Friday, October 26, 2012

To Expand Online, Brazil Goes Mobile





I was fascinated to discover that Brazil currently has more mobile internet users than fixed broadband users.  Brazil’s economic growth has translated into an improved telecommunications infrastructure which has aided internet penetration growth. In addition consumers purchasing power has grown, further enabling growth in internet and mobile technology usage.  I have experienced this first hand, as most of my family lives in Brazil.  I have witnessed the growth of mobile internet services, as providers are increasingly offering a variety of different price points thus making their services more accessible to a larger customer base, notably the rising lower middle class. Surprisingly though broadband in the home is still not widespread and is estimated to not even reach 50% of households by 2016.  As a result of the recent surge of internet users, internet capacity has been significantly strained as the telecommunication agency has reported that in 2011 actual fixed broadband speeds averaged 10% of contracted terms.  I think it is crucial for the government to push for the expansion of broadband as it provides new opportunities and growth for all social classes; however they must also focus largely on data speeds and fulfill their contracted terms. They have set a strict timeline of 2 years to up their average speed to 60% of the terms.  This is especially important as this infrastructure will be tested with the two upcoming renown events taking place in Brazil, namely 2014 World Cup and the 2016 Summer Olympics.  While this improves, mobile internet is dominating with the below expected penetration figures:
 


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