Constructive on infrastructure monetization and fixed broadband
Constructive on infrastructure monetization and fixed broadband
We are initiating with a constructive view on infrastructure monetization and fixed broadband in LatAm. Alternatively, we are cautious on mobile revenue in Brazil, as the service is highly penetrated.
270mn people without proper fixed internet; but mobile may be maturing
270mn people without proper fixed internet; but mobile may be maturing
41% of LatAm does not have access to a satisfactory internet. Mobile coverage is decent but expensive. Fixed internet can be much faster and has higher/no data limits. However, its penetration is low in LatAm, below those in emerging markets (50%+) or developed markets (70%+). We are cautious about Brazil's mobile segment, since it is highly penetrated and has been flattish for six years. Mobile customers are less willing to pay for mobile data and are marginally bringing bad debt risk. 5G could turn the game around, but not in the medium term, as we believe fixed wireless access could cannibalize other revenue.
