Brazil telecom investments see double-digit drop in 2020

Bnamericas Published: Tuesday, March 23, 2021
Brazil telecom investments see double-digit drop in 2020

Investments in telecom networks in Brazil fell 15.6% to 7.2bn reais (US$1.31bn) in 2020, according to a report from ICT industry association Brasscom.

Capex on corporate networks felt the hit of the pandemic and fell even more, 17.7% to 1.7bn reais.

The figures, compiled from data by Frost & Sullivan and IDC, were presented by Brasscom head Sérgio Paulo Gallindo at the entity's TecFórum event, held online this Tuesday.

On the other hand, datacenter investments jumped 17% to 4.3bn reais, according to the report.

For 2021, Brasscom expects telecom network investments to remain flat and those in storage and servers to reach 5.3bn reais (+23%).

Looking ahead, Brasscom sees technologies related to digital transformation, mobility and connectivity amounting to 845bn reais in investments between 2021 and 2024.

Cloud computing investments are expected to grow 20% in the same period. Last year, fueled by remote working, investments in software based on the cloud soared 166%, while cloud infrastructure (infrastructure-as-a-service) expanded 128%.

Also driven by the pandemic, sales of computers grew 10.6%, to 20.7bn reais, while those of smartphones and tablets increased 3.4% to 50.2bn reais.

Overall, gross revenue of the ICT sector in Brazil was 507bn reais last year, which Brasscom says is equivalent to 6.8% of GDP.

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