15/08/2006


Brazil is the 6th Cellular Density in Latin America

 

Brazil is the sixth country in cellular density of Latin America, without considering Caribbean.

 

Note: Estimated by Teleco in the 2Q06

 

On the following figure, the seven countries are the bigger market of cellulars in Latin America, corresponding 90% of its cellulars (2Q06).

 

2Q06 (Million)
Cellulars
Market Share
Brazil
91.8
35.4%
Mexico
51.6
19.9%
Colombia
28.0
10.8%
Argentina
26.0
10.0%
Venezuela
15.6
6.0%
Chile
12.1
4.7%
Ecuador
7.7
3.0%
Others
26.5
10.2%
Latin America
259.1
100%

Source: Operators, Regulatory Entities and Teleco's estimates.

 

In Others are included Central America countries with 13.1 million cellulars (2Q06) and South America countries.

 

Brazil is the bigger market but it presents density of 49 cell/100 inhab. lesser than the other countries. Brazil's density is low, even though only considering São Paulo State, which in June/06 had 22.5 million cellulars and density of 55 cell/100 inhab.

 

Although low density, Brazil was the country that less grew in the 1st semester of 2006 (6.4%) between these seven countries. The growth was lesser even to Chile that has density of 74 cell/100 inhab and grew 7.4%. Without considering decrease of 1.8 million cellulars promoted by Vivo in June/06, Brazil's growth still would be just 8.6%.

 

The strategy adopted by cellular operators in Brazil in 2006 of improving Revenue reducing cell phone subsidy level, mainly pre-paid that has been pointed as one of the causes of cellular growth decreasing in Brazil, observed from the 2nd semester of 2005. In Fact, pre-paid percentage is lesser than what was observed in most of the Latin America Countries, including Chile (81.9%) and Argentina (91.2%).

 

Are the strategies of these operators different from the strategies in other Latin America coutries? It doesn't seem to be the case.

 

The four bigger cellular operators of Brazil are between the ten greaters of Latin America, Claro and Vivo belong to América Móvil and Telefonica Móviles. These two operators groups control 68% of the Latin America cellulars (2Q06) and are present in the seven mentioned countries.

 

 

Operator
Group
Country
Cellulars
1
Telcel
A. Móvil
Mexico
39,150
2
Vivo
Telefonica
Brazil
28,525
3
Tim
Telecom Italia
Brazil
22,338
4
Claro
A. Móvil
Brazil
20,949
5
Comcel
A. Móvil
Colombia
17,970
6
Oi
Telemar
Brazil
12,034
7
Movistar
Telefonica
Argentina
9,325
8
CTI
A. Móvil
Argentina
8,054
9
Movistar
Telefonica
Colombia
7,474
10
Movistar
Telefonica
Venezuela
7,065

 

Looking at the table above you could ask:

  • Why the density of cellulars in Brazil are lesser than the other Latin America countries?
  • Telefonica's decision to implant GSM networks in Brazil and Venezuela consolidated GSM as dominant technology in the region. How would this decision affect the cellular growth in Brazil and Latin America?
  • 3G networks are being implanted in most countries of Europe that present density in band 80 to 100 cell/100 inhab. When will have the implantation of 3G in Latin America? And in Brazil ?
  • How MVNO can affect the cellular density growth in Latin America?

 

Comment.

 

To send us a commentary click on: teleco@teleco.com.br

 

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