Telecom sector ends 2023 with R$35 billion in investments

This is a machine translation of a press release by Conexis

Brasília, 05/28/24 – The telecommunications sector invested, in 2023, R$35 billion. The result remains stable in relation to previous years, at around 20% of net revenue. In 2022, total investment reached R$40.2 billion, according to data from Conexis Brasil Digital. In 2021, this number was R$40.8 billion. The difference is related to meeting the goals of the 5G notice. The 2023 results complete a three-year cycle of strong investments in the sector to develop the 5G network in the country in record time.

“In 2023, 5G technology was activated in 352 cities, where 54% of the Brazilian population lives”, says Marcos Ferrari, executive president of Conexis Brasil Digital. “In 2024, our commitment is to maintain the necessary investments and defend adjustments and reforms that help increase access to connectivity, such as Tax Reform”, adds the executive.

As a result of network expansion, the report indicates that Brazil is more connected. The main highlight of 2023 was the growth in fixed and mobile broadband access and the gradual adoption of consumers to the 5G service. Last year, broadband data indicates 4% growth in access to fixed and mobile networks. In the 4th quarter alone, the sector reached 235.5 million accesses on mobile broadband and 47.2 million on fixed broadband, totaling 282.8 million accesses. 5G reached 21 million accesses at the end of the year.

Revenue – In 2023, the sector recorded real gross revenue (values corrected by the IPCA) of R$279.4 billion, a 5% drop compared to the average of the last four years. Competition in fixed broadband and competition for 5G customers in mobile telephony make price a competitive differentiator, which has impacted the sector's revenue growth. But there is a positive expectation regarding the increase in revenue, mainly due to the advancement of 5G in the production and innovation sectors. “We believe that 5G has the potential to create new sources of revenue for the sector, based on the application of technology in different sectors of the industry. Furthermore, there are consistent investments in innovations such as Open Gateway, an initiative aimed at developing standardized solutions using operator networks”, adds Ferrari.

4Q23 Results – In the 4th quarter of 2023, the telecommunications sector invested R$10 billion, an increase of 14.9% compared to the 3rd quarter of last year. The value represented, however, a drop of 10.2% compared to the 4th quarter of 2022. The sector's gross revenue reached R$68.5 billion in the 4th quarter of 2023, 9% below the average of the last four years. In comparison with the same period in 2022, a drop of 6.9% was recorded in real values.

Accesses – In 2023, Brazil registered 282.8 million broadband, fixed and mobile accesses, an increase of 11.3 million compared to 2022, or 4%. Highlight is the growth in coverage and quality – since 2019, the average access speed has increased more than 5x, reaching 335Mbps. The increase in average speed is also a result of the increase in fiber optic access, which represents 74% of the base.

For mobile telephony, in 2023, 256 million accesses were recorded, of which 21 million were on the 5G network. Since 2021, there has been a natural tendency to exchange technology, with a reduction in the number of 4G accesses and growth in 5G. In the last quarter of 2023 alone, there were more than 14 million 5G accesses, reaching the level of 2G and 3G.

The country ended 2023 with 91,100 antennas, an increase of 4% compared to the previous year. This growth is mainly due to the expansion of 5G technology, which requires a greater number of antennas.

Employment – The sector ended 2023 directly employing 518.8 thousand workers. Compared to 2022, there was a 0.6% reduction in the number of direct jobs.

About Conexis

Conexis Brasil Digital brings together telecommunications and connectivity companies, which are the platform for the digital economy, sustainability and connection for all Brazilians. Conexis, within a movement of digital transformation that the world is going through, replaces the SindiTelebrasil brand, reinforcing the telecommunications sector's purpose of digitizing the country and connecting all Brazilians. Access our content by clicking here.