Hurry! Brazil is in need of Software for the Telecommunications Industry

The demand for telecommunication software is expected to grow as a result of the convergence of data, voice, and conventional and mobile telecommunications. The most significant topic in this sector is the increase of data communication in cellular telecommunications, which is expected to continue growing for the next few years.

As the largest and most dynamic IT market for the telecom industry in Latin America, Brazil offers significant opportunities for international suppliers of IT products and services for the telecom industry.

The Information Technology IT market for the telecom industry has outpaced Brazil’s economic performance. While the Brazilian GDP has grown 2.9%, the IT sector has grown 15% more than the previous year. The dynamic IT market for the telecom industry in Brazil is nothing new. During the last five years, this market has had an average annual growth of 18.6%, while GDP growth peaked at 5% during the same period; hence, the IT market has been expanding its share of GDP.

There will be a variety of opportunities in Brazil’s telecom sector. For example, the demand for telecommunications software is expected to grow as a result of the convergence of data, voice, and conventional and mobile telecommunications.
The most significant trend in this sector is the increase of data communication in cellular telecommunications, which is expected to continue for the next few years. Business opportunities over the coming years will be linked to increasing data traffic quality and broadband speed.

Tax breaks for Digital TV and semiconductors included in the Government Acceleration Program (PAC)

The Brazilian government's growth acceleration program (PAC) includes tax breaks to stimulate the national digital TV and semiconductor industries by exempting digital TV and semiconductor producers from PIS and Cofins social security taxes as well as IPI industrial tax and Cide tax.

The PAC program was introduced on January 22 with a goal of encouraging R$504bn (US$236bn) in public and private investment over the next four years.

The actions are divided into five groups:

1) Infrastructure (transport, sanitation and housing);
2) Credit stimulation;
3) Institutional development;
4) Tax exemption;
5) Long-term fiscal measures.

By including digital TV in the PAC program the government aims to create conditions that will enable the industry to start commercial transmissions by December this year.

The first digital TV set-top boxes should be on the shelves of shops by now.

The federal development bank BNDES is also studying options to provide a line of credit related to digital TV investments.