Tech Roundup, Feb. 14, 2020 | Small providers revolutionizing Brazil’s internet

You’re reading The Brazilian Report‘s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: how small internet providers are boosting fiber-optic broadband; the boom in job opportunities for the tech sector; how politics turned Brazil’s internet in a less civilized place. 

Small internet providers are taking over Brazilian broadband

Brazil’s small broadband providers exceeded expectations in 2019, posting growth of 32 percent over the year. As a group, these companies control one-third of the market, which translates into 9.88 million homes. America Movil’s Claro, the market leader, provides services to 9.58 households on its own. The growth of small operators is fueled by Brazil’s transition into higher-speed fiber-optic broadband connections, and two-thirds of this segment are controlled by smaller companies. In 2019, fiber optic connections reached 10 million homes—a 72-percent increase from the previous year.

Why it matters. Small providers focus their efforts on Brazil’s countryside, bringing internet access to areas which have been long forgotten by major players. 

Comparing. Data from Brazil’s telecom regulators Anatel shows that in the poor Northeastern region—where small providers control 73.3 percent of fiber optic connections—the technology already reaches 36.5 percent of all broadband points. That rate is 32 percent in the richer Southeast.

Strategy. These internet providers are overcoming Goliaths thanks to their laser focus on niche segments and changes in consumer behavior. Big companies often sell TV-phone-internet combos—which come at high prices—while small providers specialize in faster and cheaper internet. 

The strategy has met success, but not only due to new broadband consumers: the decline of landline telephony...