The Telecoms market in Brazil is heading towards consolidation. America Movil, Oi and Telefonica have joined forces to bid for TIM, the Brazilian unit of Telecom Italia. The plan is to split the proceeds between them.
Other changes are in the offing too. Coming into effect in November, Brazilian Telecom companies will be required to deliver 80% of the “average speed” contract by customers. Anatel, Brazilian National Telecommunications Agency, introduced as set of regulation back in 2012 to stop companies from reducing indiscriminately customers’ bandwidth. It is claimed that prior some companies were only receiving 10% of the bandwidth that had been contracted for.
Originally, the bottom limit was set at 60% but has since been pushed up to 80%. Probably the most interesting thing is the system that has been in put in place to verify compliance with the regulations.
- Over the last few years, Anatel has been using a system of quality control of broadband speed, carried out min partnership with PwC and SamKnows, whereby devices connected to the modems of about 10,000 voluntary users perform random speed checks.
- Anatel reports suggest that ever since these checks were introduced, speed delivery goals have been met in a lot more consistent manner.
These new regulations come into effect just as mobile operators in the country are planning to end the practice of throttling customers who go over their monthly quota and start charging them for the excess traffic.
- Currently, mobile data connections in Brazil are slowed down when usage exceeds data allowances. But service providers in Brazil are now deciding that ending the limited data connection speeds makes the most sense.
- The largest telco in Brazil, Telefónica Vivo, will be the first to implement the changes in its pre-paid offering and has plans to migrate its contract customers to the same model soon after.
- Other telco giants in Brazil such as Oi and TIM have said they are considering the end of mobile web speed throttling and the introduction of overage fees and extra data plans, but have not announced specific plans to do so.
Anatel is looking into the matter, but they have confirmed that the changes are within the sector rules. Customers I imagine would not be too happy with this move.