The connected farm strategies of Telefônica and TIM
Telefônica Brasil and TIM are the most advanced telcos in the digitization of Brazilian agribusiness, although both embrace distinct strategies.
TIM emphasizes the availability of its solutions and antennas, with dedicated connectivity agreements via integrators, in addition to partnerships through the ConectarAgro consortium, of which it is a founding partner.
One of the operator's most emblematic projects is the Água Boa farm, in Mato Grosso. The project started in 2021, in partnership with Case IH, a unit of CNH Industrial, and includes the connectivity of the farm's surrounding localities.
TIM reported this week that over 26,000 people, 10 health centers, 30 schools and at least four universities have benefited from its 4G coverage in the region, in addition to the farm. The network covers an area of 3,000ha.
At Água Boa, TIM's connectivity allows professionals from the AFS Connect Center, Case IH's technology center in Sorocaba, São Paulo state, to monitor the entire operation despite being more than 1,400km away, the telco said.
Other TIM cases in agriculture include SLC Agrícola, Água Santa, Jalles Machado and Insolo. The telco also has an IoT marketplace for the segment.
In 2022, projects developed through ConectarAgro covered 12Mha of rural and remote areas with 4G.
TELEFÔNICA
Telefônica is also betting on connectivity and industry solutions, but has fewer contracts.
Most of its known contracts are with large bioenergy producers, such as Brasil BioFuels, Latin America's biggest biofuel group, with which it has a 4G IoT project, and an NB-IoT project at Guanabara farm.
Vivo Empresas, the corporate segment of Telefônica Brasil, has invested in partnerships with public banks for connectivity projects in the countryside, leveraging also on cross-selling of rural credit.
On Tuesday, the operator's B2B unit announced a partnership with Broto, Banco do Brasil's digital platform dedicated to agribusiness. Created to facilitate access by rural producers to solutions, including for precision agriculture, the platform will offer Vivo’s products.
“The agreement will enable the offering of Vivo's rural portfolio in the most complete digital ecosystem of agribusiness, through which the producer also has easy access to credit lines from Banco do Brasil, the largest financier in the sector, and protections from BB Seguros,” Telefônica Brasil said in a release.
Among the solutions in Vivo's portfolio are spraying drones; Vivo Maquinário Inteligente, a telemetry solution for managing tractors and harvesters; and Vivo Clima Inteligente, meteorological stations to support decision-making about the best time for planting, cropping and harvesting.
OPPORTUNITIES
A 2022 study by the agriculture ministry estimated that the deployment of nearly 11,000 new telecom towers and antennas in rural areas by 2026 will increase coverage in those areas to roughly 90% and has the potential to generate economic gains of 101bn reais (US$20.2bn) in the sector.
A separate report, published by agricultural institute IICA, estimated that around 72mn residents of rural areas in 26 countries in Latin America are unable to access connectivity with minimum quality standards.
The report said that there was a 12% improvement in so-called significant rural connectivity in Latin America in 2020-22.
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