UK-based mobile phone giant Vodafone has formed an agreement with Brazil’s Datora Telecom that will allow it to enter the Latin American country’s burgeoning M2M market.
Vodafone (Newbury, UK) said it was looking to support the growing number of multinational businesses that want to provide M2M services in Brazil.
It plans to work with Datora (Sao Paolo, Brazil) on providing customers with high-quality M2M communications services.
Datora set up a dedicated M2M business in 2012 and since then claims to have installed more than 150,000 M2M connections on behalf of corporate clients in a variety of sectors, including automotive, security, utilities, medical and financial services.
“Our agreement with Datora Telecom supports the increasing demand we are seeing from our customers for M2M services in South America and Brazil in particular,” said Erik Brenneis, Vodafone’s M2M director. “We are a market leader for M2M services and we can now make it easier and strengthen the benefits for our customers operating in this dynamic market.”
Vodafone says the deal with give it a nationwide presence in the fast-growing Latin American market.
According to Business News Americas, the agreement will see Datora Telecom rebrand its Datora Mobile unit as Vodafone Brasil.
Licensed by Anatel, Brazil’s telecoms regulator, to operate as a so-called mobile virtual network operator (MVNO), Datora had some 7,102 accesses at the end of June, reports Business News Americas, but the company operates mainly as a mobile virtual network enabler – helping other companies to establish themselves as MVNOs.
As the region’s largest market, Brazil is attracting plenty of interest from companies targeting the M2M space, although regulation has not always been favourable.
For instance, earlier this year, Bloomberg New Energy Finance said changes to rules regarding the installation of smart meters in Brazil had dealt a huge revenue blow to foreign companies previously attracted to the sector.
Having originally mandated the rollout of smart meters, regulatory authorities amended the plans so that utilities would only have to install smart meters if consumers requested them.
Meanwhile, the SIMalliance, which monitors SIM shipments worldwide, noted an 11% fall in SIM shipments in Brazil between 2011 and 2012 because regulatory authorities had stopped operators from providing services in several regions while they investigated complaints about quality of service.