Telefónica to extend Vivo service

Juan Fernandez Gonzalez | 03-09-2013

Telefónica is to extend its direct-to-home (DTH) service in Brazil, after returning to the market a few months ago. The Vivo TV satellite platform is currently only operating in Sao Paulo but "the company will make a geographical expansion," according to Rafael Sgrott Martins, the operator's video director.

"We see there is a possibility to expand the service, but it will be done gradually," explained Martins, who said that Telefónica is aware of the high competition in Brazil's pay-TV market, and this is why it would be looking for the "best opportunity" to expand. Speaking at the 33rd Tele.Síntese event, Vivo's director didn't clarify which parts of the country are best placed to get the DTH service.
Due to the high concentration of pay-TV and DTH services, the company recently stated that it wasn't interested in leaving Sao Paulo, where it said it had "a better knowledge of the telecoms market".
The pay-TV market in Brazil is on the rise again, although the figures aren't so solid. DTH platforms gained 4,000 new subscribers, while the pay-TV customers grew to 16.98 million, with DTH being used by 61.8% of these. The forecast may be optimistic, but points to a total market of 23 million users by 2016, with DTH being used by 12 million.