Telecom sector invested R$7.6 billion in the 1st quarter of 2024

This is a machine translation of a press release by Conexis Brasil Digital

Brasília, 08/13/24 – Telecommunications operators invested R$7.6 billion in the first quarter of 2024, according to a report by Conexis Brasil Digital. These resources were used mainly to expand networks, with a focus on 5G. In the 12 months between the first quarter of 2023 and the first quarter of 2024, 10,000 new 5G antennas were installed throughout Brazil, allowing operators to meet the fifth-generation technology implementation targets set by Anatel ahead of schedule. Companies have already completed more than 70% of the implementation schedule scheduled for 2025, and the technology has been available in 651 municipalities for two years.

In nominal values, the amount invested in the first quarter of this year grew 2.4% compared to the same period in 2023. In real values, discounting inflation for the period, there was a drop of 1.5%.

In the first quarters of the last 5 years, the sector invested R$8.6 billion, on average, in real terms. This amount was driven by investments made between 2020 and 2022 due to the need for operators to adapt to increased demand during the pandemic and, subsequently, to comply with the obligations of the 5G auction.

“We ended the first quarter of the year with 494 cities with active 5G, far beyond Anatel’s target of only covering capital cities by 2024. In the second quarter, we reached the mark of 651 cities with the new technology active,” said Marcos Ferrari, CEO of Conexis Brasil Digital. “The data shows the commitment of operators who have invested amounts close to R$40 billion annually in recent years,” he said.

Revenue - In the first quarter of 2024, the sector's gross revenue totaled R$69.8 billion. In real terms, the revenue recorded in the first three months of 2024 was 4.4% lower than the average of the last 5 years.

Two factors impacted revenue: high inflation and high competition in the sector, which puts pressure on service prices through competitive offers in the fight for customers, according to the quarterly report released by Conexis.

The largest share of revenue came from telephony and mobile broadband, which accounted for 30.8% of the sector's revenue. Fixed broadband accounted for 22.7% of the quarter's revenue.

Employment – The sector closed the first quarter of 2024 with 524.3 thousand direct jobs, an increase of 1.2% compared to the same period in 2023.

About Conexis

Conexis Brasil Digital brings together telecommunications and connectivity companies that are the platform for the digital economy, sustainability and connection for all Brazilians. Conexis, as part of a digital transformation movement that the world is going through, replaces the SindiTelebrasil brand, reinforcing the telecommunications sector's purpose of digitalizing the country and connecting all Brazilians.