Articles

The MVNO Business Takes Off in Brazil

Brazil is a country that is growing in wealth and in global presence. From 2000 to 2009, GDP grew by an average of 3.3% per annum when the equivalents for the US and UK were 1.8% and 1.7% respectively. According to the IMF, in 2001 Brazil was the world’s 11th largest economy by GDP but by 2010 had risen to 7th place in the list of global economies – above Italy, Canada and India.

In mobile telecommunications, Brazil is experiencing explosive growth in subscribers and in choice of services. Today, Brazil has over 200 million subscribers in a population of almost the same number meaning it has achieved over 100% penetration. By 2015, it is forecast that there will be between 10 million and 15 million MVNO subscribers – generating 5.6 billion USD per year – and addressing the specific needs of sub-segments within the Brazilian population.

In 2008, 1.2 billion USD of remittance outflows left Brazil to home locations of expatriates living in Brazil and these communities will be the targets of many MNOs from other countries setting up MVNOs in Brazil. Further, many MVNOs will be created to provide greater choice and service quality to the growing Brazilian middle class. Between 2008 and 2010, more than 23 million people rose into the middle class and their economic activity ballooned: 10 million people gained Internet access between 2005 and 2007, car sales soared 28% in 2008 and mortgage lending rose 26.5%.

These trends are good news for us at Jinny, as we have an established support and services presence in the Brazilian market and are experienced in providing complete, tailored solutions to MVNEs and to MVNOs. Our success with Aspider solutions in Europe and success with a number of mobile operators in Brazil give us the right back background to enable virtual network enablers planning to host multiple MVNOs and to provide an out-of-the-box solution for MVNOs planning a rapid launch.

The virtual network operators are exploiting several key trends in mobile telecommunications, including personalisation, brand identity and discount tariff plans. I predict that the virtual network operators will be capturing more and more market share in Brazil in the near future, and that Jinny will be the perfect partner for helping them launch.

Author: Cathal O’Toole, Jinny Senior Product Manager