The good news is that the Brazilian market is currently in a growth phase. In the first few years following liberalization, the focus was on infrastructure deployment and investment. As a result, Anatel estimates the number of installed wireline access lines at 35 million and wireless access at 21.5 million by 2000. That is remarkable progress in a short period of time. The real test will arrive when the character of the market changes significantly following further liberalization. The landline market will witness this in 2003 and beyond.  You can expect a shakeout in the market with many companies exiting the market under the weight of competition. Mergers, acquisitions and alliances will eventually create a handful of large national players offering a full suite of services.

Lokesh Sehgal
President
Learning Orbit, Inc.