11/17/2008


Claro enters to the group of leaders in 3Q08

 

Note: Vivo includes Telemig and Oi includes Amazônia.

 

Teleco monitors, since 2007, cellular operators performance in Brazil through 7 indicators presented in the following table with their respectives leader operators in the 3 quarters of 2008.

 

 

Leader in
Indicator
Leader in 1Q08
Leader in 2Q08
Leader in 3Q08
Celulares
Market Share
Vivo
Vivo
Vivo
Growth
Net Adds
Oi
Vivo
Claro
Coverage
Covered Population
TIM
TIM
Tim/Claro
Revenue for Client
ARPU
BrT
Tim
Tim
Revenue
Net Revenue
Vivo
Vivo
Vivo
Profitability
EBITDA Margin
Vivo
Oi
Oi
Quality
Anatel's Goals
Vivo
Vivo
Vivo

Note: The order doesn't reflect the indicators importance. CTBC and Sercomtel weren't included. Vivo includes Telemig and Oi includes Amazônia.

 

 

The main change in the leaders box in 3Q08 happened with Claro which took the leadership in net adds in 3Q08 and in the accumulated in the year.

 

Claro also got to share with Tim the leadership in coverage (covered population). In the other indicators there were no changes in the leadership in comparison with 2Q08.

 

The following presents a detailed analysis of theses results.

 

 

Growth: Claro reaches leadership in 3Q08

 

Claro was the operator that counted the biggest number of net adds in 3Q08 (2,556 thousand cellulars), becoming leader not only in the quarter but also in the accumulated in the year (5,440 thousand cellulars).

 

 

Note: Vivo includes Telemig and Oi includes Amazônia from 1Q07 to 1Q08.

 

Claro presented in the quarter a superior performance in comparison with the presented by other operators. Oi had its performance damaged by the Amazônia Celular's cleaning base, what resulted in net adds of -255 thousand cellulars in September/08. (more details)

 

 

Market Share: Vivo keeps leadership

 

Vivo is the biggest operator in Brazil, counting 42.3 million cellulars. The company is the leader in market share in two regions, 12 Federacy Units (UF) and 31 of the 67 Area Codes (DDD).

 

 
Market
Share
Cellulars
(thousands)
Leader in Market Share 3Q08
Region
UF*
DDD
1Q08
2Q08
3Q08
1Q08
2Q08
3Q08
Vivo
30.5%
30.4% 30.0%
38,309
40,435 42,277
II and III
12
31
Claro
24.8%
24.9% 25.3%
31,182
33,113 35,668
-
3
9
Tim
25.9%
25.4% 25.0%
32,548
33,829 35,220
-
4
16
Oi
14.9%
15.2% 15.5%
18,737
20,299 21,864
I
8
11
BrT
3.6%
3.8% 3.7%
4,578
5,015 5,246
-
-
-

Note: Vivo includes Telemig and Oi includes Amazônia in 1Q08 and in 1Q07.* Federacy Unit

 

The big news in the quarter was Claro overcoming Tim and reach the second position in the cellular market share ranking in Brazil (more details).

 

 

 

 

Revenue Share : Vivo leads and grows in revenue share

 

Vivo keeps leadership in revenue with a good margin to Tim which is in the second position.

 

3Q08
Revenue Share (millions)
Revenue Share %
1Q08
2Q08
3Q08
Vivo
4,078
33.3%
32.4%
33.0%
Tim
3,358
27.1%
27.3%
27.2%
Claro
2,945
23.9%
24.4%
23.8%
Oi
1,450
11.4%
11.5%
11.7%
BrT
481
3.9%
4.0%
3.9%

Note: Vivo includes Telemig and Oi includes Amazônia.

 

 

Quality: Vivo confirms its leadership

 

In 3Q08, Vivo confirmed its leadership in quality in 2008, strengthening its image as "quality of signal".

 

Achieved Goals
1Q08
2Q08
3Q08
Vivo
99.0%
99.7%
99.6%
BrT
98.5%
99.0%
99.5%
Claro
98.3%
98.8%
98.5%
Tim
92.5%
91.5%
92.3%
Oi
86.4%
84.8%
81.8%

Note: Vivo includes Telemig and Oi includes Amazônia.

 

Tim and BrT improved their performances in 3Q08, while other operators presented a fall in the total of achieved goals.

 

 

ARPU: Tim keeps leadership

 

In 3Q08, Tim kept its leadership in ARPU (R$ 29.7).

ARPU (R$) 1Q08 2Q08 3Q08
Tim
29.5
29.8
29.7
Vivo
29.5
28.8
29.4
BrT
29.8
29.2
28.8
Claro
26.0
26.0
25.0
Oi
21.7
22.0
21.4

Note: Vivo includes Telemig and Oi includes Amazônia.

 

Vivo improved its ARPU (R$ 29.4) and surpassed BrT (R$ 28.8).

 

Brazilian ARPU in 3Q08 was of R$ 27.1 with a small drop in comparison with 2Q08 (R$ 27.2). The quantity of minutes of use monthly per user (MOU) raised from 84 minutes in 1Q08 to 94 minutes in 2Q08 and 96 minutes in 3Q08, result of the promotions for calls between cellulars in the same operator. (more details)

 

TIM and Claro followed this trend in 3Q08, but Vivo presented growth of ARPU in relation to 2Q08 (from R$ 28.8 to R$ 29.4) and fall of MOU (from 94 to 89 minutes).

 

 

Coverage: Tim and Claro tied in 3Q08

 

Tim and Claro were tied in the coverage leadership, covering 87% of the population in Brazil.

 

Operator
Population
Cities
1Q08
2Q08
3Q08
1Q08
2Q08
3Q08
Tim
87%
87%
87%
48%
49%
50%
Claro
80%
81%
87%
47%
48%
53%
Vivo
76%
77%
83%
50%
51%
54%
Oi
41%
41%
61%
18%
18%
24%
BrT
21%
21%
21%
15%
15%
17%

Note: Vivo includes Telemig and Oi includes Amazônia in 1Q08 and in 1Q07.

 

The leadership in covered cities was gotten by Vivo.

 

 

Profitability: Oi leads

 

Oi Móvel remained as leader in EBITDA margin in 3Q08.

 

3Q08
EBITDA Margin %
EBITDA Margin %
Profit (loss)
1Q08
2Q08
3Q08
3Q08
3Q08
Oi
33.3%
34.6%
33.2%
17.1%
155
Vivo
35.4%
23.2%
32.3%
13.5%
(60)
Claro
29.8%
22.8%
22.9%
3.5%
-
Tim
17.9%
20.0%
23.8%
5.4%
23
BrT
3.5%
6.4%
14.7%
-9.6%
(26)

Note: Vivo includes Telemig and Oi includes Amazônia. Amazônia was estimated by Teleco in 1Q08.

 

Oi also presented the best result for EBIT margin and net profit.

 

From the indicators analysis, we can conclude that Claro was highlighted in 3Q08, reached the leadership in net adds and coverage and surpassed Tim in market share.

 

You could ask:

  • Will the leaders box of 3Q08 repeat in the last semester of the year?
  • Can Oi's entrance in São Paulo change this climate? What about 3G and portability?
  • What big competitions will be carried out in the end of 2008?

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