Intelbras may “grab up” significant part of the 5G market after partnering with Qualcomm, analysts say


SAO PAULO – Intelbras (INTB3) announced this Tuesday (24) that it has signed a collaboration agreement with the American Qualcomm to license its fifth-generation mobile services (5G) technology.

According to the company, the initiative aims to meet the demand of operators and internet providers in Brazil, at a time when the imminent auction of frequencies for 5G increases the need to develop the ecosystem of 5G and Wi-Fi 6 devices in the country .

In a statement, Intelbras stated that the agreement provides for the production of 5G FWA solutions, which will provide high quality connectivity, speed and latency similar to fiber optics, without the need for cabling and installation in the last mile (last mile).

“This project encourages the development in Brazil of advanced technologies to foster the implementation of 5G in the country and reinforces Intelbras’ leadership position in the process of reducing the digital divide in the national territory”, wrote Rafael Boeing, investor relations director, in note.

In the assessment of the analysis house Levante, the news is “very positive” for Intelbras and should reflect a positive impact on the company’s share price in the short term.

On Tuesday (24), INTB3 shares had a high of 1%, around 4 pm (Brasília time), traded at R$ 28.01. At the highest of the day, the shares rose 3.9%, to R$ 28.78.

According to Levante, prospects for the company are optimistic, since the company benefits largely from the agreement with Qualcomm, and should capture a significant part of the 5G technology market.

Guide Investimentos also sees the news as positive. “We see the announcement with good eyes for Intelbras, which will be able to offer innovative technology products and even exclusively in Latin America, which we consider an important differential for the company’s positioning, which currently has a diverse product portfolio as competitive advantages. and leadership in various categories,” the analysts write.

According to Guide, 5G technology is one of the main growth opportunities for the sector and for the company.

Itaú BBA writes, in a report, that the partnership will likely increase Intelbras’ portfolio of solutions, mainly for the broadband market, which has been highlighted due to the rapid growth of fiber connections to the home (FTTH).

Analysts, however, say they do not expect a big impact in terms of revenue in the short term, as they believe that most of the demand for these solutions will be in the medium term, as it is an expensive technology compared to the current deployment of FTTH.

The bank maintained its recommendation of performer (above market average) for INTB3 shares and target price of R$28.10 per share.

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