14 March 2018
| James Pearce
Telefónica Brasil has unveiled plans to spend £5.2 billion in capital expenditure over the next three years as it looks to boost fibre penetration in the country.
Executives from the Brazilian operator outlined an
aggressive organic expansion plan to analysts and media at a
presentation in New York, according to Reuters, with a
strong focus on growing broadband services.
The 24 billion reais investment plan will include more than
10% spend (2.5 billion reais) to specifically expand broadband
services in a market where mobile and paid TV growth is
"Fibre is something we are doing very aggressively in Spain
and here in Brazil. The demand for ultra broadband is huge,"
Telefonica Brasil CEO Eduardo Navarro said according to
"We have great advantages when you take our experience from
Spain. Spain has the highest fibre penetration in the West, and
we want to replicate that in Brazil."
Brazil is the region’s largest economy but
already has high levels of SIM penetration (119% according to
the GSMA). it has one of the largest broadband markets in Latin
America, though broadband penetration is only slightly above
the Latin American average, trailing behind neighbouring Chile,
Argentina, and Uruguay.
Telefonica’s announcement comes as TIM Brazil
said it will keep 12 billion reais capex which will be focussed
on broadband expansion. The Capex plans will improve in the
Capex-sales ratio to < 20 percent by 2019 in the domestic
business and to around 20 percent in Brazil by 2020, according
to an announcement made last week.