Streaming, the New Frontier in Gaming High-End Games Distributed Free of Charge, Games Made for Mobile Phones, and Countless Hours of Live Streaming

MARCH’ 20 ISSUE #4

Streaming, the new frontier in gaming High-end games distributed free of charge, games made for mobile phones, and countless hours of live streaming. It's a new gaming era, and Brazil's market still has a lot of room to growth EDITORIAL Latin Americans are crazy about

gaming LABS is a business news website about Latin America, focused on economics, business, technology and society. By providing deep In the 1990s, "playing video games" was a and accurate content about the much more defined and restricted activity: economic and technological landscape of Latin America, both it was enough to have a console, buy or rent I in Portuguese and English, we help tapes and play alone or with friends in the same readers understand the region’s room. Today, there are more ways to have fun particularities. and from them there are countless ways to make money.

In 2019, according to the game expert consul- MASTHEAD tancy company Newzoom, this market registered Thiago Romariz $148.8 billion in revenues, more than the movie Head of PR and Content at LABS [email protected] and music industry combined, and it should con-

tinue to grow according to projections. Fabiane Ziolla Menezes High-end games distributed free of charge, Editor-in-Chief of LABS games for mobile phones, countless hours of live [email protected] streaming of the moment’s hottest titles, and João Paulo Pimentel esports, competitions seen by millions of view- Editor at LABS ers and which distribute millionaire prizes, are [email protected] taking the gaming industry to another level. In Anna Lima Brazil, particularly, there is still a lot of room for Content Analyst at LABS growth. Discover how in the next pages! [email protected]

LABS TEAM Translation by Jennifer Ann Koppe Project Design Lead by Leticia Mulinari Cover Illustration by Felipe Mayerle

2 "All brands should focus on 04 streaming" IN AN INTERVIEW WITH LABS THE BRAZILIAN STREAMER AND PLAYER PATIFE TALKS ABOUT THE MAJOR CHANGES IN THE GAMING ECOSYSTEM

People don't play like they 08 used to: welcome to the new billion-dollar game era HOW FREE GAMES AND STREAMING SERVICES SPARKED A NEW VIDEO GAME BOOM

13 The gaming industry today AND ITS POTENTIAL IN BRAZIL

14 The Free Fire phenomenon HOW BRAZIL BECAME A KEY MARKET FOR GARENA, THE BRAND’S OWNER

17 LOUD rules THE COMPANY THAT DOMINATES THE MOBILE GAMING SCENE IN BRAZIL

21 Opinion LABS COLUMNIST THIAGO ROMARIZ EXPLAINS WHY THE FUTURE OF GAMING IS PORTABLE

24 The world's largest 5G auction NOKIA, ERICSSON AND HUAWEI KNOW THAT THE CONTRACTS THAT WILL COME THROUGH THE BRAZILIAN BID ARE A CRUCIAL STEP FOR THE TECHNOLOGY'S PROVISION IN THE ENTIRE LATIN AMERICA

28 Oi, Vivo, TIM and Claro HOW CARRIERS ARE PREPARING FOR THE ARRIVAL OF 5G IN BRAZIL

30 Culture on the spotlight TIPS ON LATIN AMERICA'S MUSIC, CINEMA, AND LITERATURE

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 3 INTERVIEW "All brands should focus on streaming because the effect is fast and really personalized" In an interview with LABS, Brazilian streamer and player Patife talks about the major changes in the gaming ecosystem and its next steps following the current mobile and free games fever

BY THIAGO ROMARIZ

etween the brands and the In this interview, he talks about the audience are the influencers. changes happening in the market, the B In the gaming and e-sports difference between Latin America and world, they are more than producers other countries, and what are the next or content distributors. They can steps for creators and brands interest- be the voice of a brand, the channel ed in investing in this business in the to get up close and personal to the following years. audience and sometimes the path to know what’s coming up next in the LABS You have changed a lot and have industry. also experimented many different The power influencers have comes things in your career as a creator. due to the time spent talking to follow- How did your relationship with the ers, experimenting formats, and discov- audience change and what was the ering trends that a huge company will major challenge you had to face? never be able to adapt in its magnitude. PATIFE Since my first video, I’ve noticed That’s why they are such a huge invest- that the relationship with the audience is ment and target for brands interested completely different when you do a live in reaching out to the huge audience of stream. This kind of content makes a lot games and e-sport fans. more sense because I’m in contact with On the other hand, audiences and followers in a more direct way and I have trends are so fast and volatile that feedback immediately. It also gives me sometimes not even the influencers more freedom to decide themes, because can keep up with so many changes. I usually don’t talk only about the game Symbol of the gaming community in itself. This diversity of followers and Brazil, Patife is in the business for themes that streaming allows, gave me almost a decade now and was part of the possibility to expand my own audi- the major changes that took place in ence – since there are a lot of people that the gaming ecosystem during the past don't like streaming, so for them it is hard years. He began his career as a stream- to watch games in real time. I believe that er, started to post VOD and now found my greatest challenge is to really please himself between formats and discover- these two kinds of audiences: the one ing the world of mobile games – while that lives for the stream and the other being the face of many international one that wants a VOD made specially for brands in Brazil. them. And they are equally big.

4 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING LABS A lot of platforms tried to LABS Monetization came as a bless- stick to the streaming business, but ing but started to become a curse as almost no one was successful – even the years went by. Challenges grew giants such as Facebook are strug- a lot and the ways to make money gling. What do you think happened through platforms changed a lot as to the market and what is key for a well. What do you think about the platform to thrive in the business? monetizing formats and the regula- PATIFE The user experience is key, tion being used nowadays, and how since that is what will keep peo- will it be possible to make money ple online and spending time on a from streaming in the future? platform. The platforms also must PATIFE Most Brazilians still think that ev- understand where the limit is when erything that is online is for free. So the it comes to content creation. There monetization that comes directly from are those who don't allow swearing the creator/streamer is relatively or any kind of bad language -- some- new for us. Fortunately, it times this could limit the creation or is growing fast, really fast, even the relationship with the audi- thanks to our audience ence. On one hand, it’s a good thing, who are really engaged in because it makes our segment a lot everything that we do and more professional; but someone could everything that we pro- say that this kind of freedom is key mote. A couple of weeks for a streamer to be on a platform. For ago, I did merchandising the audience, the most important is for a monitor and all that the platform is comfortable and of a sudden, someone fast to use. Improving chat and clips made up a story about tools is probably something that will the product and the ad make the difference in the mid term. became the theme of a stream without any kind of planning. It was a really “The relationship with the audience is completely different when you do a live stream. This kind of content makes a lot more sense because I’m in contact with followers in a more direct way and I have feedback immediately”

PATIFE, BRAZILIAN STREAMER AND PLAYER

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 5 good example of how live streaming can makes the content and the game is not be a great tool for creative advertising as important. The Brazilian audience and brand engagement. In my opinion, is more engaged for sure. At the same all brands should focus on streaming time, our relationship with money and because the results are fast and really monetizing inside of a stream is still in personalized. the beginning. Another big difference is the size of the niches. In the US, for LABS What are the main differences example, the audience devoted to RPG between the US and the Brazilian or fighting games is huge and loyal to markets when it comes to streaming that kind of content. You can be a really and gaming content? successful streamer inside those niches; PATIFE The difference is huge. Our audi- something that is almost impossible in ence is passionate and really dedicated Brazil, where you need to adapt to new to the creator. They really love who trends every other month.

LABS What about content creation? “The next big thing is mobile. What do you think will be the next hit? Mobile? MOBA? RPG? Another The audience, the games, and the Battle Royale? platforms are noticing this and I PATIFE The next big thing is mobile. The audience, the games, and the platforms think that Free Fire, for example, are noticing this and I think that Free is just the first step” Fire, for example, is just the first step. In my opinion, strategy games and triple PATIFE, BRAZILIAN STREAMER AAA mobile games will dominate the AND PLAYER market. At the same time, I think that there is a movement that will increase the interest in FPS on PC, adventure consoles and so on. Mobile and free games are the trend now, but the main thing about them is the potential that they have to boost the overall audiences of video games and live streams.

6 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING Photo: Shutterstock Photo:

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 7 NEW BUSINESS OPPORTUNITIES People don't play like they used to: welcome to the new billion-dollar game era

Trends such as live streaming, free mobile games and esports generate new business opportunities

BY RODRIGO GHEDIN

n August 2019, American streamer developer, Epic Games, into one of the Tyler "Ninja" Blevins announced that gravitational forces in the industry. Fortnite I he was leaving Twitch, Amazon's is free and can be played on powerful com- game streaming platform that catapulted puters, consoles and even cell phones. him to fame, to join Mixer, a rival service The importance given to Blevins’ trans- from Microsoft. fer, as if he were a worldwide famous soc- Blevins is the most famous streamer cer player, brings together several trends, in the world and made his name playing many of them already consolidated, that mainly Fortnite, a “battle royale” style have shaken the lucrative video game shooting game that already has 200 million market in recent years. In 2019, according registered players and has turned its to the game expert consultancy company

8 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING “We have been playing video games in Brazil since the 1970s. I think we are celebrating a moment that has been settling down for a long time”

ALESSANDRO SASSAROLI, MANAGER OF GAMING PARTNERSHIPS ON YOUTUBE

Newzoom, this market moved $ 148.8 billion, more than the movie and music industry combined, and it should continue to grow according to projections. High-end games distributed free of charge, games for mobile phones, countless hours of live streaming of the moment’s hottest

titles, and esports, competitions seen by YouTube/Courtesy Photo: millions of viewers and which distribute millionaire prizes. In the 1990s, "playing video games" The other streaming war was a much more defined and restrict- If for many people the concept of watched activity: it was enough to have a ing another person play for hours on end console, buy or rent tapes and play still sounds weird, for streamers, as these alone or with friends in the same new professionals are known, the game room. Today, there are more ways has long become a serious business – as to have fun and from them there are well as profitable. Blevins told CNN that countless ways to make money. To en- he made $ 10 million in 2018. To get him joy one of the biggest, live streaming, out of Twitch, industry sources estimate you don't even have to play: just open that Microsoft will pay him between $ one of the several sites that offer this 20 and $30 million a year. Few generate service and watch other people, more revenue at this level, but the number of skilled and/or charismatic, exploring streamers who dedicate themselves to virtual universes. this new market and actually paid (well The time comparison was made paid) for their work of entertaining virtu- by Alessandro Sassaroli, manager of al audiences with their skills and charis- gaming partnerships on YouTube for ma continues to grow. Latin America. "We have been playing The Chinese platform Nimo TV, in video games in Brazil since the 1970s. I Brazil since May 2019, searches for prom- think we are celebrating a moment that inent streamers and closes exclusive con- has been settling down for a long time," tracts for live broadcasts. Nimo's differ- says the executive. Used to leading the ential is to focus on mobile games. "[The markets where it operates, in live game Chinese head office] saw in Brazil a large streaming YouTube is the challenger. slice of the mobile games market that was The industry leader is Twitch, pur- not being absorbed by the other active chased in August 2014 by Amazon for platforms," explains Lin Chi, marketing $970 million. manager at Nimo TV Brasil. (The service also attends Mexico and Argentina).

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 9 even more distant, appeared Facebook Gaming (356 million hours) and Mixer, from Microsoft, with 354 million hours. Despite the smaller volume, the relative growth of these two was enormous: 210% and 149%, respectively. The "streaming war," which involves companies like Netflix, Disney, Amazon and Apple, wins most of the headlines and public attention, but there is another parallel battlefield almost as disputed as that of game streaming platforms. Sometimes they meet, like when Reed In 2019, YouTube was A common Nimo contract provides Hastings, CEO of Netflix, told share- the second streaming for a set number of hours transmitted holders that "we compete more (and platform in number of per week or month and participation in lose) with Fortnite than with HBO," but hours watched when events organized or supported by Nimo. overall, it is a war on its own. it comes to games There are individual streamers and The common strategy in series and and esports. Photo: professional teams, managed as compa- film platforms, to differentiate them- YouTube/Courtesy nies and with players dedicated entirely selves with exclusives, is repeated in to the trade. The service’s jewel in the games with a fundamental difference: crown is LOUD, created in 2019 and "titles" are scarce and it is more diffi- whose trajectory has been meteoric until cult to create successes from nothing. now. The fixed amounts paid by Nimo Therefore, the biggest ones, with deep are not revealed. pockets, promoted a festival of signings In addition to this source, streamers in 2019 worthy of the transfer windows at Nimo also receive virtual items from of European soccer, something that viewers that can be exchanged for real should continue for some time. money, which gives aspirants a chance The main target is leader Twitch, who to already earn without depending on in 2019 lost other big stars besides Ninja, the platform’s centralized, direct pay- all co-opted by rival platforms. YouTube, ment model. the biggest platform when considering Nimo is still fighting to face the "non-live" videos (VODs, in jargon), is big sharks in the area. The company trying an alternative, cumulative strate- doesn’t appear in the Stream Elements gy to secure the rights to entire champi- Consultancy survey, which monitors onships, one of Twitch's major sources the volume of hours watched on game of traffic. A few weeks ago, the Google streaming platforms. In 2019, Twitch led video platform announced the acquisi- the way with 9.3 billion hours watched tion of exclusive rights to broadcast the on its platform worldwide, a 20% growth championships of publisher Activision compared to 2018. YouTube was a distant Blizzard, highlighting the League of second place, with 2.7 billion hours, an Duty, a paid title that topped 10 of the 20 increase of 16%. Following YouTube, but best-selling games in the States United

10 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 160 minutes in the last decade, and the Overwatch and iOS versions. In 2019, the free game league, another blockbuster with more gathered the three largest live audienc- is the average time spent per session on Twitch in Brazil. than 50 million players [5]. Until then, es in the history of YouTube in Brazil, they were broadcast on Twitch. became Nimo’s flagship and won all 66% Despite that, Twitch is focused and the categories in which it was compet- of the Brazilian population plays calm. "Having competition is very ing in the eSports Brasil Award [6], an video games. Of these, 83% play healthy, because in the end the user initiative by Grupo Globo to encourage on cell phones. wins," defends Wladimir Winter, esports in the country, including the best $ 148.8 billion director of content and partnerships athlete of the year for Bruno "Nobru," was the global revenue of the for Twitch in Brazil. For him, despite a kind of Messi of games, holder of the game industry in 2019, according the advances of competing platforms, newly formed Free Fire Corinthians to Newzoo. Twitch remains at the forefront for the team – yes, the same name of the popu- $ 68.2 billion tools it offers, the close monitoring of lar soccer team from São Paulo. its streamers and the communities that It would not be an unprecedented was the mobile share of the game industry's global revenue in 2019. are created there. "I think it's the big path. In fact, collaborations between difference in relation to other players, the various players in the ecosystem are $5.5 billion the Twitch community is very engaged, common. Razer, an American company was the game industry’s revenue has a sense of community". expert in gamer hardware, has long been in Latin America in 2019, 8.9% With an eye on the frequent market betting on this: "We launched several larger than in 2018. twists, Winter adds that Twitch's next customized products with very success- move should be in the mobile market, tak- ful game themes, such as Overwatch, ing the opposite path from Nimo. "Twitch Gears 5 and Destiny 2," explains is very interested in the mobile audience," Vitor Martins, director of Razer Latin without revealing any more details. America. He does not reveal figures, but says that Brazil is responsible for 50% of Mixed trends the company's sales in Latin America. A shortcut that Twitch can take to speed Although born as an accessories up its entry into the mobile segment manufacturer, Razer well incorpo- is called Free Fire, the great success of rates the sector’s dynamic pace, which Garena, from Singapore, with Android requires adaptation and agility: the Photo: YouTube/Courtesy YouTube/Courtesy Photo:

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 11 A new era for e-sports The games sector grows year by year and is experiencing a new transformation with the “I think it is very powerful to think emergence of streaming and free games that a child who comes from a place with fewer resources, with Global Revenue of the Game Industry Mobile rules! (YoY, in USD billions) $189 The present and the future of games is mobile. a cell phone and a game, can get $173 From the total revenue of $161 billion of 2020: $160 wherever he or she wants to” and promoting companies in the games $148 $138 sector. Since 2012, when Riot brought to $122 ALESSANDRO SASSAROLI, MANAGER OF Brazil its League of Legends, the most $107 $161 billion GAMING PARTNERSHIPS ON YOUTUBE $93 popular MOBA (multiplayer online battle arena) in the world, Domingues saw company already has notebooks, cell the market mature and reach its current $48 billion $76.1 billion $36.4 billion console games mobile games PC games phones in its portfolio, announced in size: "About five years ago, esports had 2015 2016 2017 2018 2019 2020* 2021* 2022* January its first desktop computer and a boom out there. According to Newzoo, *Projection Source: Newzoo is not afraid to present super futuristic Brazil is the third largest audience of concept products, even if they never esports–behind the United States and reach the shelves. "We provide a com- China. I believe that the future [in the plete ecosystem of hardware, software country] is very good.” She believes that The game industry and services for gamers," continues in three years we will be a match for Gender Age years old Martins. "Our goal is to offer all the more mature markets. in Brazil tools that players need to reach maxi- "The companies that really invested 16 to 24 19% mum performance, comfort, immersion in Brazil are reaping what they sowed," A survey carried out in February 2019 25 to 34 37% and personalization of their gaming she says, citing Riot and Garena as among 3,251 respondents found out that 53% 66% the Brazilian population play video 47% experience." examples. For her, the numbers of men women 25 to 34 34% Like Twitch, Razer also launched the Brazilian market, with millions of game. Of this total, 83% do it on their +54 itself into the fierce cell phone market. gamers, a good part of them interested smartphone, and 45.3% actually prefere 7% After purchasing the startup Nextbit, in esports, can cloud the strategists' to use the smartphone for playing. in January 2017, the company put up for view. "These numbers impress the com- sale the Razer Phone, one of the pio- panies abroad, so they think the profit neers of the still incipient segment of will be immediate". gamer cell phones. It has all the eccen- Playing or watching, on expensive The most used devices The favorite devices Where they play tricities of computers, such as intimi- computers in crowded e-sport arenas Respondents could choose more than one This time, respondents could only choose one dating names and LED lights, as well or in the waiting room of the doc- as other more practical differentials, tor's office, for pure pleasure or with smartphone at home smartphone 45% 45% 90% such as turbocharged components millions of Reais at stake, the fact is and software optimizations that that there are already many gamers video game 26% allow you to run heavy titles more around the world – in Brazil, 66% of the 26% video game desktop 12% smoothly. population, according to the 2019 Game 12% desktop 5% during traffic laptop Esports are also experienc- Brasil Survey. "I think it is very pow- 9% 9% laptop ing a special moment in the erful to think that a child who comes tablet 2% 2% tablet 4% at work country, but there is still a from a place with fewer resources, with lot of room for growth. The a cell phone and a game, can get wher- diagnosis is from Fernanda ever he or she wants to," says Sassaroli, Domingues, CEO of FD from YouTube. "Games are very serious, Comunicação, a company very big, interesting. I wouldn’t want to Hardcore Gamers Casual Gamers specialized in advising be anywhere else". of the Brazilian players are of the Brazilian players are 32% are Hardcore Gamers 58% men 67% are Casual Gamers 74% women PC and videogame smartphones players players

up to BRL 100 per year on games prefer free games

Source: Pesquisa Game Brasil 2019 (PGB19), made by Sioux Group, Go Gamers, ESPM and Blend New Research. 12 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING A new era for e-sports The games sector grows year by year and is experiencing a new transformation with the emergence of streaming and free games

Global Revenue of the Game Industry Mobile rules! (YoY, in USD billions) $189 The present and the future of games is mobile. $173 From the total revenue of $161 billion of 2020: $160 $148 $138 $122 $107 $161 billion $93

$48 billion $76.1 billion $36.4 billion console games mobile games PC games 2015 2016 2017 2018 2019 2020* 2021* 2022*

*Projection Source: Newzoo

The game industry Gender Age years old in Brazil 16 to 24 19% A survey carried out in February 2019 among 3,251 respondents found out that 53% 25 to 34 37% 66% the Brazilian population play video 47% men women 25 to 34 34% game. Of this total, 83% do it on their +54 smartphone, and 45.3% actually prefere 7% to use the smartphone for playing.

The most used devices The favorite devices Where they play Respondents could choose more than one This time, respondents could only choose one

smartphone at home smartphone 45% 45% 90% video game 26% 26% video game desktop 12% 12% desktop 5% during traffic laptop 9% 9% laptop tablet 2% 2% tablet 4% at work

Hardcore Gamers Casual Gamers

of the Brazilian players are of the Brazilian players are 32% are Hardcore Gamers 58% men 67% are Casual Gamers 74% women PC and videogame smartphones players players

up to BRL 100 per year on games prefer free games

Source: Pesquisa Game Brasil 2019 (PGB19), made by Sioux Group, Go Gamers, ESPM and Blend New Research. 13 FREE FIRE The Free Fire phenomenon

Free Fire exploded in Brazil, and now the country is seen as a key market for Garena, the brand’s owner

BY RODRIGO GHEDIN n 2018, Free Fire was the most prof- Comunicação, a company specialized in itable app in Brazil, surpassing well- advising and promoting companies in the I known names like Tinder and Netflix. games sector, is that “the items [in Free The 2019 data has not yet been consolidat- Fire] are not so expensive. When the played by SensorTower, a consultancy compa- er is excited, he buys ”. Betting on volume, ny specialized in app stores, but it would Free Fire became a (prolific) goose that not be risky to bet on a double champi- laid the golden eggs. onship of the free game app from Garena. "We knew from our experience in (The recipe comes from selling optional Southeast Asia that players in markets virtual items.) After all, if in 2018 Free Fire where mobile devices are growing like advanced quietly until it reached the top, games that are lighter in data and pro- in 2019 it stole the show and dominated cessing power," explains Fernando Mazza, the Brazilian gaming scene. head of operations at Garena Brasil. In the Free Fire is a “battle royale” style shoot- third quarter of 2019, the average price ing game, in which dozens of players are of the smartphone sold in Brazil was R$ dropped on an island filled with weap- 1,165, according to IDC, a value far from ons and other items. The last survivor the R$ 5,000 that top-of-the-line devices, wins. The great thing, what sets it apart such as iPhone 11 and Galaxy S10, cost. from the many similar games available Free Fire had 450 million registered out there, is to be more accessible: while players worldwide in May 2019, the most the pioneers of the genre, Fortnite and current number that Garena reveals. PUBG, require advanced and expensive Mazza does not open other numbers, but cell phones to run, Free Fire works well gives clues that suggest the title’s vertig- on any intermediate device and does not inous growth and, at the same time, the consume lots of data when connecting to importance of Brazil for the developer in the internet. this context. In addition, playing Free Fire does This is the case with official compe- not cost anything. The recipe comes titions. In 2020, the Brazilian Free Fire from the sale of in-game cosmetic items, League (LVFF) will have three divisions released with high frequency, to keep and three stages throughout the year, with players interested. Another aspect, high- the participation of professional teams lights Fernanda Domingues, CEO of FD and hundreds of aspirants from all over the country. The A series matches, which are the main ones, will be in person, “It is a new game, in development, played in Studio 1, inside the Quanta Studios complex, in São Paulo (SP), a and democratic, because it is not only studio over 1,200 m2, where the match- due to the size of the public, but the type es will be transmitted live via YouTube. - all ages, from children to entire families” "It is a way to further engage our local

FERNANDO HAMUCHE, OF IGC

14 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING Photo: Free Fire/Courtesy Fire/Courtesy Free Photo:

community and bring relevant content to available on the market, the choice our audience," explains Mazza. by Free Fire to kick off Corinthians in In November, the Free Fire World e-sports was due to some factors besides Series (FFWS), one of the world tour- its popularity. "It is a new game, in de- naments Garena organizes, returns velopment, and democratic, because it is to Brazil. The first edition took place not only due to the size of the public, but in Rio de Janeiro, and someone who the type – all ages, from children to entire was distracted might even think it was families," explains Hamuche. "Garena has something else, since the champion was been doing a very good organizational Corinthians – yes, the same Corinthians job. We are confident that Free Fire will of the popular Brazilian soccer team. not be easily overlooked. Investment has "The name Corinthians brings a great been made". sense of responsibility," says Fernando Corinthians' Free Fire team was as- Hamuche, of IGC, a group that has sembled from scratch, with professionals the rights to the Corinthians brand for who had not played together before. They e-sports (with the exception of virtual soc- live in a house in the capital of São Paulo cer games). In less than six months since and, in addition to the name of the soccer its creation, Corinthians' Free Fire team club, they have the support of Nike, that had already won the LBFF and the FFWS. sponsors the club’s soccer team. In anoth- Among all the competitive games er sample of how these universes, soccer

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 15 “We are really happy with the mass adoption we are seeing in Brazil and will continue to improve our services for the entire local community”

FERNANDO MAZZA, HEAD OF OPERATIONS AT GARENA BRASIL

and Free Fire, mix, when inaugurating the residence of Free Fire players, some decorative lights were green, the color of Palmeiras, Corinthians' biggest rival on the fields. "We received feedback from fans saying that in a Corinthians' home there is no green, so we had to switch to Fire/Courtesy Free Photo: white lights," Hamuche recalls, laughing. Garena's last step to capitalize even included some exclusive benefits for more with Free Fire was the launch of those who broadcast on BOOYAH!, such its own streaming app, BOOYAH!, for as special items and the ability to insert Android and iOS. Mazza explains that your voice into the game. the app comes to "complement and bring The Brazilian Free Fire operation better experiences to Free Fire players," began to be set up in late 2018, an indica- allowing simultaneous live streams to tion that Sea, a conglomerate that owns be carried out with other platforms, the brand in Singapore, may have been an important aspect in order to not be taken by surprise by the game's success surprised by a sector that grows almost in the distant South American country. symbiotically to that of e-sports, which Surprised or not, in 2019 intense work are the live streaming platforms. was done to support and expand the Garena's official championships are popularity that, before that, was already broadcast on YouTube and the game’s evident in the many memes on social professional teams and streamers/influ- networks and in the millions of Free encers work under exclusive contracts Fire matches played in Brazil. "We are with Twitch and Nimo, for example. really happy with the mass adoption we "We don't plan to compete directly with are seeing in Brazil and will continue other platforms," says the executive. to improve our services for the entire To convince the millions of Free Fire local community," promises Mazza. For players to give the new app a try, Garena Garena, Free Fire is just the beginning.

16 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING Tailored content from Latin America to the world.

LABS is a business news website about Latin America, focused on economics, business, technology and society. By providing deep and accurate content about the economic and technological landscape of Latin America, both in Portuguese and English, we help readers understand the region’s particularities.

LABS.EBANX.COM

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 17 TECHNOLOGY Not even a year old, LOUD dominates the mobile gaming scene in Brazil

The company became a streaming phenomenon, champion of an international competition and has already earned more than BRL 10 million

BY RODRIGO GHEDIN runo Bittencourt was in the right The creation of LOUD, at the begin- place in 2014. The young man ning of 2019 with two other partners, B born in Viçosa, a small city in the was, for him, the natural path due state of Minas Gerais, wanted to create to the recognition of his own gamer a game channel on YouTube. He chose limitations. "I always wanted to work to make a mobile game, because, as he with e-sports," he confesses, "but I was explains, "it was what I was playing the never a very good player because I most". His preference anticipated and wasn’t into training". helped shape a scenario that, five years Both partners Jean Ortega, with wide later, would lead him to start LOUD, experience in the digital influencer achieve millionaire annual revenues and market and in advertising agencies, make him a reference in an industry that and Canadian Matthew Ho, connected is still experiencing rapid growth. to the idea of investing in the segment Graduated in Computer Science and expanding the business of stream- by the Federal University of Minas ing and content creation. Ortega, Gerais (UFMG), Bittencourt, known Brazilian, now lives in Las Vegas and in the virtual environment by the serves as the chief operating officer nickname PlayHard, has already ac- (COO). Ho continues to live in Canada cumulated significant numbers on his and serves LOUD as chief revenue offi- personal YouTube channel and a se- cer (CFO). Bittencourt moved to São ries of collaborations and businesses Paulo and is the company’s CEO. "I with major brands. He has more than brought the content and they brought 10 million subscribers, more than a the corporate experience, something I billion views of his many “gameplay” am learning now, being in the opera- videos and actions with brands like tional side of the business," explains Ford, Telecine and Supercell. Bittencourt. In one of them, he played With less than a year in the mar- Brawl Stars with Neymar Jr. and ket – the company started operating Marquinhos, Brazilian soccer players in March 2019 – LOUD's numbers from the trendy PSG, from France. and recognition classify the company

18 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING as successful. LOUD had its new So far, LOUD has focused YouTube channel (created in 2019) entirely on Free Fire, the free “We saw this huge skyrocket, being featured in the mobile game that has swept platform's traditional year-end video, Brazil in the past two years. opportunity in the YouTube Rewind; has an exclusive "It's the accessibility," he mobile market in Brazil, contract for live streaming with the starts by explaining the suc- Chinese streaming platform Nimo TV, cess of Garena's game in the with no one positioning where the team's influencers broad- country. "It runs on any cell themselves in a very cast daily to thousands of viewers; phone, it doesn't consume and, in early 2020, won the Free Fire much data franchise, and stable way, investing America’s Cup, held in Mexico City. it is very compatible with deeply, before we Bittencourt says that their commer- the Brazilian market". The global success of this genre, started” cial success follows the audience’s exceptional numbers and the high- Fortnite, for example, re- BRUNO BITTENCOURT, light positions on the competition quires advanced and expen- LOUD CEO podiums. He does not reveal precise sive cell phones to function. figures but says that the expectation Despite the focus on just of revenue for the first year, of BRL 10 one game, LOUD doesn't million, was surpassed with practical- want to stop at Free Fire. "We saw ly a quarter to end the period. this huge opportunity in the mobile It was not a smooth journey, how- market in Brazil, with no one posi- ever. Halfway through, LOUD had to tioning themselves in a very stable make some adjustments. way, investing deeply, before we start- At the start of the operation, for ex- ed," recalls Bittencourt. "We came ample, the hired players had to divide and showed the possibilities. Free themselves between training sessions, Fire is very new and is paying off, competitions and live broadcasts. It but we intend to expand." Where? didn’t work. The strategy was quickly "We don't even know. We just changed and, today, LOUD has two know that we are not just going teams dedicated to each acting front: to stay on mobile." one for competitions, formed by four players, and another one for transmis- sions and creation of online content, with 10 influencers. Players and influencers’ pay- ments come from a mix of sources, or "verticals of revenue": prizes in competitions, sponsorships, image rights, advertising in streaming ... "It is a very large universe and it varies from person to person; we try to understand the best way to leverage [the revenue potential] ," Bittencourt explains.

Photo: LOUD/Courtesy

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 19 20 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING OPINION The future of gaming is portable, especially in Latin America

Those who manage to follow changes and anticipate trends without losing their DNA are the real winners. And Level Up is an example of how decisive this ability is in the gaming industry

BY THIAGO ROMARIZ

he mantra that says that technol- entrepreneurs seek to understand how to ogy makes the market evolve in act in this new type of business, invest- T geometric progression is felt by ments vary and the market is self-regulated the gaming industry like in almost no based on user behavior, which is as unpre- other area. Based on software processing dictable or even more unpredictable than and evolution, this segment is completely the industry itself. transformed at least twice a decade. And, Those who manage to follow changes if we consider that the beginning of this and anticipate trends without losing their industry comes from the 1970s and that it DNA are the real winners. Adaptability stabilized in the following decade, it is pos- here is more important than anything and sible to believe that it is still a youngster Level Up is an example of how decisive compared to other segments, such as the this ability is in the market. Created almost automotive industry, for example. 20 years ago and present in Latin America Although new, the gaming industry al- since 2004, the company has sailed in dif- ready accumulates numbers and followers ferent areas of the gaming world and today as relevant as those of other sectors and it positions itself as an agency specialized has undergone transformations worthy of in audiences that are eager for this type an industrial revolution, if based on the of content. "The market has transformed context of the beginning of the century or itself over the years and we realize that we if we considered a longer timeframe. While deliver more value as a direct service to

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 21 “The market has transformed itself over the years and we realize that we deliver more value as a direct service to the consumer, via social networks or even guiding publishers on how to deal with the end customer”

JULIO VIEITEZ, LEVEL UP CEO Photo: Level Up/Courtesy Up/Courtesy Level Photo:

the consumer, via social networks or even The experience on both sides of the guiding publishers on how to deal with the same coin gives Level Up an obvious mar- end customer," says Julio Vieitez, CEO of ket advantage, but mainly a different view the company in Latin America. of the game industry in Latin America -- Level Up experienced the height of PC one that every entrepreneur in the sector RPGs and formed the knowledge base of should look for, one that brings satisfac- many Latin American players with the tion to the company, but also considers publication of games like Ragnarok and the final audience’s satisfaction a priority. MU in the 2000s. While publishing these Having this perception is not a litany of games and creating a perfect user base for those who deny the importance of profit or the market that would increase in the fol- market dominance, but of those who live lowing decade, the company unconsciously in contact with an audience that constant- matured the idea of being a service for ly demands the presence of the brand in large publishers. actions, when it comes to satisfying and "We have been in the market since mainly responding to eventual problems. Orkut was launched and we have seen the Basically, the brand needs to be as present increase in the impact of communications in its community as the most assiduous when it comes to promoting a game. At player of the game – therefore, to lose sight that time, it was really important for the of the audience is to put the business at brand to be present in advertisements and risk, more than ever. big portals. Today, we see that the indus- Today, Brazil and some Latin American try’s real spokespeople are the influencers countries are going through one of the and there are new networks that are gain- biggest transformations that the gaming ing relevance, like Tik Tok (...) Changes industry has ever seen: the popularization continue to happen frequently and there of e-sports and mobile platforms. In the is a market that grows a lot every year. past, e-sports were seen as a niche within Today, many more people play, which the segment; today they are as much or automatically makes efficient communi- even more important than the games cation and product promotion even more themselves. Mobile devices are no longer necessary," adds Vieitez. expensive peripherals and have taken

22 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING over all smartphones. Today, every cell phone is a video game and this democ- “The mobile domination that ratizes the market in an unprecedented way, especially in Brazil. is now happening in Brazil has "The mobile domination that is now already happened in other happening in Brazil has already happened in other countries and is gaining strength countries and is gaining strength here because the most powerful phones are here because the most powerful cheaper and the games, at the same time, adapt to the processing reality of these de- phones are cheaper and the vices. The success of games like Free Fire games, at the same time, adapt does not come by chance, since it is a game that runs on many devices and is popu- to the processing reality of these larized easily in a country with a growing devices” base of mobile users like Brazil ," explains Julio. "We have a game called Avakin, a JULIO VIEITEZ, LEVEL UP CEO kind of Second Life, which in Mexico alone has around 350 thousand users daily, and is now gaining momentum in Brazil. It has graphics and a similar operation to inhabitants in class D and E have mobile Free Fire, which adapts entertainment to or residential internet access. With the limitations that the users’ devices have," expected advance of the economy and completes the executive. the natural penetration of accessories Given that Brazil is considered one and consumption in the coming years, a of the countries that most accesses the new portion of the population enters the internet via cell phone and spends, on gamer audience targeted by companies average, 9 hours connected according to a that create games like Free Fire, but also Hootsuite survey, there is no way to pre- by others that connect with the audience dict a decrease in this scenario. The main through other channels, like Level Up. reason is the scarce access in less affluent Even though it is constantly changing and social classes, because according to IBGE, of considerable size, there is still a lot of Brazil’s official Institute of Geography and space to invest in the gaming industry in Statistics, not even 50% of the country's Latin America. Photo: Level Up/Courtesy Up/Courtesy Level Photo:

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 23 TECHNOLOGY The world's largest 5G auction has started

Nokia, Ericsson and Huawei know that the contracts that will come through the Brazilian bid are a crucial step for the technology's provision in the entire Latin America

BY CARMEN NERY he auction of frequencies for the “We had the expectation of holding installation of the 5G network in the auction this quarter, the document T Brazil is already in public consul- stayed 150 days with a reporting advisor, tation. If confirmed, the bid will be the Vicente Aquino, who later presented a world’s largest 5G spectrum auction to date proposal that led to requests for views,” and a decisive step for the technology’s explained Leonardo Euler de Morais, provision in Latin America. president of Anatel, to LABS. Only at the frequency of 3.5 GHz, the After the public consultation, each most chosen band for 5G globally, 400 contribution will be analyzed individually. MHz will be sold, the largest block des- In the sequence, a new document will be tined at one time for the new technology. proposed to be forwarded once again to In total, the the bid will make available the Attorney General of Brazil. After the 3.7 GHz in spectral capacity for 5G’s approval of the new bidding notice, the implementation: 400 MHz at 3.5 GHz, 20 business plan for pricing will be to the MHz at 700 MHz, 90 MHz at 2.3 GHz, Federal Audit Court (TCU), which has 150 3.26 GHz at 26 GHz. days to respond. With all these steps, the 5G technology needs a mixed spec- Brazilian 5G’s auction must be effectively trum of low, medium and high bands to held at the end of the year. serve a variety of uses (connections and "We will favor more investment com- services), ranging from improved mobile mitments than the auction’s potential broadband (eMBB) to Internet of Things revenue. And any information about the (IoT) applications in the industry and the amount to be collected is mere specula- management of cities, for example. The tion," said Morais. higher bands usually perform better in In response to international pres- terms of speed, but the sub-6GHz bands sure, mainly from the United States, for are more appropriate for expanding Huawei to be banned from 5G networks coverage–something crucial in a country worldwide, Morais said that Anatel will with more than 5,000 cities. not impose limitations on the participation of suppliers in future networks. “This discussion should not permeate the bidding for the auction of frequency bands “We had the expectation of holding the because it is not the purpose for which it is intended,” Morais told LABS. auction this quarter, the document stayed The Brazilian carriers, in their turn, say 150 days with a reporting advisor, Vicente that more options are fundamental to en- sure the best quality for the 5G network Aquino, who later presented a proposal in the country. They use a combination of that led to requests for views” Nokia, Ericsson and Huawei hardware in their current networks. LEONARDO EULER DE MORAIS, PRESIDENT OF ANATEL

24 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING Ericsson is the Uruguay is the 5G pioneer in the 28 GHz band. As it is a state- leading supplier (with in Latin America owned carrier, an auction was not nec- more than 50% of According to data from the Ovum con- essary, but if the Unidad Reguladora de the equipments) of sultancy, at the end of 2019, 5G technol- Servicios de Comunicaciones (URSEC) the Brazilian carriers, ogy had 5 million subscriptions world- decide to open the network for other followed by Huawei wide, and is expected to reach 1.9 billion operators, those carriers should pay and Nokia. Photo: by 2024. In the same period, the number the price yet to be fixed for Claro and Shutterstock of IoT connections should quadruple , Telefonica in the country. But there is from 1 billion to 4 billion connections. still no deadline for that. The network In Latin America, data from the com- was launched in the cities of Punta Del pany 5G Americas indicate that, during Leste and Maldonado and is expected to 2019, five commercial networks were be expanded to another 12 cities in 2020, launched and 30 tests with 5G were with Nokia technology. carried out. Also in the region, Puerto Rico, the US Among the five countries in the region Virgin Islands, Trinidad and Tobago and that launched 5G networks in 2019, the Suriname launched their networks in pioneer was Uruguay. In April last year, December last year. In Aruba, state-owned the state operator Antel launched the Setar started offering 5G as an evolution of region’s first 5G network, with 800 MHz a 4.5G network provided by Nokia.

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 25 The 5G kick off in Latin America expectation is that the first networks will In the next 18 months, at least four be launched by Tigo, Claro, Personal and countries, in addition to Brazil, intend to the state-owned Copaco. allocate a spectrum focused on 5G: Chile, In Mexico, the country that hosts Ecuador, Mexico and Peru. The 3.5 GHz America Movil, which holds 80% of the band will be offered at all these auctions. market, the regulation is ready and carriers In Chile, where the carriers Claro, already have a frequency of 3.5 GHz to use, Entel, Wom and Telefonica operate, the inherited from the fixed wireless networks Secretariat of Communications (Subtel) Wimax. In addition to 3.5GHz, the 600 placed the public bidding notice for MHz and 26GHz bands were also used the 3.5 GHz and 28 GHz frequencies in for 5G. The public consultation for these public consultation. The auction date frequencies will come out this year. In will still be defined. addition to Claro and AT&T, it is still being In Peru, where Entel, Claro, discussed if Altan, which owns the entire Telefonica and Vietel operate, the 700MHz band in the country, but which Organismo Supervisor de Inversión operates in wholesale, offering capacity for Privada en Telecomunicaciones has virtual MVNO operators, will also offer 5G. already defined the 3.5 GHz band as the In Colombia, the 600 MHz, 3.5 GHz and focus of the auction, and there are dis- 26 GHz bands were chosen. But there is no cussions around the 39 GHz band, the expectation regarding the auction. Is that same adopted by AT&T in the United the 700 MHz band, destined to the mobile States. The next step is to launch the band technology four years ago, was only According to 5G public consultation of the model for 5G. effectively bid for 4G technology last year. Americas, during In Paraguay, the 3.5GHz band was also Finally, in Argentina, where Telecom, 2019, five commercial chosen to enable 5G in the country, but Claro and Telefonica operate, there is no networks were there will be no need for an auction there. forecast for short-term frequency auctions launched and 30 Carriers already have an obligation to by Ente Nacional de Comunicaciones tests with 5G were provide coverage, and anyone interested is (Enacom). Alberto Fernández‘s govern- carried out. Photo: only required to request the spectrum. The ment has yet to address the issue. Shutterstock

26 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING “The broadband service is more of the same with greater speed. The big Ericsson versus Nokia impact will come with the countries’ versus Huawei The main suppliers of 5G technology and increased competitiveness in verticals that already operate in some way in the such as oil and gas, mining and Latin American market are all looking at the auction in Brazil. The dispute to win agribusiness.In 2019, we had the first the carriers in the country is fierce. mines connected in Chile and Peru; in “We conducted tests in all countries in the region, and in Brazil we did experi- Colombia, EcoPetro also adopted LTE ments with all carriers. With Claro, we networks. All of them should migrate to made a holographic exhibition of Lucas 5G when the networks are available” Lima remotely playing with the band at Allianz Parque stadium to demonstrate WILSON CARDOSO, NOKIA’S CTO low latency (better connection quality). One of the biggest applications (of this type of 5G usage) is with telemedicine and education. With Vivo, we did a remote ultrasound and a remote sur- “The broadband service is more gery class test," lists Eduardo Ricotta, of the same with greater speed. The president of Ericsson. The company has big impact will come with the coun- 85 contracts and about 30 commercial tries’ increased competitiveness in networks worldwide. verticals such as oil and gas, mining “In Latin America we do not have and agribusiness. In 2019, we had the contracts because there is no frequency first mines connected in Chile and available or spectrum left to share with Peru; in Colombia, EcoPetro also 5G," justifies Ricotta. adopted LTE networks. All of them On the other hand, he highlights the should migrate to 5G when the net- spectrum sharing project developed for works are available,” lists Cardoso. Claro, using Ericsson Spectrum Sharing In its Global Industry Vision technology. With it, it is no longer report, Huawei highlights that by necessary to have a dedicated spectrum 2025, 58% of the world’s population for technology. “As nobody has a 4G will have 5G coverage. The Chinese frequency left over, you have to wait for manufacturer has already signed 60 the 5G frequencies. I believe that the first commercial 5G contracts and sent equipment will be installed this year and 150,000 base stations to markets the networks will start operating in the around the world. In Brazil, the beginning of 2021,” projects Ricotta. company already conducted tests In January, Nokia announced it had won with Vivo in July 2018; Claro, in 63 commercial contracts of 5G worldwide, October 2018; Oi in March 2019; and with 18 active networks and more than TIM in May 2019. 100 agreements. Wilson Cardoso, Nokia’s According to the company, the CTO, points out that almost all Latin arrival of 5G in the country has the American countries have adopted the 3.5 potential to affect businesses related GHz, 26 GHz and 28 GHz bands as a base, mainly to mobile broadband on which guarantees an ecosystem and scale smartphones, residential internet of terminals for the region. and B2B applications in general.

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 27 TECHNOLOGY How carriers are preparing for the arrival of 5G in Brazil

arriers operating in Brazil are rush- He says that a major transformation ing to test all the usage potential of will be needed at the heart of the network C the technology, in partnership with and in customer service systems. At Vivo, the manufacturers, in addition to the best the entire central part of the network way to exploit it commercially. will be supported by IP technology and The tests have been carried out on dif- the functions of the equipment will be ferent fronts, and with the more interested transformed into software, in the process manufacturers in providing the necessary known as “virtualization," which facili- infrastructure for the implementation of tates the administration of the network 5G in the country (and, of course, in Latin and the provision of services. America): Nokia, Ericsson and Huawei. “In the laboratory we have already simulated a network based entirely on Vivo Telefonica software, although in a real operating While undergoing restructuring in Latin scenario the complexity increases. This America, Telefonica continues to have a virtualization process is a necessity for profitable operation in Brazil. According 5G which is based on cloud computing," to Vivo’s network planning director, Atila explains Branco. According to him, the Branco, the Brazilian 5G network will be an new technology will allow networks to evolution of everything the company has be segregated to offer different services been doing on 4G and 4.5G networks. (network slicing, in industry jargon) and “Vivo is anticipating and investing customer service will be closer to them, heavily in network virtualization, analytics aiming at reducing response time. and artificial intelligence tools to obtain the maximum potential of the 5G network. TIM But the launch of the network depends on TIM made three pilots in what the com- the unfolding of the 5G public consultation pany calls a “living network”–or operation and, later, on the actions derived from this network–, in the city of Florianópolis with debate, ” he told LABS. Fundação Certi / UFSC and Huawei; in the city Santa Rita do Sapucaí with Inatel and Ericsson; and in the city Campina Grande with Nokia and Instituto Virtus / UFCG. “In the laboratory we have already Marco Di Costanzo, engineering director at TIM Brazil, says that the idea is to simulated a network based entirely foster an ecosystem of developers of 5G on software, although in a real solutions. “The moment we have spectrum, all of this preparation will be used operating scenario the complexity to leverage a faster go to market. But after increases. This virtualization the auction, it will be necessary to clean up the spectrum. We believe that the first process is a necessity for 5G which commercial use cases will occur at the end is based on cloud computing” of 2021," assess Di Costanzo. The company is using the experience of Telecom ATILA BRANCO , VIVO’S NETWORK Italia, which launched the 5G network PLANNING DIRECTOR commercially in Turin in June 2019, and

28 LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING already has four other cities covered on the 3.5GHz frequency. In preparation, TIM has already launched 25 data centers, 14 for core network applications and 11 for bringing content closer to the user with the so-called edge computing architecture. In 2020, 10 more data centers, 8 edges and two cores will be installed. “These data centers are the base to run virtualized applications. Our goal is to reach 70% of the virtualized network, but there are functions that are not worth virtualizing,” explains Di Costanzo.

Oi Pictures - Pinguim Saraiva Renato Photo: Regardless of the eventual sale of its mobile operation, Oi has also been preparing its network for 5G. The company has already closed contracts with Huawei and Claro Nokia for the evolution of networks from Claro has been preparing its network for Among the tests with 2G to 5G, but André Ituassu, engineering the arrival of 5G for some time. Although 5G already carried director at Oi, points out that nothing he did not say exactly what stage the com- out, TIM set up a prevents new competitions. One of the pany is in, Luiz Fernando Bourdot, director smart home in a small company’s strategies is to position itself of technological innovation at Claro, said city in the state of as a major infrastructure provider for that there is a strategic plan for network Minas Gerais to show other operators. virtualization in synergy with all opera- features that will be According to him, for the 5G to work tions in América Móvil. possible from the there is no point in having an antenna if “Being innovative is in the DNA of new generation of it does not have a structure behind it. It is Claro. No wonder, it was the first to imple- mobile connection. on top of Oi’s fiber capillarity, the largest ment technologies such as 4G and 4.5G. in the country, is that the company is im- For 5G, Claro has been preparing itself proving its electronic structure, expand- and, in fact, has already carried out many ing the capacity of the optical backbone tests," he told LABS. (OTN), modernizing the core and the According to Bourdot, in 2016 Claro IP access network and the metropolitan was a pioneer in bringing the first 5G network to support all the demand that base station to Brazil, at 28 GHz band, will come from 5G. reaching approximately 4.2 Gbps. The "Oi will be the great enabler in Brazil of following year, the operator tested 5G, which will at some point pass through various uses of the technology, in our infrastructure," said Ituassu. different bands. In 2018, the operator managed to make the first transmis- sion in 8k with 5G technology. And last year, with a temporary use “Oi will be the great enabler in Brazil license from Anatel and Ericsson technology, Claro managed to make an unprec- of 5G, which will at some point pass edented demonstration of holography through our infrastructure” at the Allianz Parque stadium. In the presentation, the musician Lucas Lima ANDRÉ ITUASSU, ENGINEERING appeared on stage in front of thousands DIRECTOR AT OI of people. From Claro’s headquarters, about 17km away from the stadium, he interacted with the conductor and played Led Zeppelin’s Black Dog on the violin.

LABS COLLECTIONS STREAMING, THE NEW FRONTIER IN GAMING 29 On The Spotlight

From stories that date The 20th anniversary The story of Mexico’s first back to a few decades of The Dog's Will drug kingpin ago, to recent events in Launched in 2000, the movie is a comedy With the fall of the Colombians in the region, check out this based on the 1955 play called Auto da Narcos, the plot of this Netflix's original Compadecida by the Brazilian writer Ariano series now follows Miguel Ángel Félix special selection of cultural Suassuna. The film tells the story of two Gallardo (Diego Luna) leading the tips and dive into some of poor young adults – João Grilo (Matheus Mexican cartel in Guadalajara. Amid the Natchergaele) and Chicó (Selton Mello) effort to control the traffickers under the latest Latin American – who try to survive in the midst of the his command and the desire to avenge difficult reality of the Sertão, a region in Kiki Camerana's (Michael Peña) death, productions. Go beyond Northeast Brazil known for its misery and Gallardo continues to be pursued by the business and enjoy it! long periods of drought. The remastered Americans of the DEA. version of the film is available on Globoplay. Narcos Mexico, 2020, Netflix The Dog's Will (O Auto da Compadecida) 2000

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