02/09/2009

Will Claro lead cellular growth in 2009?

 

Claro led cellular growth in Brazil in 2007 and 2008 with net adds of 6.1 and 8.5 million cellulars respectively.

 

 

 

 

Will Claro repeat this performance, and lead cellular growth in 2009?

 

This won't be an easy task.

 

Oi/BrT and Vivo might be the main competitors to Claro in this dispute. Oi relies on São Paulo's market and might adopt a more aggressive cellular growth strategy in this BrT's region. Vivo, is expanding its coverage area in the Northeast.

 

Tim, which was Claro's big competitor in 2007, lost its strength in 2008 and still didn't show signs that will return with full power in this competition.

 

However, Claro comes from an ascending trajectory. In 2008, it reached the second position in market share and strengthened its image with an aggressive strategy for 3G implementation.

 

Claro's cellulars grew 28.1% in 2008 and the net revenue 15.4%. This growth was gotten by keeping consistent results in the main indicators.

 

 

Comparative of the main indicators: Claro x Brazilian average
Prepaid stake (%) in Claro presented an evolution which was the opposite to the Brazilian average. In Claro, it had been in constant fall since 1Q07, going from 82.5% to 79.8% by the end of 2008. On the other hand, Brazilian average grew from 80.4% to 81.5% in the period. This is an indicator that, in Claro, postpaid cellulars number is growing more than prepaid.
Despite being high, churn remains near the Brazilian average.   The same observation goes to ARPU and MOU.
About profitability, which is measured by the EBITDA Margin, Claro presents results near to the Brazilian average.

 

Claro led cellular growth in Brazil in 2007 and 2008 without sacrificing its performance in the main operational indicators (ARPU, MOU, Churn) and financial economic (EBITDA Margin). It qualifies the company as a strong candidate to repeat its results in 2009.

 

You could ask:

• Who will lead cellular growth in Brazil in 2009?
• How the financial crisis can affect this climate?
• Will Vivo remains aggressive in clients acquisition and retention in order to keep leadership?
• Will Oi keep the strategies that were successful until now?
• Which operator will gain more by the arrival of portability in Rio de Janeiro and São Paulo?

• How will the price of devices affect the competition?

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

 

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