Brazil's Internet Provider Landscape Stabilizes Amidst Service Diversification

The Brazilian internet service provider (ISP) market has reached a new phase of maturity, with the number of operating companies stabilizing while simultaneously demonstrating a significant increase in service diversification. This trend is highlighted in the recent TIC Provedores 2024 study.

Market Stabilization and Key Figures

The TIC Provedores 2024 study, released by the Brazilian Internet Steering Committee (CGI.br) and conducted by the Regional Center for Studies on the Development of the Information Society (Cetic.br), indicates that the number of ISPs in Brazil has largely stabilized. The survey, carried out between September 2024 and April 2025, estimated approximately 11,853 internet access providers operating across the country. This figure shows minimal change compared to the 11,630 providers recorded in 2022, suggesting a shift from a period of rapid expansion to one of consolidation and qualitative growth. While the total number of formally registered ISPs might surpass 20,000, fewer than 8,000 are considered effectively operational.

Expanding Service Offerings

Beyond traditional internet access, Brazilian ISPs are significantly diversifying their service portfolios to meet evolving consumer demands. The TIC Provedores 2024 study identified notable increases in several key areas:

• Voice over IP (VoIP) telephony: Offered by 35% of providers in 2024, a substantial rise from 23% in 2022.
• TV transmission via IP protocol (IPTV): Increased to 32% of providers, up from 20% in 2022.
• Digital security services: Grew from 24% to 32% of providers.

Furthermore, the adoption of essential internet infrastructure technologies has advanced, with 72% of providers offering IPv6 to customers in 2024, an increase from 64% in 2022. Approximately 34% of companies reported participation in IX.br (Brazil Internet Exchange), citing improved internet service quality and access to content distribution networks as primary motivations. This diversification reflects a market where competition is increasingly focused on quality and value creation.

The Role of Regional Providers and Fiber Optics

Regional ISPs continue to play a crucial role in Brazil's dynamic internet market, particularly in reaching remote and underserved areas. These providers collectively accounted for approximately 52% of Brazil's fixed broadband access by the end of 2024. The country's 'fiber-first' strategy, adopted in the mid-2010s, has been transformative, with fiber optic technology now dominating the market. As of 2022, 95% of providers delivered fiber internet. The average fixed broadband speed in Brazil reached 447Mbps in 2024, demonstrating significant infrastructure improvements. Regulatory bodies like ANATEL (National Telecommunications Agency) actively promote competition and infrastructure growth, including initiatives to expand fiber-optic backhaul connectivity.

Outlook and Challenges

While the market shows stabilization and diversification, challenges remain, including infrastructure costs in rural areas and navigating the regulatory framework. However, the focus on quality, the expansion of fiber optics, and the strategic diversification of services by ISPs underscore a maturing and resilient Brazilian internet sector. ISPs are also exploring new business models, including financial services, streaming, and business-to-business (B2B) solutions, to maintain growth in a competitive environment.