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Summary

At this year’s Futurecom, telecoms operators once again complained about OTT providers and warned about the risks to the long-term health of the telecoms sector. Ovum believes that Brazilian telcos should focus on providing the market with their vision for the future and show the way forward – not get weighed down by a negative mentality.

Brazilian operators need to stop complaining and build a positive agenda

Futurecom is the largest ICT event in Latin America, and around 15,000 people gathered in Sao Paulo for its 17th edition. The event is traditionally used by operators, policy makers, and the wider industry to address the main challenges in the telecoms sector. But this year’s key messages sounded too much like last year’s: Once again, operators took to the stage to highlight the need for consolidation in a market that has seen a slowdown in growth rates, denounce the “heavy” regulation imposed on them compared to the “light touch” regulation on OTT providers, and call for a renewed concession framework for fixed telecoms.

The apparent lack of progress on these fronts shows worrying signals of an industry losing vitality and in need of reinventing itself. The telecoms sector in Brazil needs to build a positive agenda that convinces investors that it is still attractive. Futurecom brought many examples of the way forward. For instance, in its Smart Cities demo, PromonLogicalis integrated sensors from local start-ups with big names such as Intel. TIM Brazil, meanwhile, demoed LTE carrier aggregation. Also the Vivo Easy app was unveiled for customer self-care and self-service. The conference showed that operators need to focus on new services, partnerships, better mobile broadband, and better customer experience.

All in all, the conference highlighted how the sector has been weighed down by the same issues for way too long. Operators need to take lessons from what was on display and move on to build the sector’s future.

Appendix

Further reading

Brazil Update, June 2015, TE0001-000972 (August 2015)

“What’s next for AT&T in Latin America?” TE0001-000981 (August 2015)

Author

Ari Lopes, Principal Analyst, Latin America

ari.lopes@ovum.com

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