Download - Brazilian Broadband Study by Acision

© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: FINAL © 2011 Acision BV. All rights reserved

Mobile Broadband, Quality of Life & Marketplace Virtualization

Rafael Steinhauser President Acision Latin America

DLD – Rio de Janiero, April 26th, 2011

Version No: 1.0 / Status: FINAL

Broadband as economic growth engine

Brazil GDP per capita, 2011 = U$5,300Broadband penetration: 20% (38,5M of users (14M fixed + 24M Mobile)Broadband connections growth 2011= 51,5% – Mobile broadband growth 77,7%


For every 10% increase in broadband penetration, it is estimated that GDP might grow by ~1.4 pp

Source: World Bank


Broadband significance in today’s life...

Source: World Bank


First step: address Universalization…

Public- Private partnerships

Low interest loans for investment in network rollout

Incentives for network sharing practices (aiming at lowering costs of broadband network deployment)

Special broadband usage awareness & education programs

Subsidized services for poor citizens

Tax incentives in computer sales

Bundling and spectrum usage regulation ease

Government and public info online + creation of e-government and other e-applications (such as for health, education, and agriculture)

Examples of Public Policies to Stimulate Broadband Universal Access

Source: World Bank


Nowadays

Mobile Communications significance…

30 years ago 15 years ago

Voice +

Data Connectivity

Connectivity +

Virtual Marketplace

MobileTechnology

Services

CelcoBusiness

Analog Digital IP

Voice Voice + Data Voice + Data + BB

Voice Connectivity


…through so-called ‘Global Virtual Marketplaces’

Source: Telefonica

© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: FINAL

Seizing the opportunity in Mobile Broadband

© 2011 Acision BV. All rights reserved


The Mobile Internet Story So Far

HSDPAEDGEGPRSCSD HSDPA+ LTE LTE-A ?

2000 2004 2008 2010 2012 201620142002CUSTOMER PENETRATION

TR

AF

FIC

VO

LU

ME

Acquisition strategies• All you can eat• FUP• Fixed price• iPhone

Acquisition strategies• Capacity upgrades • Data caps• Tiering• Transaction pricing• Content mediation

Pricing is the trigger

Usability is the prerequisite

© 2010 Acision BV. All rights reserved Slide Number: 9


CSD GPRS EDGE HSDPA HSDPA+ LTE LTE+ ?

2000 2004 2008 2010 2012 201620142002CUSTOMER PENETRATION

TR

AF

FIC

VO

LU

ME

CU

ST

OM

ER

T S

AT

ISFA

CT

ION

Looking ahead on the curve

http://www.flags.net/BRAZ.htm


http://www.flags.net/UNKG.htm


http://www.flags.net/UNST.htm


48%

80% 83%

52%

20% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil US* UK

Mobile Only

Fixed & Mobile

Mobile-only internet very high in Brazil

Slide Number: 11

Mobile only access to internet is much higher in Brazil as an alternative for fixed access

Mobile broadband is therefore the only internet experience for many people and there is less fixed line comparison

Mobile only use and combined use

Source: Quantinet/YouGov/Acision, 2010



http://www.flags.net/UNST.htm


Enormous untapped potential in Brazil

Slide Number: 12

Perception of non-mobile internet consumers66% of consumers (44 million) with access do not use mobile internet

6.1 million (14%) consumers are considering the service now

7.3 million (16%) are simply unaware of the advantages or services Source: Sept 2010 Quantinet research commissioned by Acision N=1506

55%

31%

14% 13%11%

6% 5%

0%

10%

20%

30%

40%

50%

60%

Tooexpensive

No need Considering it Not reliable see noadvantages

not availabefor me

Don’t know services


Key takeaways from our research

Slide Number: 13

1. Major opportunities exist today with over 6 million consumers ready to start using mobile broadband now

2. Pricing is a probable inhibitor for growth and seen as a key dissatisfier for 55% of Brazilians

3. Relatively comparable satisfaction levels compared to the US and UK, but moving forward Brazilian operators should deploy key capabilities to manage QoE levels in an exponential growth situation