Foreign investment and consolidation in the Brazilian mobile telecommunications market

Abstract

PurposeThis paper aims to analyse structural changes within the Brazilian mobile telecommunications market. More particularly, the paper aims to highlight why the market was fragmented and identify drivers for its subsequent consolidation.Design/methodology/approachComparative case studies are used to understand change in the Brazilian mobile telecommunications market. The evolution of the market is described and key factors driving change identified.FindingsThis paper shows how each of the leading mobile telecommunications groups in Brazil employed a different strategy, both for entering into the fragmented market and for participating in its subsequent consolidation. Attention is also drawn to the role of government in determining market structure, not least in terms of its rationale for initially fragmenting the market in order to encourage foreign investment.Originality/valueThis paper provides a detailed analysis of structural change within the Brazilian mobile telecommunications market. In doing so, it sheds light on the role played by foreign telecommunications companies in the transformation of one of the world's largest, but often overlooked, telecommunications markets.