05/15/2007


Who leads cellular in Brazil?

 

 

The running between Vivo and Tim for the leadership in Brazil put in discussion criterias to define who the leader is. The following board presents 7 indicators selected by Teleco to define this leadership.

 

Leader in
Indicator
Leader 1Q07
Cellulars
Market Share
Vivo
Growth
Net Adds
Tim
Revenue
Net Revenue
Vivo
Revenue per Client
ARPU
Tim
Profit
EBITDA Margin
Telemig/Amaz
Coverage
Population attended
Tim
Quality
Anatel Goals
Telemig/Amaz

Note: CTBC and Sercomtel were not included.

 

Based on this indicators cellular leadership in Brazil in the 1st quarter 2007 (1Q07) :

  • Vivo (Market Share and Revenue)
  • Tim (Growth, ARPU and Coverage)
  • Telemig Celular/Amaz (Profit and Quality)

In 2006 Vivo led in Market Share and Revenue and Tim in Growth, ARPU and Coverage. Telemig/Amaz and Vivo in EBITDA Margin (23.7%) and Oi led in quality. It's following below a analyse of these indicators to the 1Q07.

 

Cellular's Quantity: Market Share and Growth

 

Vivo is the biggest cellular operator of Brazil with 29 million cellulars and market share of 28.42%. It also leads market share in 2 Regions, 11 Federary Units and 28 local areas (DDD). (More details)

 

1Q07
Market
Share
Cellulars
(thousands)
Leader in Market Share
Region
State
Local Area
Vivo
28.42%
29,030
II and III
11
28
Tim
25.77%
26,321
-
7
20
Claro
24.09%
24,608
-
3
5
Oi
13.08%
13,358
I
4
9
Telemig/Amaz
4.65%
4,752
-
2
5
BrT
3.56%
3,636
-
-
-

 

Vivo's leadership has also been threatened by Tim, that led net adds in the quarter and reduced the distance that keeps it apart Vivo from 3.6 million cellulars in 2006 to 2.7 million in 1Q07.

 

 

Oi is also worried about losing leadership in market share in the Region I to Tim. The difference that separates both operators in this region fell from 615 thousand cellulars in 2006 to 319 thousand in the 1Q07.

 

Brt was the leader in percentage growth (7.7%).

 

Revenue and ARPU

 

Vivo was leader in revenue in 1Q07.

 

R$ Thousands
Gross Revenue
Net Revenue
Revenue Share
Vivo
3,964
2,851
29.5%
Tim
3,895
2,843
29.4%
Claro
2,830*
2,155
22.3%
Oi Celular
1,331
1,000
10.3%
Telemig/Amaz
700
432
4.5%
BrT
541
385
4.0%

* Teleco data

 

This leadership has also been threatened by Tim, that exceeded Vivo in service revenue. Tim's services net revenue in 1Q07 was R$ 2,662 thousands and Vivo R$ 2,609 thousands. Vivo keeps its leadership having bigger devices net sales than Tim.

 

Leadership in revenue share Tim has the bigger ARPU presented by the operator.

 

1Q07
ARPU (R$)
MOU
TIM
34.4
89
BrT
33.4
ND
Vivo
30.0
75
ARPU Brazil
29.4
76
Amaz Cel
28.4
78
Telemig
27.6
69
Claro
27.0
64
Oi
22.1
ND

 

 

Profit

 

Telemig/Amazônia Celular was led profit in the 1Q07, with EBITDA Margin and EBIT superior to others. Telemig and Oi Celular were the only operators to present profit in the quarter. Oi Celular's profit is a result of financial revenue of the operator.

 

 

1Q07
EBITDA Margin
EBIT Margin
Profit
Telemig/Amaz
34.6%
16.4%
37
Claro
27.4%
7.8%
ND
Vivo
26.6%
6.5%
(19)
TIM
23.4%
2.9%
(19)
Oi
18.3%
0.4%
46
BrT GSM
1.1%
-23.4%
(53)

 

Claro improved it margins in the 1Q07 exceeding for the first time Vivo and Tim.

 

 

Coverage and Quality

 

Tim, is the only operator in every State of Brazil, is leader in population and attended cities.

 

Operator
Population
Cities
Tim
86%
44%
Claro
78%
42%
Vivo
67%
41%
Oi
39%
14%
Telemig/Amaz
15%
9%
Brasil Telecom
21%
14%

 

 

 

Telemig/Amazônia Celular was leader in attendance quality goals in 1Q07 (more details).

 

1Q07 Attended Goals
Telemig/Amaz 98.0%
Tim 97.9%
BrT GSM 96.0%
Brasil 94.3%
Claro 92.3%
Vivo 91.0%
Oi 79.5%

 

 

You could ask :

  • Who is cellular leader in Brazil?
  • What's the importance of being a leader?
  • Do you agree with the indicators selected by Teleco? Would you suggest another one?

 

Comment.

 

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

 

Please let us know if you authorize the publication of your commentary.

 

Commentaries

 

Workshop
(in portuguese)
Cellular Market Update

 

TELECO CONSULTANCY

Reports

Imagem cortesia FreeDigitalPhotos.net

Telecom, Cellular and Capex

Workshops

Market Update

Regulation in Brazil

Consultancy

Studies and Databases

More Products

EVENTS

More Events

REPORTS

Huawei Whitepaper

Mavam




 

 

 

 

 

Print this Page

Add to favorites Communicate errors