TIM Participacoes SA (ADR)
Brazil is fifth-largest mobile market in the world. As wireless penetration in Brazil is over 130%, it is important for companies to focus on efficiency rather than growth. Also, wireless revenue faces added pressure after Anatel mandated industry-wide fee cuts.
There is a fixed-to-mobile services substitution, but internet penetration is still rather low and is expected to surge over the next few years along with economic growth. Pay television also more »
Over the past few years wireless data consumption has increased dramatically due to the rapid adoption of smartphones and tablets, as well as world economic growth.
Although Latin America’s economic growth has slowed down, there is one more reason to keep telecom stocks in any portfolio: they are defensive. This means that cash flows for telecom companies are relatively stable over the years compared to the rest of the more »
In an effort to boost the domestic economy, Brazil decided to pave its way towards high growth rates by building roads and railways. For the full year of 2012, Brazil's GDP growth is estimated to be less than 2 percent, the lowest annual performance since 2009. Brazil's need to modernize the economy is urgent, and infrastructure improvement might be a catalyst. After all, the 2014 football World Cup more »
Global telecom companies have diversified their operations globally, which reduces their operational risk. While diversification is good for the portfolio, it also reduces the rewards, which makes it tougher for the telecom giants to globally stage their turnaround. It is for this reason that spotting high growth opportunities is difficult. Portugal Telecom (NYSE: PT) is one company that had its operations limited to Portugal. The company started diversifying its operations more »
Brazil faces an infrastructure crunch thanks to two upcoming major sporting events, the 2014 World Cup for soccer and the Summer Olympics in 2016.
The expected huge influx of travelers will put unprecedented strain on all of Brazil's inadequate infrastructure including roads, airports, hotels and telecommunications. The country's telecoms network is already under a strain as Brazil is one of the world's fastest growing telecommunications markets thanks more »