Brazil telcos’ 2011 CAPEX topped USD11bn, report says

16 Apr 2012

Brazil’s telecom service providers collectively invested BRL21.7 billion (USD11 billion) in 2011 to expand their networks, boost coverage and increase service quality, BNamericas reports without citing its source. The nation’s fixed, mobile, broadband and pay-TV operators all got in on the act, and many are upping their investments for 2012, TeleGeography’s GlobalComms Database confirms. TIM Brasil, for example, ploughed BRL2.9 billion into its networks and services in FY2011, in the process doubling 2G capacity and extending its 3G footprint to almost 500 municipalities. It now plans to invest BRL3 billion in 2012, with a primary focus on improving its 2G, 3G and fibre-optic capacity. Not to be outdone Telecom America (Claro), a unit of Mexico’s America Movil (AM), is spending BRL3.5 billion in its networks in 2012, with a primary focus on enhancing and expanding its HSPA+ coverage. Meanwhile, Brazilian broadband and telephony provider Global Village Telecom (GVT), owned by French media and telecoms conglomerate Vivendi, spent BRL1.8 billion in Brazil last year, up 44.2% y-o-y, to expanded its coverage to 22 additional cities during 2011; it now operates in 119 cities. Algar Telecom too, invested a total of BRL371.9 million in its networks and services in FY2011 – up 57% year-on-year – of which 39% was funnelled into voice and data, and 12% was set aside to help expand its retail footprint in 19 new regions following its successful acquisition of 3G mobile (Band H) spectrum for these areas. Finally, in February this year shareholders in Telemar Participacoes, which markets Oi-branded services in the country through Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste, agreed a plan to simplify the firm’s organisational structure, allowing its management to resume networks investments and set up a new dividend policy.