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A new report from Pyramid Research predicts that rising mobile penetration and new IPTV services will fuel growth for Brazilian telcos over the next five years.

The research firm forecasts that mobile penetration will grow from 118% in 2011 to 153% in 2016, while the number of IPTV subscribers will rise from 21,000 in 2011 to 1.5mn in 2016.

"Brazil has been experiencing a significant enrichment of the middle and lower classes, and more and more services are being customised to address that demand," said Vinicius Caetano, senior analyst at Pyramid Research.

Pyramid Research believes that over the past year, the mobile and pay-TV offers that have succeeded best in Brazil were those that had a segmentation logic built into their strategies, addressing a portion of the population that could not previously afford these services.

"The reality of Brazil has changed, and operators need to segment their strategies and adapt to the new characteristics of the demand," added Mr. Caetano. "With increasing user sophistication, there is no more room for one-size-fits-all strategies."

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