In Brazil, broadband is the only fixed service that has not stopped growing. This phenomenon is sustained by several dozen small operators focused on fiber development. In that great dispersion, at Q2 2020, only two players had exceeded the 300,000 accesses mark: Brisanet and Acon. There is a lot of room to consolidate and, precisely, Acon raised its growth through acquisitions.
In 2015, Acon started business in Brazil through the purchase of Cabo Telecom. Since then it has sealed acquisitions that allowed it to increase its customer base by 84% and its revenues in local currency by 53%. At the end of 2019, the company had a network that exceeded 852,000 homes; 14% more than in 2018. Its growth took place in the inlands of the country and is divided into two main geographical areas: Northeast (Ceará, Río Grande do Norte and Paraibá) and Southeast (Minhas Gerais and Sao Paulo). Regionalization is the key to a recent process of consolidation of the access market in Brazil, driven by local funds. Acon is also investing in infrastructure. In 2019, CAPEX reached 37% of revenues; in 2018 it represented 31%.
Acon operates in Brazil under the trade name “Conexão Fibra” and has organized its assets in the Triple Play Participações holding, a unit that recently was analizing an IPO on the Sao Paulo Stock Exchange. In a conservative valuation, it was estimated that with an IPO it could raise about $250 million.