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Small Providers – PPPs already own 20% of the market

PPPs já detêm 20% do mercado
PPPs already hold 20% of the market

The National Telecommunications Agency (Anatel) held this Friday, September 28, the event “Connect Brazil”, at the headquarters of the agency in Brasilia. The seminar focused on Small Providers (PPPs), which are companies that have up to 5% of total fixed broadband service users. According to Agency data, PPPs already hold 20% of the fixed broadband service market. The Agency has recently prepared the internal rules of the Committee of Small Providers, which has already been published in the Official Gazette.

The president of Anatel, Juarez Quadros, spoke during the opening of the Seminar, about the importance of PPPs. Quadros said PPPs are providing competition by taking broadband to areas far from major centers. He also stated that these companies, together, already surpass the 3rd place company in the ranking of the largest fixed broadband providers in the country.

Anatel’s vice president, Aníbal Diniz, pointed out that PPPs have shown exceptional growth. “These companies have filled the gap, reaching the far corners, bringing broadband to those who need it most,” he said.

Agency advisor Leonardo de Morais, also during the opening of the meeting, spoke about the importance of infrastructure. He highlighted the strong growth of PPPs, “which in March 2017 already had a 9% market share, as of June 2018 it was 20%. There was a growth of 907%, three times more than the average growth of the sector as a whole ”.

Anatel’s board member, Emmanoel Campelo, who was appointed the new chairman of the Small Service Providers Committee for telecommunications services, spoke about the need for greater incentive for PPPs. He said that the Agency has been seeking an approximation with the PPPs and for him, they deserve to have a voice within Anatel. Emanoel defended greater legal certainty for PPPs, in addition to reducing obligations, which may not be the same as those of large providers, and for that, a revision of the regulation is necessary.

The president of the Brazilian Association of Internet and Telecommunications Providers (Abrint), Basílio Peres, highlighted the divergence of data on the number of PPPs in Brazil and the need to obtain more accurate, real numbers. Among some reasons for the lack of information he cited the fear of oversight and the lack of regulatory obligations.

NeoTV Association general director Alex Juscius pointed out that in 2,603 ??municipalities PPPs have more than 50% of the sector’s market, especially in small municipalities, places with less economic viability by large companies. The association brings together pay-TV operators, internet providers, as well as equipment manufacturers and distributors.

The theme of the panel “Contribution of the satellite to service providers and consumers” was the growth of the satellite sector, in total there are 17 Brazilian satellites in operation, 37 authorized foreign satellites and 4 non-geostationary satellites also authorized. The goal is that by 2021 there will be 20 Brazilian satellites in orbit. The expected capacity growth is 110%, due to the entry of the KA band.

The advantages of satellite are its wide coverage, rapid deployment, ease of relocation, bandwidth hiring and business partnerships. On the other hand, cost is a problem due to the absence of a national manufacturer, which makes the satellite expensive. If there were national production, the satellite would be cheaper.

Opening the second part of the event, Aníbal Diniz pointed out that there are still major challenges in providing telecommunications infrastructure in the country. He also recalled recent measures approved by Anatel (General Plan of Competition Goals and Network Structural Plan) that may be beneficial to the sector and highlighted its growth, currently registering 6,000 small fixed broadband providers.

Source: Anatel

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