After Mexico, Motorola Solutions mulls Brazilian MVNO
US provider Motorola Solutions is considering the possibility of setting up a mobile virtual network operation (MVNO) in Brazil to serve certain companies and institutions, the firm's country manager Elton Borgonovo told BNamericas.
For now, the company is still studying the feasibility of an MVNO. A specific model has not yet been thought of nor has an MVNO license been requested to regulator Anatel.
"But yes, it is a possibility and it is in the company's interest. Depending on the needs of the client, we could use it to offer a full set of end-to-end services, from network connectivity to managed services," Borgonovo said.
Brazil has two types of MVNO licenses: the autorizada model, a kind of full-MVNO license in which the company uses the network and frequency of a carrier and has the obligations of a typical mobile operator; and the credenciada model, under which the MVNO sells chips and SIM cards and has fewer obligations, with no direct relationship with the carrier.
The Brazil MVNO move would follow the launch of a security MVNO in Mexico, last year.
There, in parallel to its operations, the company started offering mobile broadband connectivity to local police forces via Altán Redes' Red Compartida wholesale network through pilot projects in some states.
BOLSONARO'S ANTI-CRIME RHETORIC AN OPPORTUNITY
Borgonovo expects 2019 to be even better than 2018, which he described as an "excellent year" for operations in Brazil.
The company does not break down figures per country or per region, but the executive forecasts a two-digit expansion in the country.
One of the reasons for doubling down on optimism with Brazil, Motorola executives said, is the presidency of Jair Bolsonaro, a retired army captain elected with promises to focus on public security and fight organized and common crime.
Key projects rolled out in 2018 include a public security deployment with Paraíba state, where the company installed the TETRA radio system for security forces.
"Paraíba is perhaps the first case of LTE radio use in Latin America. I'm not aware of any other state in Brazil with such a high level of integration and interaction among the security forces (civil and military police, among others) under a same system," Motorola Solutions' sales director Alexandre Giarola said at a press conference in São Paulo.
In 2018, Motorola also signed a contract with Paraná focusing on the state's prison system and the deployment of a new radio communication system to Galeão international airport in Rio de Janeiro.
RESULTS AND M&As
Worldwide, the company recorded revenues of US$7bn in 2018, up 15% year-over-year, according to its earnings results.
For 2019, the company projects a 7% growth, according to Borgonovo. Results tend to be higher and reach the two-digit rate on inorganic contributions (acquisitions).
Motorola's Q4 results included revenues of US$2.3bn, up 15% from the year-ago quarter, including US$159mn of revenue from acquisitions and US$25mn of revenue related to the adoption of an accounting standard. Organic revenue, which excludes acquisitions and the accounting change, was up 6%.
Motorola's latest acquisitions include VAAS and Avigilon. For this year, further M&As are on the radar including in Latin America, Borgonovo said.
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