Emnify, a leading provider of connectivity for IoT and M2M devices, has taken a significant step in its expansion in Brazil by acquiring Cinco Telecom, a telecommunications operation belonging to the J. Safra Group.
This acquisition has led Emnify to become an authorized Mobile Virtual Network Operator (MVNO) in Brazil, enabling it to operate mobile communication services in the country, in partnership with Claro Brazil as its home provider.
In the following Guinea Mobile article, we will discuss the key aspects of this acquisition and its significance in the context of the growing IoT industry in Brazil.
Emnify at a glance
Emnify has established itself as a major player in the field of IoT and M2M connectivity. Its platform enables enterprises to connect and manage IoT devices effectively and efficiently.
This acquisition represents a strategic step in its mission to provide global connectivity solutions for growing IoT devices.
Cinco Telecom: a strategic addition
The acquisition of Cinco Telecom, belonging to the J. Safra Group, is a strategic move by Emnify in its expansion in Brazil.
This company was already well positioned in terms of licenses and agreements with Claro, in addition to enjoying a solid reputation in the telecommunications sector in Brazil.
Emnify’s general manager in Brazil, Carlos Campos, highlighted the choice of Cinco Telecom, underlining its robust structure and unblemished track record in complying with Anatel (Brazil’s National Telecommunications Agency) regulations.
Carlos Campos highlighted the importance of this acquisition by stating: “This acquisition gives us the possibility to enter the country with much more speed, quality and with all the strength we expect from this market, which will still grow a lot”.
This statement underlines the importance of Brazil in Emnify’s growth strategy.
IoT Growth Potential in Brazil
The Internet of Things (IoT) is one of the fastest growing sectors in the technology industry, and Brazil is no exception.
Mobile-based IoT connections in Brazil are expected to experience significant growth in the coming years.
Carlos Campos mentioned a study by consulting firm Transforma Insight, which forecasts an increase from 29 million IoT connections (at the end of 2022) to 69 million by the end of 2027, which equates to a compound annual growth rate (CAGR) of 19.1%.
This projected growth is reflected in customer interest in IoT solutions. By 2022, licensed MVNOs will account for more than 60% of IoT market growth.
This suggests that customers are looking for new alternatives and innovative solutions in the IoT space.
Priority market segments
An important question is which market segments Emnify will target as it enters Brazil.
Carlos Campos noted that given Brazil’s logistical peculiarities and public safety challenges, the light and heavy vehicle segments, as well as security, are expected to be the company’s initial focus.
These segments are critical to addressing logistics and security issues in the country.
However, Emnify will not limit itself to these segments; it plans to offer services in other key sectors, such as means of payment, smart cities, healthcare, agribusiness, and urban mobility.
The diversification of its customer portfolio reflects the versatility of Emnify’s IoT solutions.
Emnify’s entry into Latin America
Emnify’s entry into Brazil marks its debut in Latin America. Until this point, the company had been operating in other regions of the world, with funding provided by One Peak to expand its presence in Brazil and other markets.
Its director underlined the importance of the region by mentioning that the United States already accounts for around 20% of the company’s global revenues, despite the fact that Emnify has yet to enter the region.
Emnify’s service offering
Emnify’s main goal is to make it simple for hardware manufacturers and integrators to incorporate IoT connectivity into their projects.
The company advocates the premise that, with a single SIM card, it is possible to create products that connect to different cellular networks in any region of the world.
This offers enterprises centralized control, monitoring and automation of IoT devices on a single platform.
Emnify provides access to over 400 cellular networks in more than 180 countries, with technologies including 2G, 3G, 4G, 5G, LTE-M and NB-IoT.
The company is proud to be the first cloud-native IoT connectivity provider to add Brazil to its growing list of countries with coverage. This translates into a wide range of services and increased operational efficiency.
Emnify’s acquisition of Cinco Telecom marks an exciting milestone in the company’s expansion in Brazil and its entry into the Latin American market.
Brazil is an important focal point due to the expected growth in the IoT sector and positive customer response to licensed MVNOs.
Emnify’s strategy, focused on offering easy-to-integrate IoT solutions, is a response to the growing demand for IoT connectivity in various industries.
With Emnify’s growing presence in Brazil and its ability to address a wide range of market segments, the company is expected to play a key role in the expansion of IoT connectivity in the region and beyond.
Don’t hesitate to contact us right now to get your company on board with this exciting revolution in the telecommunications market. Take advantage of this opportunity to receive personalized advice from our team of experts.