Fixed broadband continues to grow in Brazil. As of December 2024, there were over 52.5 million reported fixed broadband lines, up 8% compared to December 2023. According to TeleGeography, Brazil finished 2024 with a household penetration rate of 57%, well below the regional average for Latin America.

What is clear is that the market is still growing. A key driver for this growth is TV based Internet usage. 53.5% of Brazilian users now access the internet from their TVs — more than those using a computer — and this figure has grown 3.7 percentage points in the 2023-2024 period. This growth in streaming services has led to Brazil becoming the second-largest market for Netflix, and being touted as a “streaming powerhouse”.

This rising demand for bandwidth-heavy applications like video has accelerated the need for fiber. As of July 2025, Anatel data shows that 78% of connections were fiber. However, there remain significant underserved areas, particularly outside of major cities, where fiber is still needed.

At the same time, market dynamics are evolving. Brazil’s fixed broadband market is extremely fragmented. Estimates suggest there are 10,000 to 19,000 internet service providers (ISPs). Smaller providers (Prestadoras de Pequeno Porte or PPPs) now combine to control 57.0% of the market as of Q2 2025. In large part, this is the result of these smaller providers pushing fiber into midsize interior cities. These cities are traditionally underserved by the larger national providers, however PPPs have been able to step in to fill the gap. PPPs have benefited from a number of regulatory incentives, including regulated prices for wholesale access in some areas, and reducing the regulatory burden on smaller operators leading to lower operating costs. As such, it has been easier for PPPs to deploy service in areas that might be more economically challenging for the larger providers.

However, despite the success of many PPPs, consolidation is happening. Larger groups are now acquiring smaller players to gain scale. In May 2025, Brasil TecPar acquired three regional operators – ALLREDE, Sempre Internet and OnNet. This is in addition to the over 25 acquisitions the operator had already made since 2021. Meanwhile, Giga+Fibra (under the Alloha Fibra group) began 2025 with nearly R$800 million available to acquire more small providers. This move was situated as a bet that sooner or later, consolidation is coming to the ISP landscape.

These moves also reflect the growing pressure of upcoming changes that will make it harder for PPPs to survive independently. Anatel is becoming stricter, beginning with extremely small providers. New rules now require licenses for very small ISPs with fewer than 5,000 subscribers, which were previously exempt. However, the bigger challenge for PPPs across the board likely comes from changes in taxation, as Norma no. 4 is phased out. The change clarifies that fixed broadband access is not a Value Added Service (SVA), and should now be characterized as a Multimedia Communication Service (SCM). This will increase the tax burden on regional operators, which will likely now have to pay additional state taxes in some states. Operators have until January 1st, 2027 to prepare for this change.

Wholesale neutral host networks play an important role in facilitating and sustaining this landscape. To date, all providers have benefited from neutral host networks such as V.tal, FiBrasil, and I-Systems. These companies offer wholesale open-access infrastructure, which allow both large and small ISPs to serve customers without building full infrastructure themselves.

But here too we see consolidation. While many of these neutral host networks were built as joint ventures, ISPs are now showing interest in regaining majority ownership. Telefónica now holds a majority stake in FiBrasil. Meanwhile, news in August suggests that TIM is considering acquiring IHS Towers’ stake in I-Systems. Such a move would make it the full owner of the neutral host network. As the tax differentiation between providing broadband access and operating the underlying fiber infrastructure is phased out, it likely makes owning the underlying fiber network more appealing to fixed broadband providers.

Taken together, these shifts — from rapid growth to slower saturation, from fragmentation to consolidation, and from incentives to tighter regulation — show that Brazil’s fixed broadband market is entering a new, more mature phase. In this next phase, competition shifts from land-grab to service quality. Meanwhile, consolidation seeks scale efficiencies and rural gaps persist. Against this backdrop, network experience — consistency, speed, video and reliability — becomes the key differentiator that we examine in this report.

In this report, Opensignal looks at the real-world fixed broadband experience of our users across Brazil, as well as in the 10 largest cities by population. We measure five aspects of user experience: Consistent Quality, Download Speed, Upload Speed, Video Experience, and Reliability.

In our national comparisons we focus on the providers which are also recognised by Anatel as the “big” providers in the market — Claro, Vivo, Nio (previously Oi) and TIM — which have the largest population coverage. We then include smaller players in our city breakdowns, where they offer significant population coverage and a representative market share.

This report analyzes the end-to-end real-world situation across all users’ plans which includes transport over a provider’s core network and connectivity onto the sites and content delivery networks that host popular services, apps and websites. A user’s fixed broadband experience is also affected by the router they are using. Therefore, broadband providers’ scores vary, despite the use of shared wholesale networks. Our data is filtered to exclude readings from devices connected to Wi-Fi hotspots.