Pay-TV is key concern for growing Brazilian telecoms sector | Major Businesses | Business
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Brazil’s telecoms market is expected to grow by almost 20% through to 2022, says Frost & Sullivan, with pay-TV becoming the key concern for the industry.

mando tv 16 june 2017The firm’s recent analysis has revealed that economic uncertainty, tax burden, shortening technology cycles, reduced profitability and disruptive competition are multiple factors holding back growth in the Brazilian market.

Despite a general drop in traditional revenues, the report points out that opportunities are to be found in non-traditional services, such as big data analytics and the Internet of things (IoT).

That said, Frost & Sullivan forecasts the total revenue of the telecoms market in Brazil will reach $45.76 billion by 2022, up from $38 billion in 2016.

In pay-TV, where the pay-back period is long, direct-to-home (DTH) operators became stricter with credit analysis for new adds, and in parallel faced disconnections from families cutting domestic household spending due to economic distress, thus reducing the customer base significantly as well as the revenue,” said Carina Gonçalves, digital transformation industry analyst at Frost & Sullivan.

In fact, the report places pay-TV, along with disruptive competition and data communications, as the key concern for telcos, while over-the-top (OTT) providers are considered to be the largest threat.

Over the last two-and-half years, Brazil’s pay-TV has seen a continued decline in subscribers and revenues, with top telcos – AT&T, América Móvil and Telefónica – absorbing most of the impact.