Telcomp warns of barriers slowing Brazil's IoT market growth

The Brazilian Internet of Things (IoT) and Machine-to-Machine (M2M) market is experiencing constrained growth due to regulatory hurdles and high competition barriers, according to Telcomp. An industry study by Pezco Economics presented to Anatel indicates that while machine connections account for approximately one-fifth of mobile accesses in Brazil, the density of IoT devices per inhabitant remains below the OECD average.

Key obstacles identified include high costs associated with switching network providers once devices are deployed. For instance, migrating 10,000 devices could cost up to R$ 1 million due to logistics and SIM card replacement expenses. The study also highlights regulatory uncertainties, such as the lack of regulation for IoT Mobile Virtual Network Operators (MVNOs), exclusivity clauses among major carriers, and disproportionate penalties for permanent roaming.

As of mid-2026, Brazil recorded approximately 58.8 million machine accesses. Industry representatives are calling for adjustments to competition rules to foster productivity and prevent legal insecurity within the sector.