The number of broadband access lines in Brazil could more than triple by 2020, and users could see significantly higher speeds if investments of R$ 144.6 billion by 2020 (US$ 90 billion) were made, according to the National Union of Telephone Companies and Mobile Service (SindiTelebrasil).
The research, done by LCA Consulting, said the 40.9 million connections today could reach 78 million in 2014, and 153.6 million in 2020, driven by natural growth. However, if no action to encourage public or private investment, the expansion would be limited to 57.3 million connections in 2014 and 93.2 million in 2020.
Today, the average speed of broadband access in Brazil is 1.7 megabits per second (Mbps) and most of the hits are concentrated in the range of up to 2 Mbps. SindiTelebrasil believes that with additional investment, 87.2% of broadband connections would pass 12 Mbps in 2020.
Penetration could also grow. Today, broadband penetration is 21.5%, and could reach up to 74.2% of the population by 2020, driving Brazil to have an access profile similar to Asian and European countries.
To stimulate the expansion of infrastructure, the SindiTelebrasil study said that it’s necessary to have immediate availability of spectrum, suggesting the 700 MHz and 2.5 GHz, bands, along with approval of PLC 166, which proposes new rules for the cable TV sector, which was approved last week. The study points out the need to stimulate selling bundled services, which give end users cheaper bills, and asks for regulatory flexibility as well.
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