Telecom in Brazil Current Demand Behavior Analysis¶
Demand Behavior¶
The demand behavior in the Brazilian telecommunications market is driven by a large and varied customer base, broadly segmented into individual consumers (Residential) and businesses (B2B), which also includes the government and public sector (B2G).
The number of individual and business consumers can be primarily assessed through the volume of mobile and fixed broadband accesses, as detailed in the "Connectivity Layer" of the value chain analysis.
For individual consumers (Residential), mobile lines and residential fixed broadband connections are key indicators. As of the end of 2024, Brazil had a substantial 216 million mobile lines specifically for human use. In the fixed broadband segment, there were 53.3 million accesses as of October 2024, with a slightly lower figure of 51.6 million in February 2025. The vast majority of these fixed broadband connections, 41.3 million in October 2024, were through fiber optic technology, indicating a strong adoption of high-speed internet among households. The widespread access to mobile phones, with nine out of ten Brazilians having access, further highlights the significant scale of the individual consumer base.
Business customers (B2B), including the government and public sector (B2G), utilize both mobile and fixed services, often with more complex and tailored solutions. A significant indicator of business demand is the growing number of Machine-to-Machine (M2M) and Internet of Things (IoT) connections, which reached 47.3 million by the end of 2024. These connections are largely driven by business and industrial applications, reflecting the increasing adoption of connected devices for operational efficiency and digital transformation. While a precise breakdown of fixed broadband and mobile human lines solely for business use is not explicitly provided as a distinct number, businesses represent a substantial portion of the overall fixed broadband and mobile postpaid segments, demanding reliable connectivity and specialized services like dedicated internet access, corporate networks, and cloud connectivity. Growth in B2B revenue reported by some operators also points to the importance and expansion of this customer category.
Evaluating the growth or decline in the number of customers reveals distinct trends across different service segments.
The overall telecommunications sector in Brazil, after experiencing a period of decline, initiated growth from September 2023 and finished December 2024 with a 4.9% growth. Projections for 2024 to 2032 indicate a projected growth rate (CAGR) of 5.64% for the Brazil telecom market, driven by factors such as the increasing adoption of remote work, attractive data plans, and the rising utilization of mobile devices and smartphones., The market size was estimated at USD 32.01 billion in 2024 and is expected to reach USD 34.11 billion in 2025.
In the mobile segment, the number of accesses has shown growth. The market saw an increase of 7 million accesses in 2024, largely driven by the rise in IoT connections. The adoption of 5G technology is a significant growth driver, with 5G connections reaching 39.9 million by December 2024 and adding almost 20 million accesses in 2024.,, This indicates a strong migration of customers to newer, higher-speed mobile technology. Forecasts suggest continued growth in cellular subscriptions, including 5G, until 2027.
The fixed broadband segment has also experienced significant growth, primarily fueled by the expansion of fiber optic networks. Total fixed broadband accesses reached 53.3 million in October 2024. Fiber optic broadband access has surpassed 40 million connections, becoming the leading technology in the market and dominating in terms of new connections., Regional providers have played a crucial role in this expansion, collectively holding a significant market share and dominating fiber optic subscriptions., While there was a slight decrease in total fixed broadband accesses reported in February 2025 (51.6 million), the overall trend over the past year has been one of growth, driven by fiber adoption.
Conversely, the fixed telephony segment has been in continuous decline. The total number of fixed telephony accesses was 23.8 million in June 2024. The market lost 3.2 million lines in 2024, marking a 12.7% drop, the most significant percentage decrease in five years. This decline is a long-standing trend as users migrate to mobile and internet-based communication methods.,
In summary, the Brazilian telecom market is characterized by a growing number of customers in the mobile and fixed broadband segments, with a strong uptake of 5G and fiber optic technologies for both individual and business use. The fixed telephony segment, however, is experiencing a continuous decline in its customer base. The overall market is projected to continue its growth trajectory in the coming years.,,,
Table Showing Growth/Decline in Customer Numbers¶
| Segment | Metric | Volume (Most Recent Data) | Date (Most Recent Data) | Trend (Growth/Decline) |
|---|---|---|---|---|
| Mobile (Human Lines) | Total Accesses | 216 million | End 2024 | Growth |
| Mobile (M2M/IoT) | Total Accesses | 47.3 million | End 2024 | Growth |
| Mobile (5G) | Total Accesses | 39.9 million | Dec 2024 | Strong Growth |
| Fixed Broadband | Total Accesses | 51.6 million | Feb 2025 | Growth (Overall) |
| Fixed Broadband Fiber | Total Accesses | 41.3 million | Oct 2024 | Strong Growth |
| Fixed Telephony | Total Accesses | 23.8 million | Jun 2024 | Decline |
| Overall Telecom Sector | Revenue Growth (Year-on-Year) | 4.9% | Dec 2024 | Growth |
Note: Growth/Decline trends are based on comparing the most recent data with previous periods as described in the source material.
References¶
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