@ LTE LatAm: Brazil operators should learn from past World Cup and Olympic host-countries, industry leaders say

RIO DE JANEIRO – Brazilian operators must learn how other countries prepared their networks for traffic spikes during major global sporting events, in order to fully capture the payoff in revenue and marketing that followed, say industry leaders at the second day of Informa’s LTE Latin America conference in Rio de Janeiro, Brazil.
Within the last few months, a team of representatives from Brazil’s operators has come together to plan and carry out an investment strategy between now and the 2014 World Cup. The operators’ efforts should elevate the quality standard for service, and repair the image of Brazil’s telecom sector for both Brazilians and foreigners alike, said Francisco Carlos Monteiro Filho, spokesman for Abrafix/Telebrasil. The three-year investment effort should top $45.5 billion all together, with $11.4 billion committed so far this year.
Brazil is one of the world’s largest telecom markets already, ranking No. 4 in the world for telecom consumption in 2010, according to Monteiro Filho. The country also accounts for about 59% of broadband in Latin America, and ranks No. 8 in the world for broadband.
But Brazil must try and avoid the pitfalls of poor or late planning that industry leaders say they’ve seen in other countries that have hosted major sporting events in the past decade. Ericsson created a global group of industry veterans in 2000 to help operators in choice countries prepare successfully before major sporting events would be held there.
During the last World Cup in South Africa, 20 million SMS messenges were sent, and 1 terabyte of data traffic was used during the month-long event, equivalent to 300 hours of DVD-quality video being sent, said Michel Castaldelli, customer unit principal for Ericsson in Brazil. The group can offer insight into statistical trends that will help Brazil better anticipate market demand, like the fact that data traffic has grown five-fold between the last two World Cup tournaments.
Research from a range of major sporting events tends to show a three-fold increase in voice traffic for the host country, and as much as 30-fold for SMS activity, said Marcelo Motta, CMO for Huawei in Brazil. The added challenge for Brazil will be the large number of foreign visitors who bring in advanced technology devices that may tax networks more than the devices that Brazilians carry.
It’ll also be important for Brazilian operators to learn the best way to package and market roaming services to foreign visitors. Mike Roberts, lead Americas analyst for Informa Telecoms & Media, implored Brazilian operators to think twice before trying to cash in on millions of tourists by charging exorbitant roaming rates.
“We can’t have rates that are too high and will scar the user with price shock,” he said. “In the interest of the industry globally, I’d ask you to pursue reasonable rates.”