The mobile telephony sector in Brazil after PMS: operators¿ strategies and landline-mobile convergence

Abstract

This article analyzes how PMS (Personal Mobile Service) regulation made by Anatel in Brazil in 2001 changed the market structure and the operators¿ strategies for the telephony sector between 2002 and 2007. It was carried out a quantitative research and a multiple case study about the main operators in Brazil: Vivo, Tim, Claro and Oi. According to this sector analysis and the influence of external factor as regards the market structure, the classic theoretical reference of competitive strategy was used to better understand the operators¿ strategies. It was also used a more specific reference for the telecommunications sector featuring the works related to the convergence between the landline and mobile telephony. Within the conclusions of this paper, there are the effects related to cost strategy until the rollout of innovative service on a marketwide basis. They are deemed by the integration between the operators of landline and mobile telephony by promoting strategies of differentiation clearly presented by the formation of two strategic groups: the former related to convergent services bundle type and relations of quasi-vertical integration between the landline and mobile operators and the latter related to convergent services between vertically integration landline and mobile operators.