02/16/2009

Vivo x Claro, which one presented the best performance in 2008?

 

 

Vivo is the main operator surpassing Claro (second in the ranking) in market share, revenue and profitability.

 

 

 

Claro, however, presented bigger growth in revenue and cellular base in 2008.

 

 

Growth in 2008	Vivo	Claro
Net Revenue	14.2%	15.4%
Market Share (variation)	-1.06%	0.72%
Cellulars	20.2%	28.1%
Net Adds (thousands)	7,561	8,503

 

 

Comparing the main operational indexes, Vivo takes advantages in ARPU and churn; and Claro in MOU and prepaid (%).

 

Main comparative indexes: Vivo x Claro
Vivo presents advantages of about R$ 4.00 in the month cellular Average Revenue Per User (ARPU) despite having bigger prepaid percentage, when compared with Claro.
Claro's cellulars presented bigger MOU (minutes of Use) when compared with Vivo, what might indicate that Claro have been more aggressive than Vivo in the minutes offer in promotional prices, once Vivo's ARPU is bigger than Claro's.
Vivo presented a reduction in its monthly churn in 4Q08, which reached 2.3%. However, we can't consider this reduction a tendency and because it might get back to growth in 1Q09, as happened in 1Q08.

 

As we can observe, Vivo and Claro presented good performances in 2008. Despite Vivo consolidating itself in the leadership in market and revenue share, Claro grew more than Vivo and might threaten this operator.

 

Both operators have licenses to work in the whole country and they are, at the moment, competing for the leadership in 3G (in Jan/09 Vivo attended 316 cities and Claro reached 293).

 

These operators might compete, for the next years, for the cellular leadership in Brazil.

 

You could ask:

• Will Claro overcome Vivo in market share? When?
• How aill the financial crisis affect this climate?
• Will Oi threaten the leadership of Claro and Vivo? What about Tim?
• What benefits clients might expect from the cellular competition?

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

 

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