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Torpedo fall short in Brazil

SMS, popularly known as ‘torpedo’ in Brazil, has been slower to catch on in this country than in other Latin American markets. In 2008, we estimate that the average number of text messages sent from Brazilian mobile phones is not much more than 10 per month, compared with about 140 in Venezuela.

This is mainly due to the high price of SMS in Brazil. In 2007, Brazilian operators were charging US$0.18 on average per message, while in neighbouring Argentina the cost was US$0.05. In Colombia an SMS was costing on average US$0.06 and in Venezuela US$0.03. In June 2007, Claro lowered its SMS price by 20% to R$0.30 (US$0.19), the lowest at the time in Brazil.

In mid-2008, TIM Brasil was charging R$0.39 and Vivo R$0.35 per message. Claro still charged R$0.30. Vivo, however, also offered several SMS packages, including one at R$14.90 for 100 text messages to be sent within a period of 30 days.

Reducing SMS prices would certainly lead to increased traffic, which would more than compensate for a temporary drop in revenues, but operators have been unwilling to test this theory; instead, they have blamed the low SMS take-up on lack of interest or ignorance on the part of the public rather than on high prices.

Nevertheless, mobile data is a promising source of revenue in this country. Given its size, Brazil is the largest market for mobile data in Latin America, with a growing demand for ringtones, mobile games, and Portuguese mobile content.

According to the latest official data, SMS traffic in Brazil increased by 20% in 2006, to 8.4 billion messages, compared with 7.0 billion in 2005. Around 90% of messages were person-to-person, while the application-to-person market accounted for the remaining 10%. Revenues from data services averaged about 7-8% of total operators’ revenues in 2006. During 2006, operators generated revenues of R$2.4 billion (US$1.2 billion) in SMS traffic.

See also:

Brazil – Mobile Market – Overview & Statistics;

Brazil – Mobile Operators.

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WiMAX licence owners concerned about spectrum cap

New Zealand WiMAX licence owners say that the Commerce Commission’s decision to limit each WiMAX licence to 40MHz of spectrum is discouraging telcos from building networks.

However, the regulator claims that the 40MHz cap, which is in force until December 2012, is designed to increase the number of players with WiMAX spectrum, and that 40MHz is sufficient spectrum to deploy a nationwide network.

Operators however claim that it does not make sense for several firms to deploy separate networks. They are also complaining that they are unable to utilise their WiMAX licences until current licensees lose their rights to frequencies in 2009 or 2010.

See also:

New Zealand – Broadband – Statistics, Overview & Providers;

New Zealand – Wireless Broadband – Statistics, Overview & Providers.

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NZ Communication launch delayed to 2009

After previously signing a nationwide roaming deal with Vodafone New Zealand, NZ Communications had hoped to begin services in October 2008, but has fallen behind with its network rollout, with just 50 base stations built out of the 450 it had planned. Launch is now unlikely before 2009.

The mobile operator has so far been unable to put in place co-location agreements with Vodafone and Telecom Mobile. New legislation which will speed up co-location is expected to be introduced by the New Zealand government in November 2008.

See also:

New Zealand – Mobile Communications – Statistical Overview and Major Operators;

New Zealand – Mobile Communications – Analyses;

New Zealand – Mobile Communications – Spectrum.

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