08/11/2006


Has Claro stopped to fight for the 2nd place?

 

Claro finished the 3rd quarter of 2006 (3Q06) with 22.2 thousands cellulars and 23.13% market share. The difference that separates it from Tim increased, however from 1.4 million cellulars in the 2Q06 to 1.9 million in the 3Q06.

 

 

 

After initiating 2006 with low growth (more details), Claro has sped up its rhythm in March and has been decreasing in the difference from Tim in the 2Q06. This trend inverted in the 3Q06, when Tim presented Net Add of 1.7 million cellulars against 1.2 million of Claro.

 

In Sep/06 Claro presented Net Add of 303 thousands cellulars against 495 thousands of Tim ( more details). Claro presented negative growth in the area 61 and in Rio Grande do Sul. Tim presented a bigger growth than Claro in the Northeast States , Rio de Janeiro, São Paulo and Paraná. Claro surpassed Tim in number of States with: Bahia, Minas Gerais, Goiás and Tocantins.

 

This lesser growth of Claro in the 3Q06 can, however, not be because of a deliberate reduction of the Operator's growth rhythm, but because of the Churn increasing. The sales continues high but the loss of customers increased the falling of Net Add.

 

The monthly churn of Claro increased from 2.4% in the 2Q06 to 3.0% in the 3Q06. This growth resulted in additional cancellations, around 500 thousand cellulars in the trimester. Without it, the net add of Claro would be closer to Tim in the 3Q06. The increasing of churn, if isn't because of the cleaning base in the trimester, is an indicator of problems of the operator that has been having the worse performance in the attendance of the quality goals in 2006 (More details ).

 

 

Net Income

 

Claro improved its Net Income indicators in the 3Q06 ( More details )

 

 

 

Claro's ARPU increased from R$ 24 in the 2Q06 to R$ 27 in the 3Q06. This growth is, in most part, a change in the rules of cellular telephony interconnection stablished by Anatel since July 14th, finishing with Bill & keep partial and promoting the full charge of network minutes use. Even Though, Claro's ARPU continues being one of the lowest in the market, being superior to OI (R$ 22.4). Claro continues being the operator with bigger percentage of pre-paid ( 83.3%).

 

 

Looking at the text above you could ask:

 

  • Did Claro stop to fight for the 2nd place? Or it must come back to growing in the same rhythim of Tim in the 4Q06 ?
  • Did Claro decide to prioritize the Net Income against the growth? When Claro will present positive EBIT ?
  • Will Claro improve its service's quality? And decrease the churn? Or it will be good for the company 3% of churn, same value presented by Telcel in Mexico?
  • Will Claro's ARPU increase in the 4Q06?
  • Did Claro promote a cleaning of clients base in the 3Q06? And the other operators?

 

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