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The Next Billion Consumers

A Road Map for Accelerating Telecommunications Growth in Brazil
October 15, 2007 by Marcos Aguiar, Jörg Funk, and Michele Pikman
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Brazil has more than 40 million fixed lines and 100 million mobile handsets in use. To date, telecommunications operators have focused mostly on the high end of the market, while viewing two-thirds of the country—34 million households—as a burden to be served out of regulatory obligation or not at all. These households constitute a distinct group of consumers—the next billion—whose potential to become profitable customers has been underestimated and at times misunderstood. Many of them have or have had telephone service, but products and services have not been geared toward them. With the high end of the market saturated, the next billion consumers represent a new opportunity for operators.