Brazil Telecom Market Presentation
Huawei do Brazil Enrich Life Through Communication Brazil Telecom Macro Environment Huawei Global and in Brazil Brazil Telecom Macro Environment Huawei Global and in Brazil
www.huawei.com Enrich Life Through Communication CPQD tablished in 1997 to support tablished in 1997 to support Anatel Fixed Operator Responsible for macro telecom policy , MOC Radio t the specific policy , Mobile Operator Broadcast The independent organization es Provide the consultant service for Ministry of Communication and CPQD: Anatel: Telecom Industry Structure Telecom Industry Structure Anatel such as telecom law, the new license privatization and implemen Ministry of Communication (MOC):
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Enrich Life Through Communication ital TV (03) g -Mass communication means (05-06) -Di -Communit Interministerial work Policies for the telecoms sector (03) Interministerial work groups: -Digital TV (03) Radio(04) -Community -Mass communication means (05-06) Reformulation of Computer (01) Law PC Connected (05) 2000 to Present
Copyright Law changed (98) C Band Satellite Norms and Norms and C Band Satellite DTH (91) (94) Cable Law MMDS Norm (94) New Computer law (91) (98) law Software changed Copyright law (98) Constitutional Amendment 8 Amendment Constitutional (95) (96) Minimum Law (97) General Telecoms Law 1970s / 1980s 1990s Market reserve (76) Increase market reserve (79) National Computer Policy (84) Copyright Law (73)
Reformulation of Manaus Free Zone – tax incentives for import / export (67) Brazilian Telecoms Code (62) Broadcasting Decree (67) Law 1960s The Brazilian Telecom Milestone The Brazilian Telecom Milestone Press Law (67) Press Law Pay TV Content Computers Telecommu nications Broadcasting
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Data Data
9
Mobile Mobile
9 9 9
LD LD
999 9
Local Local : Low : Low : Medium-High : Medium-High : Low-Medium : Low-Medium : High : High : High : High 9999 99 99 9 9 2004
Enrich Life Through Communication (per service) Major Players (Competition) Degree of CompetitionDegree of LocalLocal Fixed Fixedlineline LongLong Distance Distance BroadbandBroadband MobileMobile (Corporate) (Corporate) Data Data Vivo Telemar Telefonica Telecom Brasil Telmex/AMX TIM Embratel (Long Distance) (Long IV R Telemar III X I IX Mobile Fixed line R IV I & III & • 10 incumbents • Co’s 10 Mirror Telefonica •4 Mirror Co’s. • incumbents 4 Mirror •4 III III 1998 V R VI (Duopoly) VIII II VII R Brasil Brasil Telecom Up to 1998 (State Monopoly) • One Holding Company • companies 26 state (fixed/mobile) From State Monopoly to Privatization and Competition The History of Brazil Telecom Market The History of Brazil Telecom Market
www.huawei.com 22.8% 20% TIM Mobile Fixed line Fixed Mobile Users Market Share Enrich Life Through Communication Fixed Users Market Share 11.7 M 11.7 LinesService in million*) 39(Brazil: Share Market National Subscriber Base Base Subscriber million**) 58(Brazil: Share Market National 18.4M (TDMA/GSM) 7% 2.18% 21% 17.4% Claro 4.0 M 1.74M 12.0 M 12.0 17.4M Amercian Molive (TDMA/GSM) (TDMA/GSM) Opportunity & BRT TI Group 25% Mexico Carlos Group Region II Brasil Telecom Brasil Region IV 9.6 M Telemex Group Embratel (LD Carrier) Embratel Brazil – September/2004 36% 11.2% 10% 42% Oi Vivo 8.9M 5.7 M 5.7 28.8M 24.6 M 24.6 (GSM) (CDMA) 31% 39% Region III Brazil Telemar Group Telemar Telefonica Region I 12.2 M 15.2 M * Includes smaller incumbentsmirror and companies. ** Includes other groups Telefonica Group Major Telecom Players in in Players Telecom Major Telecom Competition Environment Telecom Competition Environment
www.huawei.com Embratel, Vivo, TIM and Embratel, Vivo, ports from companies, Low High Enrich Life Through Communication INFOCON SUCESU 2003 – (2005) High eLeste, Brasil Telecom, e future re financial (2004); highest share 25%) Cellular: (highest share 40%) Long distance: ( Local fixed line: (highest share 97%) Panorama of thePanorama competition 05 on Bureau (Dec 2002); Anatel (Dec 2002); on Bureau – to Presentation lecture – A leap new toward th market in a converging while environment, halfby of 2005 the followingTeleNort groups: Telesp, st 2003), Anatel2003), – Telecommunications ); Anatel – Presentation Universalizati of (R$ billions) Investment in Telecommunication Licenses Infrastructure maintaining investments and ensuring an adequate return? How do you consolidate a healthy competitive Telecom Industry Investment Telecom Industry Investment Regulation the of Telecommunication Market (Oct Telemig Celular. Celular. Telemig Source: Anatel – Exhibit Motives (1996 LGT’s of Accenture and analysis GT Note: (1) EstimateNote: (1) based on statements financial published the for 1
www.huawei.com Enrich Life Through Communication The Target Customer of the Operators The Target Customer of the Operators
www.huawei.com market Brazil and China Telecom develop very fast, and play an important role In global telecom market 35 30 25 20 15 10 5 0 % 50 45 40 35 30 25 20 15 10 5 0 %
Enrich Life Through Communication Interent Internet obile M obile M Fi xed ar ket 2001- 2005 ar ket 2001- 2005 Fi xed penet r at i on M M Internet Internet obile M obi l e M Brazil Telecom Brazil 2001 2002 2003 2004 2005 China Telecom China 2001 2002 2003 2004 2005 固定电话 Fi xed 0 9000 8000 7000 6000 5000 4000 3000 2000 1000 10K users10K 0 Telecom Comparison between China and Brazil 5000 45000 40000 35000 30000 25000 20000 15000 10000 10K users10K
www.huawei.com Enrich Life Through Communication Brazil Telecom Macro Environment Huawei Global and in Brazil Brazil Telecom Macro Environment Huawei Global and in Brazil
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Enrich Life Through Communication 48% ， Contract sales of 8.2 billion USD in 2005, 58% from international markets Products deployed in over 100 countries Serving 28 of the world’s top 50 operators. Strategic partner of British Telecom, etc. Vodafone, Telefonica, Over 35,000 staff members engaged in R&D Huawei at a Glance Huawei at a Glance z z z z z
www.huawei.com Brazil Venezuela Argentina Colombia Paraguay Peru Chile USA
Enrich Life Through Communication Ecuador Mexico Canada Australia Japan Philippines (Headquarters) South Korea Shenzhen Huawei Technologies em (HQ, regional, local) Vietnam Malaysia Indonesia Cambodia Singapore Thailand Bangladesh Nepal Kyrgyzstan Sri Lanka Kazakhstan Uzbekistan India Turkmenistan Pakistan Russia UAE Saudi Arabia Kenya Ukraine Turkey Bulgaria Sweden Poland Zimbabwe Egypt South Africa Greece Germany Italy Nigeria Netherlands Romania Algeria Tunisia UK Spain Morocco France 8 regional headquarters, over 85 branch offices outside China 3-level customer service syst Global Presence Global Presence Portugal z z
www.huawei.com Rio Brasilia Campinas Sao Paulo
Enrich Life Through Communication HUAWEI DO BRASIL Huawei in Huawei in Venezuela Argentina Huawei in Huawei in and has branch offices in 10 Countries; America America in Chile Huawei atin atin Peru Huawei in Huawei in n L n L i i Colombia Huawei in Huawei in Ecuador Huawei in Huawei in Mexico Huawei in Huawei in Huawei Huawei Huawei entered LA market since 1997, Regional Headquarter locates in Brazil;
z z www.huawei.com Enrich Life Through Communication Manufacturing Management Center Technical Support Center Training Center Spare Parts & Logistics Center 9 9 9 9 Huawei do Brasil Huawei do Brasil Founded in 1999, with offices RJ, SP,DF Investment accumulated up to 100M USD by the end of 2005 Campinas facility: 400 staffs by the end of 2005, 75% local employees z z z z
www.huawei.com Enrich Life Through Communication Localization Localization Local entities and investment Local staff Local partners Local logistics & support infrastructure Cross-cultural communication z z z z z Partnership Partnership Long-term partnership with customers Partner programs in logistics, engineering and support Strategic alliances with industry leaders z z z Innovation Innovation Huawei Strategy in Brazil Market Huawei Strategy in Brazil Market Brazil -- One of the Most Important Markets for Implementation Huawei Internationalization Strategy Next-Generation Next-Generation technology: UMTS/GSM, DSLAM, CDMA, NGN, IP NG-SDH services: More creative Voice, Data, Multimedia Full Customized solution: understanding of requirements from developing countries z z z z
www.huawei.com )
Enrich Life Through Communication labs with equipment labs sq. ft sq. ft (7 4500 17000 trainees at the same time classrooms 11 Covering Labs over 132 • • • • Training Center Facilities Training Center Brazil Training Center in Brazil Brazil Training Center 7 x 24 (365 days/year) Brazil Call Center Call Center Brazil 0800 883 0808 Successive Investment in Brazil Successive Investment in Brazil [email protected]
www.huawei.com Enrich Life Through Communication 310 200 increased 239% compared with 2003; 105 44 15 310M USD (forecast) 2002 2003 2004 2005 2006 0 50 MUS$ 350 300 250 200 150 100 Year 2004: sales mounted to105M USD, Year 2005: accomplished 200M USD; Year 2006: Huawei Achievements in Brazil Huawei Achievements in Brazil z z z
www.huawei.com A&S A&S Application
Enrich Life Through Communication n.a. n.a. n.a. n.a. n.a. Mobile Mobile n.a. n.a. n.a. Trial Fixed Fixed Data Data Opt. Opt. TIM GVT VIVO Claro CTBC Intelig Operator Operator Telemig Cooperation with Brazil Leading Operators Cooperation with Brazil Leading Operators Embratel Telefônica Telemar/Oi Brasil Telecom
www.huawei.com Enrich Life Through Communication tablish the first 3G trial office; Brazil, the bandwidth of which 50% in 2005(i.e. one of every 2 ), 1M subscribers are enjoying h can evolve to 3G smoothly. From 2004, Huawei DSLAM started ranking No.1 in Brazil; and 2004, From ADSL2+ has been widely applied in Cooperated with CTBC in Brazil to es Provided the total solution for CTBC, Telemig Telemar/OI, and z z z z can reach 12M, and it is the base of deploying IPTV service. including IP core network, whic then the market share expanded to users is using Huawei equipment Huawei Broadband Services accumulatively; 3G Pilot and Mobile IP Core Network New Technology Introduction to Brazil New Technology Introduction to Brazil Broadband development ¾ ¾
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Enrich Life Through Communication 05 fev- 100% ! 05 jan- ) ) 04 rd rd dez- May, 3 May, 3 04 – – nov- ar ar 04 out - 04 set - 04 ago- 04 jul- 04 j un- ai - 04 m 04 abr - Extracted from TelemarPresentation (Touching IntelligenceSemin Extracted from TelemarPresentation (Touching IntelligenceSemin 99. 99% 99. 98% 99. 97% 99. 96% 99. 95% 100. 00% Reliability Statistic after Deploying Huawei ASON Reliability Statistic after Deploying Huawei ASON
The reliability of Telemar’s of The reliability by customers most important using Huawei’s ASON Network is 100% guaranteed. www.huawei.com e
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-3
06 13
20
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20
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200
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200
06 -7 3- 2006-
06 -5 3- 2006-
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2006
-3
2006 -27
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2
-2
06 23
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6 9
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06 -17 2- 2006- -15 2-
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2006
New Subs/Day 13 2- -
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CRBT User Development Crazily
CRBT User Development Crazily -9
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06 7
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06 -1 2- 2006- Subs
Telemar/Oi
Telemar/Oi 06 -30 1- 2006-
0 28 1-
- 2006 80000 70000 60000 50000 40000 30000 20000 10000
www.huawei.com Enrich Life Through Communication ation between Brazil and China ation between Brazil ation between Brazil and China ation between Brazil ared with Brazilian operators; Experts from China will present advanced technology to Brazil, Chinese carriers already provided diversified services to local Most Brazilian operators are originated from Europe and Mexico ¾ more support to facilitate the application for Businesswho need Visa to Brazil; ¾ consumers, which can be sh ¾ with advanced industrial standard, therefore Chinese vendors can obtain the latest requirements accordingly. Experts Exchange Program Carrier Experience Sharing Enhancement of the Telecom Cooper Enhancement of the Telecom Cooper
www.huawei.com Enrich Life Through Communication ation between Brazil and China ation between Brazil Brazil telecom market competition is much higher than China, Brazil telecom market competition is much higher be can Chinese telecom market is expanding rapidly and ¾ and it will help Chinese operators to learn from it; ¾ beneficial for Brazil as well; Market Environment Since Brazil and China have similar telecom subscriber basis economic situation, the cooperation between Brazil and China will improve the two countries telecom development. Enhancementand China of the Telecom Cooperation between Brazil Enhancement of the Telecom Cooper
www.huawei.com Salvador ( ITU ) Rio
Enrich Life Through Communication Brasilia Florianopolis ) ( Futurecom Sao Paulo th to Nov. 29 rd The Latest and Advanced Technology Introduced to Brazil The Latest and Advanced Technology Introduced to Brazil Salvador (ITUT) Salvador Rio Florianopolis(Futurecom) Sao Paulo Brasilia More than 3,000 Engineers visited the Truck Road show From Oct. 3 Huawei Orient Express Fixed Network and 3G network Solutions Road Show held in Brazil. Road Show in Brazil ¾ ¾ ♫ ♫ ♫ ♫ ♫ ¾
www.huawei.com Enrich Life Through Communication Global and Local Seminar with Brazil Customer Global and Local Seminar with Brazil Customer
www.huawei.com Enrich Life Through Communication ommunication! ommunication! Communication and Cooperation Communication and Cooperation Both China and Brazil telecom industry would benefit from Good C Both China and Brazil telecom industry would benefit from Good C
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