MVNO Exit Highlights Difficulties for Brazilian Mobile Network Operators

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1Q 2019 | IN-5356

 

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In Q4 2018, Brazilian insurance provider Porto Seguro publicized plans to shut down its MVNO, Porto Seguro Conecta, in order to shift focus to its core business and other opportunities “that have a competitive advantage.” This seemingly validates reports from earlier in 2018 that the insurance provider was concerned about its MVNOs performance. While it achieved the highest possible assessment in the Satisfaction and Quality survey of Brazil’s National Telecommunications Agency (Anatel), Porto Seguro Conecta failed to reach the number of subscribers originally forecast when it was Brazil’s first MVNO to launch in 2012 as an add-on automotive tracking service to its parent company’s insurance products.

Porto Seguro forecast that its MVNO would reach one million subscribers by 2017, but it fell short, ending the year with only a little over 560,000 voice and data subscribers. Porto Seguro will transition its cu...

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