Brazilian telcos see voice revenues collapse

But mobile data revenues are growing driven by over-the-top services
Written by Angelica Mari, Contributing Writer on

The increasing popularity of over-the-top (OTT) services has prompted a massive drop in voice revenues for Brazilian telecommunication providers - but mobile data revenues are growing, research has found.

Brazilian users are preferring to use tools such as WhatsApp to make free voice calls and messaging in order to reduce their monthly mobile spend.

Over the first three months of 2015, Brazilians have used up a monthly average of 111 minutes in voice calls - by comparison, the monthly average in the same period last year was 132 minutes, so a 15.6 percent decrease, according to telecoms portal Teleco.

The Teleco data also suggest that average revenue per user (ARPU) when it comes to voice services in Brazil is consistently decreasing since last year. The average voice ARPU in the first quarter of 2014 was R$13.60 ($4.36) - that continued to decrease and hit R$ 11.60 ($3.72) by the end of the year.

On the other hand, OTT services improved sales for the Brazilian telcos and represents a 37.1 percent share of revenue from mobile data plans, according to the research. Mobile data revenues in Brazil have also gone up 31.3 percent in the first quarter of this year in relation to the same period a year ago, driven by the uptake of OTT services.

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