07/29/2007


The Brazil where everyone has a cell phone

 

At the end of 2007, there were already 47 countries in the world with density of more than 100 cell/100 inhab. In Latin America, Argentina is one of those countries.

 

Brazil ended the 2nd quarter of 2008 (2Q08) with a density of about 70 cell/100 inhab. Some local areas of cellular telephony (same Area Code) now with densities coming from these countries with more than 100 cell/100 inhab.

 

The five local areas with the highest density of Brazil concentrated in 2Q08 22.6% of the country's cellulars and had an average density of 96.3 cell/100 inhab.

 

Five local areas more dense in 2Q08

 

 

Area Code
Main Cities
Density
Cellulars
(thousands)
Growth in 2008
71
Salvador
119,96
3,937
9.9%
61
Brasília
106,84
3,525
8.9%
31
Belo Horizonte
97.68
6,680
7.9%
51
Porto Alegre
90.34
5,028
6.6%
21
Rio de Janeiro
89.06
10,920
8.8%
Total areas more denses
96.30
30,090
8.4%
Total Brazil
69.52
133,169
10.1%

 

 

The tendency, when countries reach densities higher than 100 cell/100 inhab, is the decrease in the rate of growth. The average growth of the main European countries which have densities higher than 100 cell/100 inhab. in 2007 was around 12% (Germany, Spain, Italy, Portugal and United Kingdom).

 

However, these 5 most dense areas of Brazil grew 8.4% in first 6 months of 2008, slightly below average in Brazil (10.1%). This is another indicator that the growth of cellular in Brazil continues accelerated.

 

It is important to remember that a density higher than 100 cells/100 inhabitants., not necessarily indicates that they all have a cellphone. Many people have 2 or up to 3 cellular assets, mainly in countries with large amount of pre-paid cell phones and with predominance of GSM (Chips). Moreover, the research has shown that the percentage of cell phone users in Brazil is larger than those that have a cell phone. According to the search of ICT Household NIC.Br held in Sep/07, 51% had mobile phone and 66% used the phone.

 

What are the local operators leaders in these areas?

 

Vivo was the first operator to come into operation in these 5 local areas (Band A). It maintains the leadership, but in only two of these areas (51 and 21).

 

51
Band
2007
2Q08
Vivo
A
42.6%
42.0%
Claro
B
30.3%
30.1%
Tim
D
16.3%
16.3%
BrT
E
10.8%
11.7%

 

21
Band
2007
2Q08
Vivo
A
31.9%
31.2%
Claro
B
28.9%
28.5%
Oi
D
23.5%
25.2%
Tim
E
15.8%
15.2%

 

 

Note that in these two areas the position in local market share of each operator is the same in the order of entry into operation on the market (1st The Band A, 2nd Band B, 3rd Band D and 4th Band E). In 2008 the market leaders (Vivo and Claro) showed a small loss of market share to the other 2 operators.

 

In other local areas on the order of market entry does not match the position in more market share. Oi is the leader in market share in local areas 71 (Salvador) and 31 (Belo Horizonte).

 

71
Band
2007
2Q08
Oi
D
33.2%
37.0%
Tim
B
25.6%
23.9%
Claro
E
23.0%
21.6%
Vivo
A
18.2%
17.5%

 

It should be noted that Oi is expanding its local leadership in these two areas. Already Vivo, Band A in the area 71 (Salvador) occupies the 4th position in market share.

 

31
Band
2007
2Q08
Oi
D
31.0%
33.4%
Vivo
A
28.1%
27.0%
Tim
B
28.4%
26.1%
Claro
E
12.6%
13.5%

 

Claro is leader in the area 61 (Brasilia), but Brasil Telecom is the operator which has gained market share and is approaching Vivo and Claro.

 

 

61
Band
2007
2Q08
Claro
B
34.7%
33.2%
Vivo
A
28.4%
27.3%
BrT
E
21.3%
23.4%
Tim
D
15.6%
16.1%

 

 

You could ask:

  • When will Brazil reach density of 100 cell/ 100 inhab.?
  • What will change when this happen?
  • Which are the operators prepared to this?
  • The entrance of Unicel and Oi in São Paulo can lead area 11 with density more than 100 cell/100 inhab?
  • And What about the other areas of São Paulo (12, 13, .. etc).

 

 

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

 

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