a significant and enduring challenge. While fiber optic networks are rapidly expanding, particularly in urban and more densely populated areas, extending high-quality, affordable connectivity to remote, rural, and less economically attractive regions is a formidable task. This is due to the high per-subscriber costs of civil works, equipment deployment, and ongoing maintenance in such areas. The successful and timely rollout of 5G technology across the country, while progressing, requires substantial and continuous investment in new base stations, network densification (requiring more cell sites), and robust backhaul capacity. This faces hurdles in site acquisition, obtaining necessary permits from local authorities, and ensuring adequate spectrum availability and efficient use. Efficient and equitable sharing of existing passive infrastructure, such as utility poles for aerial fiber deployment and duct systems, among different service providers is crucial for reducing deployment costs and accelerating network expansion. However, disagreements over access terms, pricing, and a lack of uniformly enforced regulations can create significant bottlenecks in this area. Historical issues related to the reliability and the pressing need for upgrading older segments of telecommunications infrastructure (e.g., legacy copper networks) also highlight ongoing challenges in maintaining and modernizing the national network backbone to meet escalating data demands.

The evolving relationship and commercial dynamics between telecommunications network operators and large digital content and application providers (often referred to as Over-The-Top or OTTs) represent a significant structural bottleneck and a point of ongoing contention within the industry. Telecom operators consistently argue that these global OTT platforms (streaming services, social media, large cloud providers) consume a disproportionate and ever-increasing amount of network capacity. This high data consumption drives the need for continuous and costly infrastructure investments by the operators, yet these OTTs, in many cases, do not contribute directly to the funding of these essential networks. This perceived imbalance in value capture, where OTTs extensively monetize their services delivered over infrastructure largely funded by operators and their end-customers, is viewed by many operators as unsustainable in the long term. They argue it acts as a disincentive for further network investment, particularly in expanding coverage to underserved or less profitable areas. The global and Brazilian debate about "fair share" – whether and how OTTs should contribute to network costs or to universalization funds – reflects this fundamental challenge in the value chain's current economic model and its long-term sustainability.

Intense market competition, while generally beneficial for consumers by driving down prices and encouraging service innovation, can simultaneously create significant challenges for operators in terms of maintaining profitability and generating sufficient returns on their substantial capital investments. The Brazilian market is highly competitive in both the mobile segment (dominated by a few large players) and the fixed broadband segment (where major national players compete fiercely with a dynamic and growing contingent of regional ISPs). This intense competitive pressure can lead to price wars, reduced average revenue per user (ARPU), and squeezed profit margins. This, in turn, may impact the financial capacity of some operators to invest adequately in necessary network upgrades, technological innovation (like full 5G standalone capabilities), and crucial service expansion.

The acquisition, development, and retention of skilled talent is becoming an increasingly critical challenge for the entire telecom ecosystem, particularly given the rapid technological shifts reshaping the industry. There is a growing demand for professionals with specialized expertise in areas such as 5G network architecture and management, cloud computing integration, advanced cybersecurity, data analytics, artificial intelligence (AI) and machine learning (ML) for network optimization and customer service, and IoT solution development. A shortage of readily available skilled labor in these cutting-edge fields can slow down the pace of innovation, hinder operational efficiency, and delay the adoption of new technologies.

Ensuring robust cybersecurity across the increasingly complex and interconnected network infrastructure, and defending against a constantly evolving landscape of sophisticated cyber threats, is a continuous and escalating challenge for all players in the value chain. Protecting sensitive customer data, preventing network outages or disruptions due to cyberattacks (such as DDoS or ransomware), and ensuring the integrity and reliability of communication services require significant ongoing investment in advanced security technologies, skilled cybersecurity personnel, and proactive threat intelligence capabilities.

Finally, the increasing global and societal focus on environmental sustainability presents a new set of challenges for the telecom sector. These include managing the significant energy consumption of networks (especially with 5G densification and data centers), promoting the responsible disposal and recycling of electronic waste (e-waste) generated from equipment upgrades and obsolete devices, and the broader need to adopt more sustainable and environmentally friendly operational practices throughout the entire value chain, from manufacturing to service delivery.

Addressing these multifaceted bottlenecks and challenges effectively will require concerted and collaborative efforts from industry players, regulatory bodies like Anatel, government policymakers, and other stakeholders to ensure the continued growth, innovation, and societal contribution of the Brazilian telecommunications sector and its value chain.

Value Chain Relationships and Business Models

The commercial relationships within Brazil's telecom value chain are multifaceted, involving a complex interplay of product and service exchanges governed by diverse business models. These transactions, while essential for the functioning of the ecosystem, are also subject to specific bottlenecks and challenges that can impact efficiency and value distribution.

1. Equipment & Software Layer to Network/Connectivity Layers: * Products/Services Exchanged: Network hardware (base stations, routers, switches, optical transport), software (OSS/BSS, network management systems), CPE (modems, set-top boxes), installation, maintenance, and upgrade services. * Business Models Used: * Direct Sales & Large Procurement Contracts: Equipment vendors (Nokia, Ericsson, Huawei) sell hardware directly to operators (Vivo, Claro, TIM) and infrastructure companies (V.tal) often through extensive, long-term contracts. * Software Licensing: Software providers license their platforms (e.g., BSS/OSS suites) on a per-user, per-capacity, or enterprise-wide basis. * Managed Services/Support Contracts: Vendors offer ongoing technical support, maintenance, and even fully managed network operations for a recurring fee. * Main Bottlenecks and Challenges in Transactions: * High Capital Expenditure: The acquisition of advanced network equipment requires substantial upfront investment by operators, potentially straining budgets. * Supply Chain Disruptions: Global dependencies for components (e.g., semiconductors) can lead to delays and price volatility, impacting deployment timelines. * Technological Lock-in: Long-term contracts with specific vendors can sometimes lead to technological lock-in, making it difficult or costly to switch suppliers or integrate multi-vendor solutions. * Complex Integration: Integrating new equipment and software from various vendors into existing legacy systems is often complex, time-consuming, and prone to interoperability issues. * Import Duties and Taxes: Brazil's tax regime can add significant costs to imported equipment and software, impacting overall project economics.

2. Network Layer (Infrastructure Providers) to Connectivity Layer (Service Providers): * Products/Services Exchanged: Wholesale access to physical infrastructure, such as dark fiber, lit fiber capacity (wavelengths, Ethernet), tower space for antenna mounting, and backhaul connectivity. * Business Models Used: * Wholesale Leasing/Capacity Agreements: Neutral hosts like V.tal lease fiber optic network capacity to multiple retail ISPs and MNOs. Tower companies lease space on their towers. * Infrastructure Sharing Agreements: Operators may enter into agreements to share specific passive (e.g., ducts, poles) or even active (e.g., RAN sharing) network elements to reduce deployment costs. * Main Bottlenecks and Challenges in Transactions: * Pricing and Access Terms: Disputes can arise over the fairness and transparency of pricing for wholesale access to essential infrastructure (e.g., pole access, fiber lease rates). * Quality of Service (QoS) Guarantees: Ensuring consistent and reliable QoS on leased infrastructure can be challenging for retail providers who do not own the underlying assets. Defining and enforcing SLAs is critical. * Regulatory Oversight: The regulatory framework for infrastructure sharing and wholesale access needs to be clear, consistently enforced, and adaptable to new technologies to prevent anti-competitive behavior and ensure fair access. * Geographic Availability: While wholesale infrastructure is expanding, its availability, particularly high-capacity fiber, may still be limited or non-existent in less commercially attractive remote or rural areas.

3. Connectivity Layer to Customers Layer (B2C and B2B): * Products/Services Exchanged: Mobile voice and data plans (prepaid/postpaid), fixed broadband internet subscriptions, fixed telephony, pay-TV packages, M2M/IoT connectivity solutions, dedicated enterprise services (VPNs, leased lines). * Business Models Used: * Subscription Models (Prepaid/Postpaid): Dominant for mobile and fixed broadband services, involving recurring payments for defined service packages. * Bundling: Offering multiple services (e.g., internet + mobile + TV) in a single package, often at a discounted price, to increase ARPU and customer stickiness. * Tiered Pricing: Offering different service levels (e.g., internet speed tiers, mobile data allowances) at varying price points. * Usage-Based Models (for some M2M/IoT or enterprise services): Billing based on actual data consumption or number of connected devices. * Main Bottlenecks and Challenges in Transactions: * Service Quality and Reliability: Inconsistent service quality, network outages, or speeds not matching advertised levels are major sources of customer dissatisfaction and churn. This is particularly acute in areas with older infrastructure or during network congestion. * Customer Service and Billing Complexity: Difficulties in resolving customer issues, complex billing statements, and disputes over charges can damage customer relationships. * Digital Divide and Affordability: While connectivity is widespread, affordability remains a challenge for low-income segments, and a digital divide persists in terms of access to quality broadband, particularly in remote regions. * Competition and Price Pressure: Intense competition, especially from regional ISPs in the fixed broadband market, can lead to aggressive pricing, impacting operator margins and potentially long-term investment capabilities. * Contractual Terms and Transparency: Complex contract terms, early termination fees, and lack of transparency in service offerings can lead to customer frustration.

4. Application/Navigation & Middleware Layers to Customers Layer (and interaction with Connectivity Layer): * Products/Services Exchanged: Access to online content (streaming video/music), social media platforms, e-commerce, cloud services, search engines, operating systems, applications. * Business Models Used: * Advertising-Supported: Many online platforms (search, social media, some content) offer free access to users, generating revenue from advertising. * Subscription (OTTs): Services like Netflix and Spotify charge recurring fees for access to their content libraries. * Freemium: Basic services are free, with premium features available for a fee (common in apps and some SaaS). * Transaction Fees/Commissions: E-commerce platforms and payment gateways charge fees on transactions. * Direct Sales/App Purchases: Software and apps sold directly to consumers or businesses. * Main Bottlenecks and Challenges in Transactions: * Net Neutrality Concerns: Debates around whether ISPs can prioritize or throttle certain types of internet traffic, potentially affecting the user experience for specific applications. * Data Privacy and Security: Concerns over how application providers and platforms collect, use, and protect user data are significant. Data breaches can severely damage trust. * "Fair Share" Debate (OTTs vs. Telcos): The most prominent transactional bottleneck is the contention between OTTs (heavy users of network bandwidth) and network operators (who build and maintain the infrastructure). Operators argue that OTTs should contribute financially to network costs, while OTTs often resist such charges, citing potential impacts on innovation and consumer costs. This impacts investment decisions and inter-segment relationships. * Content Discovery and Platform Dominance: The dominance of a few large global platforms can make it difficult for smaller content creators or application developers to gain visibility and reach users. * Digital Literacy: Effective use of applications and online services requires a certain level of digital literacy, which may be a barrier for some segments of the population.

These intertwined relationships and business models highlight a dynamic but also friction-prone value chain. Addressing the bottlenecks in these transactions is key to fostering a healthier and more efficient telecom and digital ecosystem in Brazil, ensuring fair value distribution and encouraging continued investment across all layers.

Conclusion

The telecommunications industry in Brazil is a vital and rapidly evolving sector, characterized by substantial investments, particularly in 5G and fiber optic technologies, aimed at enhancing connectivity and enabling a broader digital transformation across the nation. This report has detailed the intricate value chain of this industry, segmenting it into distinct layers: Equipment & Software, Network, Connectivity, Navigation & Middleware, Application, and Customers. Each layer involves specific activities, diverse players, and unique contributions to the overall delivery of telecom services.

Key findings indicate that while major national operators like Vivo, Claro, and TIM continue to dominate the mobile segment and maintain significant presence in fixed broadband, the landscape is increasingly shaped by the dynamism of regional Internet Service Providers who have become pivotal in expanding fiber optic access, especially outside major metropolitan areas. The emergence of neutral wholesale network providers like V.tal is also a critical development, fostering infrastructure sharing and competition. The financial health of the sector, evidenced by significant revenues and ongoing capital expenditures, underscores its economic importance. However, the industry is not without its challenges. Regulatory complexities, the high cost and logistical difficulties of infrastructure deployment across Brazil's vast territory, intense market competition impacting profitability, and the ongoing debate concerning the fair contribution of Over-The-Top service providers to network costs remain significant hurdles. Furthermore, ensuring robust cybersecurity and developing a skilled workforce are persistent areas requiring attention.

The commercial relationships within the value chain are complex, involving a mix of B2B, B2C, and B2B2C interactions governed by diverse business models ranging from direct sales and licensing in the upstream segments to subscription and advertising-based models in the downstream and application layers. Bottlenecks in these transactions, such as supply chain vulnerabilities for equipment, disputes over wholesale access terms, service quality assurance, and data privacy concerns, can impact the efficiency and growth of the entire ecosystem.

For further research, deeper investigation into the long-term economic impact of neutral fiber networks on market competition and service affordability would be valuable. Additionally, a more granular analysis of the evolving business models in the Application Layer, particularly the revenue-sharing dynamics between content/application providers and network operators, could offer insights into sustainable ecosystem development. Exploring the socio-economic impacts of the digital divide, despite network expansion, and identifying effective strategies to ensure inclusive digital access for all Brazilians also remains a critical area for future study. Finally, continuous monitoring of the regulatory environment and its adaptation to rapid technological changes, such as the proliferation of AI and advanced IoT applications, will be essential for understanding the future trajectory of the Brazilian telecommunications industry.

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