Brazilian VAS revenues worth nearly one-fifth of cellcos’ net sales, study says

30 Jun 2011

A study commissioned by Acision says that revenues derived from value added services (VAS) in Brazil now account for 18% of total net sales of BRL2.14 billion (USD1.37 billion) in the first quarter of the year. According to the study VAS revenues increased by 31% in the first quarter, following a general market trend of rising data sales as voice service revenues decline. TeleGeography’s GlobalComms Database notes that demand for VAS is being driven by the increased penetration of 3G in the country and the wider availability of smartphones. National telecoms regulator Anatel says the country was home to 26.3 million 3G mobile devices (including modems) at the end of May, up 73% on the same time a year earlier. Of the total, some 19.8 million 3G devices were W-CDMA handsets, while the remaining 6.5 million were 3G modems. By the start of this month, 3G devices accounted for more than 12% of total mobile connections in the country, it added. 3G networks currently provide coverage in 1,523 cities and municipalities across the country, representing 75.4% of the population.