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Brazilian data revenues increase, still behind global average

WASHINGTON-Data service revenues reached 3.6 percent of net revenues in Brazil in the first quarter of 2004, up from 1.5 percent in the fourth quarter of 2003. But substantial growth is still likely, both Brazil-wide and within specific regions, a new study found.

Increasing interoperability, the rapid growth of GSM/GPRS networks, and the availability of data-enabled handsets in Brazil are all contributing to an acceleration of data revenues, according to Itelogy Partners, the Brazilian affiliate of U.S.-based ForceNine Consulting.

Itelogy projects data revenues to reach approximately 5 percent by year-end and 14 percent by year-end 2008 in Brazil. However, Brazil’s data market is still behind the international average of 10 percent. According to estimates, European services revenues will increase from 16 percent of net revenues to more than 50 percent by year-end 2010.

Regional differences are significant in the Brazilian mobile data market. Operators in some southern states have reached data revenues equivalent to 7.5 percent of total net revenues. However, in some northern states, this percentage is as low as 1.5 percent, the study found.

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