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Friday, January 19, 2007 

Brazil’s Mobile Market Growth Slows

Brazil’s mobile market is stuck although mobile penetration stands at just 53.2 percent (penetration in neighboring Argentina and Chile has surpassed 70 percent). This post reports the growth rate for Brazil’s mobile market is forecast to be only 10 percent in 2007, down from 15.9 percent in 2006 and a whopping 31.4 percent in 2005. So how did the market sink so low? Analysts reckon the main reason is the recent decision by operators there to stop subsidizing handsets, a move that makes mobile phones a luxury for much of the population. Mobile operators are focusing on post-paid users to boost ARPU.

An interesting point about the brazilian market: Even with all this dificulties, Brazil has reached almost 100 milions subscribers. 80% are pre-paid users.

Pedro "K2" Macêdo

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