Emerging Markets

Digital Inclusion: The Brazilian experience

Emerging Markets

Priscila Grison

WHATIS THE CORRECT

SIDE?

About BrazilInternet in BrazilTelecoms in Brazil Digital Inclusion

About Brazil5th biggest country6th largest economyPopulation: 191,790,0005,564 townsGDP:1,3 trillion

Source: IBGE

10% earn 18X more than 40% poorest

Demographics

Telecommunications 200810 years of privatizationThe only sector that has no bottlenecks to economic development in Brazil.

0

102030405060708090

100110120130

1998 2000 2002 2004 2006 1T2008

Fixed lines

Mobiles

Cable TV

Broadband

Regulatory scenario changing

Telecom Market

Gross Revenue: R$ 158,4 billions in 2007

6,2% of GDP

42,4% of Net Revenue are taxes

Brazil has the most expensive rates in Latin America.

Amount of time spent on the web Brazil

France

USA

Japan

Australia

UK

Spain

Switzerland

Italy

22,5

20,1

19,3

19,1

18,2

16,4

15,5

15,2

14,4

It’s not numbers…

It’s a cultural change

Biggest community on Orkut28 million users

Very active internet users

13,9 million active usersMore than 40.000 twitters

52% read blogs daily 50% have already created a Blog75,7% belong to a social network

ConstraintsBroadband

access:8,3 million1/3 towns

Only 22,9 million have internet access at home.

135 million mobiles in use

2,8% use mobile web.

Is it a lot?

More than 3 million mobile web users. Considering instant messaging and mail, it goes to 7,3%

Technologies

GSM 115.486.494CDMA 15.660.581 TDMA, 2.858.369 WCDMA 775.938 CDMA 2000, 539.184

AMPS

TDMA

CDMA

WCDMA

GSM

CDMA2000

Still 10.414 analog mobiles

Pre-paid

Pos paid

Pre-paid devices are popular.

ARPU: 20 Reais per month

81,03

18,97

Personal device.

It’s my identity.

It’s a social symbol.

Features most common

100%

68%

35%

33%

29%

15%

SMS

internet

Java

Bluetooth

Camera

MP3 Player

30,5

25,36

24,92

15,483,7

Vivo

Tim

Claro

Oi

BrT

Brazilian market share

Uses for digital inclusion

Canal Motoboy

What more is needed?Clarity from regulatory bodiesBusiness models and pricing Education and awareness

Conclusions

Thank you!!!

priscilagrison@gmail.com