Telecom in Brazil Current Behavior Changes Analysis¶
Ongoing Behavior Changes¶
Based on the analysis of the provided reports, several ongoing behavior changes are significantly impacting relationships and demand within the Brazilian telecommunications value chain in 2024 and early 2025. These changes reflect shifts in how individuals, businesses, and the government are utilizing connectivity and digital services.
A key change is the accelerating adoption of high-speed fixed broadband, overwhelmingly dominated by fiber optic technology. Residential customers are actively migrating from legacy technologies like DSL and coaxial cable to Fiber-to-the-Home (FTTH) due to the demand for faster speeds and greater reliability for activities such as streaming, online gaming, and supporting multiple connected devices within the home. [34], [36] This behavior indicates a prioritization of quality and speed over traditional, lower-bandwidth options. Similarly, businesses require robust, high-speed connectivity to facilitate cloud adoption, remote work capabilities, and digital operations.
In the mobile segment, there is a significant shift towards increased mobile data consumption and the rapid adoption of 5G technology. The total number of mobile accesses, particularly human lines, continues to grow, and crucially, 5G connections saw a substantial increase in 2024, reaching nearly 40 million accesses by December. [13], [19] This highlights a change in user behavior towards consuming more data-intensive content and services on mobile devices, driven by the availability of faster 5G networks and attractive data plans. [3]
The burgeoning growth of Machine-to-Machine (M2M) and Internet of Things (IoT) connections is a significant behavioral change within the business and public sectors. With 47.3 million M2M/IoT accesses by the end of 2024, businesses are clearly adopting connected solutions for operational efficiency, automation, and data-driven decision-making. [13] This reflects a behavioral shift towards digital transformation and leveraging connectivity for specific industry applications, moving beyond basic communication needs.
The continued decline in the use of fixed telephony is a persistent behavioral trend. Customers are increasingly abandoning traditional landlines in favor of mobile communication and VoIP services, leading to a significant drop in fixed telephony accesses in 2024. [4] This demonstrates a fundamental change in preferred voice communication methods.
These changes collectively point towards a customer base that is becoming more digitally dependent, demanding higher bandwidth, greater reliability, and specialized connectivity solutions. Price remains a factor, particularly in the competitive fixed broadband market, but the perceived value of high-speed and next-generation connectivity is clearly influencing adoption patterns.
Impact of Behavior Changes on the Value Chain¶
The observed shifts in customer behavior have significant implications for relationships and demand across the telecom value chain:
| Value Chain Layer | Impact of Behavior Changes on Demand and Relationships |
|---|---|
| Equipment & Software | Increased Demand for Advanced Equipment: Growing demand for fiber and 5G connectivity directly increases demand for associated network equipment (OLTs, routers, switches, 5G base stations) and related software (network management, BSS/OSS capable of handling new services/volumes). [9], [11] This strengthens the relationships between operators and global equipment/software vendors like Nokia, Ericsson, and Huawei. [20], [21] |
| Network | Accelerated Infrastructure Investment and Expansion: The push for fiber and 5G necessitates significant capital expenditure in network deployment and upgrades. [9], [11] This increases the demand for wholesale fiber infrastructure from neutral hosts like V.tal [6] and tower space from tower companies, strengthening these B2B relationships. It also drives network planning and optimization activities. |
| Connectivity | Shift in Service Mix and Increased Capacity Needs: Demand is shifting from legacy fixed services to fiber broadband and from older mobile generations to 5G. [13], [19] This increases demand for higher-capacity last-mile connections and more robust mobile data plans. It intensifies competition among connectivity providers (major operators and regional ISPs), influencing pricing and service bundling strategies. [17], [25] Growth in M2M/IoT creates demand for specialized connectivity solutions and platforms. |
| Navigation & Middleware | Increased Usage and Demand for Related Services: Higher internet speed and data consumption fuel greater use of search engines, browsers, and online payment systems. [1], [15] Increased online activity, coupled with growing concerns, drives demand for cybersecurity services. [50] This benefits major global tech companies and specialized security firms. |
| Application | Soaring Demand for Content and Services: The availability of faster, more reliable connectivity directly stimulates demand for data-intensive applications like video streaming, online gaming, and cloud services (OTTs). [47] The growth in M2M/IoT connections creates demand for specific industry applications and cloud platforms for data processing and analysis. This reinforces the leverage of Application layer players (OTTs) and exacerbates the "fair share" debate regarding their contribution to network costs. [38] |
| Customers | Evolving Expectations and Usage Patterns: Residential customers expect seamless, high-speed internet and robust mobile coverage. Businesses demand reliable, scalable, and potentially customized solutions for their digital needs. Government seeks connectivity for e-government and smart city initiatives. This increases customer reliance on telecom services but also raises expectations regarding quality, support, and value for money, influencing customer loyalty and churn. [29], [31] |
References¶
- CNN Brasil. Setor de telecom investe R$ 24,5 bi até setembro e espera fechar 2024 com R$ 35 bi | CNN Brasil. https://www.cnnbrasil.com.br/economia/setor-de-telecom-investe-r-245-bi-ate-setembro-e-espera-fechar-2024-com-r-35-bi/
- TELETIME News. Telefonia fixa perde 3,2 milhões de linhas em 2024, pior marca em cinco anos. https://www.teletime.com.br/06/02/2025/telefonia-fixa-perde-3-2-milhoes-de-linhas-em-2024-pior-marca-em-cinco-anos/
- IMARC Group. Brazil Telecom Market to Grow at a CAGR of 5.64% During 2024-2032 | IMARC Group. https://www.imarcresearch.com/brazil-telecom-market/requestsample
- Horizon Databook. Brazil Telecom Services Market Size & Outlook, 2025-2030. https://www.horizondatabook.com/report/brazil-telecom-services-market
- teleco.com.br. Telecom Leaders in Brazil in 2024 - teleco.com.br. https://www.teleco.com.br/lideres.asp
- BNamericas. Brazil kicks off 2025 with key telecom M&As in Minas Gerais - BNamericas. https://www.bnamericas.com/en/news/brazil-kicks-off-2025-with-key-telecom-mas-in-minas-gerais
- Data Center Dynamics. Aumento no número de linhas de celular marca o início de 2024 - Data Center Dynamics. https://www.datacenterdynamics.com.br/noticias/aumento-no-numero-de-linhas-de-celular-marca-o-inicio-de-2024
- Primeira Hora. Internet banda larga no Brasil: fibra óptica ultrapassa 40 milhões de acessos e lidera o mercado - Primeira Hora. https://primeirahora.com.br/internet-banda-larga-no-brasil-fibra-optica-ultrapassa-40-milhoes-de-acessos-e-lidera-o-mercado/
- TELETIME News. Mercado móvel cresce 7 milhões de acessos em 2024; IoT puxa alta - TELETIME News. https://www.teletime.com.br/04/02/2025/mercado-movel-cresce-7-milhoes-de-acessos-em-2024-iot-puxa-alta/
- TeleSíntese. Banda larga via fibra óptica supera 40 milhões de acessos no Brasil - TeleSíntese. https://www.telesintese.com.br/b
- Anatel: nove em cada dez brasileiros têm acesso à telefone celular - Agência Brasil - EBC. https://agenciabrasil.ebc.com.br/economia/noticia/2025-04/anatel-nove-em-cada-dez-brasileiros-tem-acesso-telefone-celular
- Setor de telecom investiu R$ 24,5 bi até o terceiro trimestre de 2024 - Conexis. https://conexis.org.br/setor-de-telecom-investiu-r-245-bi-ate-o-terceiro-trimestre-de-2024/
- Market share de banda larga fixa - teleco.com.br. https://www.teleco.com.br/blfixa.asp
- Brasil tem 341,7 milhões de assinaturas em serviços de telecom: queda de 1% no mês. https://mobiletime.com.br/noticias/01/08/2024/brasil-tem-3417-milhoes-de-assinaturas-em-servicos-de-telecom-queda-de-1-no-mes/
- Setor de telecom investiu menos 4,6% em 2024 | TI INSIDE Online. https://tiinside.com.br/06/01/2025/setor-de-telecom-investiu-menos-46-em-2024/
- Market Share das Operadoras de Celular no Brasil - teleco.com.br. https://www.teleco.com.br/shrmovel.asp
- O crescimento das MVNOs no Brasil em 2024 - Teleco. https://www.teleco.com.br/mvno.asp
- Operadores regionais dominam o mercado de banda larga em mais de cinco mil cidades brasileiras - TeleSíntese. https://www.telesintese.com.br/operadores-regionais-dominam-o-mercado-de-banda-larga-em-mais-de-cinco-mil-cidades-brasileiras/
- Brazilian telcos' love-hate relationship with 'pirate' OTTs - BNamericas. https://www.bnamericas.com/en/news/brazilian-telcos-love-hate-relationship-with-pirate-otts
- Top 10 risks for telecommunications in 2025 | EY - Global. https://www.ey.com/en_gl/tmt/top-10-risks-for-telecommunications-in-2025