Brazil is expected to have 100mn users of 3G and 4G by 2013, Nokia Siemens Networks (NSN) head for Latin American sales and solutions management, Wilson Cardoso said at the Futurecom telecoms industry conference held in São Paulo.
Currently, the country has about 3.5mn users of 3G technology. According to NSN, the total amount that telcos need to invest in infrastructure by 2013 in order to meet the demand generated by the increase in data traffic comes to 9bn reais (US$4.19bn), which in turn would generate annual revenue of about 36bn reais for operators.
The Brazilian data traffic in 2008 is 35 gigabits per second, while data traffic for 2013 is expected to expand 50-fold to 1700 gigabits per second, with growth estimated at 90% a year, according to Cardoso.
Also, in terms of W-CDMA spectrum, the country currently uses 3MHz and is expected to need 265MHz to meet demand in 2013. This means that spectrum in Brazil would be completely full by 2011.
The company's monitoring of the Brazilian market served to figure out the best time to offer LTE locally. Cardoso believes a mature LTE offer for the country will take place around 2011.
"Brazil agreed to follow international standards back in the year 2000 and the best spectrum to offer LTE worldwide is 2.6GHz due to the large amount of traffic supported," said NSN Latin America corporate affairs head Mário Baumgarten.
The executive explained that other bands were being discussed for the future, with a range between 1GHz and 1.5GHz as the ideal global standard for 2020.
The company's Latin American operations for this year's first three quarters grew 20% compared to the same period last year. The global financial crisis is being closely observed and the company will soon release growth expectations for next year, according to NSN Latin America head Armando Almeida.
If the Brazilian currency remains weak against the US dollar, the company may rethink its strategy of not producing equipment in Brazil. However, no decision has been made on the matter, said Almeida.
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