Promising sector: Telecom and E-commerce in Brazil

Promising sector: Telecom and E-commerce in Brazil

Brazil represents the largest e-commerce market in Latin America. Brazil’s online population, 78 million, is larger than the total population of Spain, France or United Kingdom. E-commerce has been rising in Brazil with an average growth of 32,5% in the last two years and expected 26% growth in 2012. However, the use of mobile phones to access the web is still in its very early stage: online traffic generated from mobiles and tablets represent only 1.5% of all web traffic in the country.

Today, Brazilians are still using their phones only to talk and to send texts. The expectation is that in a near future Brazilians will use their phones to surf the web and shop as well. According to Brazil’s Telecommunication National Agency (Anatel), there are 116 cell phones for every 100 people in Brazil. However, smartphones are still underutilized in Brazil. The proportion of purchases made from mobiles phone is strikingly small, below 1% of total online sales. Following the global trend, mobile-commerce is expected to rise steeply in Brazil. By 2015, at least half of Brazil’s population, or 100 million people, will have a mobile phone with Internet access.
Mobile phones are definitively changing consumer behaviour in Brazil. Youngsters aged 12 to 17 sent 60 text messages on a typical day in 2011, according to a study. In Europe, 55% of mobile users access the Internet via mobile devices.

In 2011, Brazil was the world’s third-largest market for PCs and the world’s fifth-largest market for mobile phones. The country is building fiber-optic links that will cover half of Brazil’s population. In July 2012 Brazilian government (Anatel) will launch a tender for – radio spectrum – bands required to deploy 4G mobile phones. Besides increasing broadband Internet access, the Brazilian government also needs to fight against monopolies in the telecom industry. From the entire area of the country that is covered with mobile Internet, only 12,6% of the municipalities have two or more competing market operators. The Brazilian government is taking actions to avoid monopoly. In Brazil by 2014 there will be four times more people connecting to the internet via mobile devices than via desktop PCs.

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Credits: General Consulate of São Paulo


Federico Morato
Federico Morato

Management Engineer and Business Consultant with a passion for entrepreneurship, languages and Brazil. After two years in Brazil, he creates Your Portuguese Translation to respond to the growing demand for an agency specializing in Brazilian Portuguese translation. "Nordestino de coração", he speaks four languages and loves the rhythms axé of Chiclete and forró of Aviões.

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