Brazil’s telecom companies are expected to end the year with lower demand for new mobile infrastructure, reported bnamericas. According to a new forecast by Abrintel, the year-over-year drop is attributed to Winity Telecom’s return of the 700 MHz bands, a consolidation of Oi towers, and the ongoing densification of 5G networks, which rely on existing towers.
Luciano Stuz, president of Abrintel, said, “Throughout this year, we’re seeing a certain ‘freeze’ in orders. We’re seeing very few contracts being placed, and only contracts regarding coverage obligations.” He’s referring to the market’s position for 2025, which is in “standby mode,” and the uncertainty of the next steps for the frequencies returned by Winity and associated infrastructure projects.
Although Stuz anticipates a drop in new investments in the coming year, some infrastructure projects have seen an uptick. Municipal legislation for the installation of cell sites across Brazilian capitals and large cities allowed large operators to install more 5G antennas than required by regulator, Anatel.
The primary tower companies in the market include American Tower (NYSE: AMT), Highline do Brasil, a DigitalBridge Group (NYSE: DBRG) portfolio company, SBA Communications (NASDAQ: SBAC), IHS Towers (NYSE: IHS), and QMC Telecom, that together account for nearly 70 percent of the installed infrastructure, reported bnamericas.
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