Is Brazil ready for a mobile explosion?

My former roommate returned to the states after working in Asia with a start up company. As he told me about his job, travels and the ridiculousness of weeklong celebration of the Chinese New Year, he finally started to talk about moving to Brazil.

 Why Brazil?

According to my roommate and other credible sources (I had to do a fact check) that Brazil is ready for a mobile explosion. Brazil and other Latin American countries lack reliable Internet and smart phones that are prevalent in America. In 2010 only 8 million people in Brazil had access to mobile Internet in population of almost 200 million. That’s roughly 4% of the population have access to mobile Internet. In contrast, America in 2011, 70% or 82.2 million have a mobile Internet.

Why is there such a difference between Brazil and North America? We might think that phones and Internet service is expensive but in Latin America it is almost double of it cost in America. Brazil. The cost of having mobile Internet is luxury and in Brazil it has little reward because of slow download speeds, and limited access.    

That was 2010 but thanks to Moore’s Law the amount of mobile users increased from 8 million to 25 million in just one year. The article said in general, “increased purchasing power; improved telecommunications infrastructure and lower prices have helped Internet penetration grow quickly in Brazil”. This growth is expected to grow exponentially and is projected in 2016 (right before the Olympics) to have 96.2 million mobile users. 

This analysis of the exponential growth means a few things. More people in Brazil will access to reliable, faster Internet anywhere. The government is investing and buying licenses to have 4G networks through out Brazil. Marketers will be able to reach their target audiences with mobile advertisement. In a recent survey by Facebook, there are 1.6 new users per minute. This why companies such as Nike and L’Oreal beginning to invest in online advertising in Latin America. Also, are more users there are more revenues from mobile will increase. Finally, investors and code writers like my roommate are flocking to Brazil in hopes to cash in. 

http://www.forbes.com/fdc/welcome_mjx.shtml

http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1123792

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3 thoughts on “Is Brazil ready for a mobile explosion?

  1. This blog is one of my favorites for this week because it discusses a refreshing new topic while everyone else is still blogging about Netflix and Facebook. Additionally, you relate the topic of a potential mobile explosion in Brazil to Moore’s Law and how the prices of technology are getting so cheap that mobile users in Brazil are growing exponentially. Over the summer, we were required to read The Blue Sweater, which discussed the increase in technology and funding in impoverished areas, but mainly in Africa. I was very intrigued by this topic in the story, yet I never realized that there was a similar issue in Brazil other than in the impoverished favelas. However, according to your research and analysis, hopefully Brazil continues on their upward economic trend and becomes a targeted market by the 2016 Summer Olympics in Rio de Janeiro. My only suggestion would be to add more visuals or media to the blog, for example, maybe include the podcast or the chart that Cisco used in their article.

  2. This is an interesting focus for a blog. Brazil is a major emerging economy in our time and I am very interested to see where the future takes its economy and its internet infrastructure. I would have been interested to see more of an integration on Moore’s Law or more of a comparison to specifics from class. Nonetheless, Brazil is a very interesting economy and one that we should definitely keep an eye on.

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