Telefónica focusing on IPTV, FTTH in Brazil

Telefónica is betting on the growth of IPTV along with the expansion of its FTTH network in Brazil. During a conference with analysts to present Q117 results, the company, which operates under the Vivo brand, provided details on the strategy for the local market.

“Today it is possible to deploy an FTTH network for half the cost of an FTTC,” explained the CEO of the company, Eduardo Navarro, according to Tele.Síntese. This year, Telefónica plans to deploy FTTH in 19 Brazilian cities.

The company said that its investments in fiber rose 37% from 2016 to date, while investments in IPTV grew 30% over the same period, Teletime reported.

At the end of Q117, the Spanish company reported 1.66 million pay TV subscribers (DTH + IPTV), down 7% compared to previous year. The company has been shifting its focus on pay-TV from DTH to IPTV. In this sense, IPTV accesses grew 57.1% year-on-year to reach more than 282,000 in March.

IPTV’s share over Telefónica’s total pay TV accesses increased from 10% in Q116 to 17% in Q117, while DTH fell from 90% to 83%. In turn, IPTV Arpu grew 6.6% “reflecting the company’s strategy focused on higher value customers,” Telefonica said in its report.

The FTTx customer base grew by 6.9% (YoY) and reached 4.23 million accesses, of which 959,000 are in FTTH technology, 38.5% more than the previous year. At the end of March, total broadband base reached 7.34 million accesses. FTTH technology went from representing 10% of total in Q116 to 13% in Q117.