Claro in Talks to Acquire Desktop, Expand Fiber Reach in Brazil

Following a report claiming that Claro is in advanced talks to acquire Desktop, one of the country’s largest independent fiber broadband providers, the latter company confirmed that preliminary, non-binding discussions have taken place.

In a statement to the market, Bruno Silva, Chief Financial, M&A and Investor Relations Officer, Desktop, said that while it “continuously evaluates opportunities that may contribute to the development of its business and the creation of value,” no agreement has been reached regarding the transaction’s price, structure, or terms. The company emphasized its commitment to keeping shareholders and regulators informed in compliance with applicable laws.

If the deal materializes, it would represent the first acquisition of a regional ISP by one of Brazil’s Big Three telecom operators: Claro, Vivo (Telefónica Brasil), and TIM. According to Brazil Journal, the potential acquisition would involve 100% of Desktop’s capital and could result in the company’s delisting. However, as in many preliminary negotiations of this kind, there is no guarantee that an agreement will be reached.

Strategic Context and Market Impact

Claro, a subsidiary of Mexico’s América Móvil, has been expanding its fiber footprint aggressively. Last year, the company announced the construction of 66,576km of high-capacity transport networks across Brazil using optical fiber backhaul technology. The move aligns with broader trends in Latin America, where fiber-to-the-home (FTTH) has become the dominant broadband technology, surpassing cable and DSL connections, MBN reports.

According to S&P Global, FTTH became the leading fixed broadband platform across the region in 2022, with Brazil, Mexico, Colombia, Argentina, and Peru driving penetration growth in 2023. Between January and May 2025 alone, FTTH accesses in Brazil rose 7.2% year-on-year, with the country’s north and northeast leading growth at over 10%.

In this increasingly competitive environment, regional ISPs like Brisanet, Giga Mais Fibra, Vero, and Desktop have captured over 40% of total broadband connections, challenging the dominance of national players, reports the National Telecommunications Agency of Brazil (ANATEL). Still, Claro remains the market leader in fixed broadband with 19.7% of accesses, followed by Vivo (14.7%) and Oi (7.5%).

If Claro’s acquisition of Desktop proceeds, its market share could climb to about 21.9%, further cementing its lead and expanding its dominance in the interior of São Paulo, Desktop’s core market.

Beyond Brazil, América Móvil has also been active in regional M&A efforts. This week, Chile’s Empresa Nacional de Telecomunicaciones (Entel) confirmed that, together with América Móvil, it submitted a non-binding offer for Telefónica’s operations in Chile, pending due diligence and regulatory review, as reports MBN.

Analysts expect further consolidation in Brazil’s fragmented broadband sector, with companies like Aloha (EB Capital) and Vero (Vinci and Warburg Pincus) reportedly exploring potential sales. Fitch Ratings noted earlier this year that Brazil’s telecom sector maintains strong credit trends and financial flexibility, supported by steady demand growth and declining capex requirements.