Due ot its vast area an concentration of connectivity in the urban areas, remote areas ISPs are primed to move to 4G

1. Brazil’s Oi should work with OTT

2. Brazil is the 5th Country in Smartphone Usage
Smartphones are the primary source of internet connection for 60% of all
Internet users in Brazil, as per eMarketer data.
Brazilians are avid smartphone users. A recent study by Pew Research Center
revealed that 84 million adults in the country own a smartphone, which
represents 54% of Brazilian adults.
However, as families often share one device, eMarketer estimates that 120 million
Brazilians access the internet via smartphones.

3. Only Japan grows
mobile faster
than Brazil
But Brazil is a 22
times bigger than
Japan is

4. Connectivity is Slanted Towards Upper Income
The Brazilian Small ISPs are in
the periphery and remote
areas where the lower income
are concentrated
ISPs need to be federated with
bigger players
Like I am doing here in Kenya
From 2010 to 2014
the improvements
benefited the upper
income echelons

5. Connectivity is Slanted Towards Urban Areas
Brazil trails other countries in penetration rates and quality of services.
• Customer dissatisfaction with fixed wireline providers of ADSL
• Fixed wireline providers neglected the remote and rural areas.
• Availability of electrical utilities fiber network
• Years of low investment in fixed data opened a market for Small ISPs
to invest in FTTH and churn users from ADSL provided by the fixed
line Telcos
If the Brazilian rural and remote areas are left with
a fixed network satellite operators will quickly offer
the mobility that IoT requires in the remote areas.
Both, the small ISPs and the big MNOs will forfeit
that business. Therefore, it is in the interest of both
to cooperate to build mobility in the countryside.

6. Connectivity Overview
552,213
13,800,366
6,369,586
3,495,188
3,079,448
10,527,818
4,057,773
Data Connectivity Break Down per type of access
Dial Up Fixed Data CATV and Optical fiber Copper DSL Wireless Satellite Mobile Data 3G or 4G Does not Know
Cannibalization of wireline operators by Small ISPS
The TIC households research is carried out annually since 2005 with the objective of mapping the access to ICT infrastructure in the urban and rural households of the
country and the ways in which these technologies are used by individuals 10 years of age or older.
Source: TIC households research
The Small ISPs natural grow path is to go 4G
What prevents Small ISPs to go mobile?
• Too small to go alone
• Perceived complexity of 4G networks
• Lack of spectrum

7. The Role of the Small ISPs
From every 10 new broadband
access in Brazil, eight are
connected to small ISPs
The set of players that are considered
Small ISPs, leaves out only the large
providers, Telefônica / Vivo, Claro / Net,
Tim, Oi and Sky.
Brazil trails other countries in penetration rates and quality of services.
• Customer dissatisfaction with fixed wireline providers of ADSL
• Fixed wireline providers neglected the remote and rural areas.
• Availability of electrical utilities fiber network
• Years of low investment in fixed data opened a market for Small ISPs to
invest in FTTH and churn users from ADSL provided by the fixed line Telcos
The Small ISPs natural grow path is to go 4G
What prevents Small ISPs to go mobile?
• Too small to go alone
• Perceived complexity of 4G networks
• Lack of spectrum

8. Share Spectrum for 4G
REPORT NO 4/2016 / SEI / SOR
PROCEDURE NO. 53500.014706 / 2016-50
Sub-section "Spectrum sharing"
The legal framework implemented from the General Telecommunications Law does not impede the sharing of radio spectrum. On the contrary, it can
be understood that the law seeks to encourage the use of this mechanism, especially when predicting, in its article 127, that in the discipline of the
exploitation of services in the private regime one must guarantee the efficient use of the spectrum.
Complementarily, the law in the article makes clear in its article 163 that the use of radio frequencies can be given in a non-exclusive, besides
defining, in its article 164, specific treatment rules for exceptional situations in which its use for more of an interested party is prevented by technical
limitations.

9. Combine Oi with Small ISPs
Brazil has 5.570 municipalities. The operator Oi is present in 3.200 of them.
Oi is the largest fixed telephone operator and the fourth mobile telephone operator in Brazil, being the third largest
telecommunication company in Latin America.
TIM and Oi already share spectrum among them. Spectrum sharing is nothing new to Oi.
Small ISPs cannibalized Oi's revenue by building fiber. Now, belatedly, Oil is building FTTH.
Small ISPs would launch 4G services in areas where Oi has no interest
Oi can turn a table and, instead of fighting the Small ISPs, can use them to create new revenue streams.
What is in it for Oi? Oi sub license spectrum and rents, backhaul. Two new revenue streams!
What is in it for Athonet? We will get on board a big share of these 6,000 Small ISPs to leverage their fiber networks to build 4G
The Small ISPs take the risk and heavy lifting service. We provide the simplicity of the Cloud-Native core.