Market Trend

Brazilian government aims to increase broadband penetration

The Brazilian government’s $7.3 billion national broadband plan aims to connect 40 million households to broadband by 2014, an increase from 11 million households in 2010.

According to a report by Pyramid Research, the country’s broadband penetration is behind most economies in Latin America. The government’s plan aims to bridge the gap by making broadband access available in rural areas for lower income families, in addition to government and business institutions. As part of the project, $1.8 billion of the total invested will be used to build a 31,000km fibre backhaul network to connect 26 out of 27 Brazilian states by 2014, building upon 11,000km of state-owned capacity already in place in 15 states.

Pyramid considers the government’s aim of 40 million households connected as unrealistic, and anticipates that 27 million is a more credible target to aim for.

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