July 31, 2006

Ringing the changes in Brazil

Thousands of less-well-off Brazilians who use mobile phones pose a problem for operators in one of the world's most rapidly growing mobile phone markets, reports the FT.

"Companies have had no problem about winning new customers, with the market increasing by 295 per cent since 2000 to reach 91.8 million users.

But four out of every five customers use pre-paid cards and generally spend far less on calls than their better-off counterparts. Competition among the operators has been so fierce that the Brazilian market has become one of the least profitable in the world."

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