06/15/2009


Oi leads growth in May

 

According to preliminary data released by Anatel, Brazil presented in May/2009 superior Net Adds if compared to the ones presented in May/2009.

 

 

Note: Anatel's preliminary data

 

This is a sign that the cellular market is continues to be heated in Brazil, despite the crisis. The Net Adds accumulated in the year count 6.9 million cellulars and 26.9 million in the last 12 months.

 

The net add distribution between operators in May/09 brings some surprises.

 

Note: Anatel's preliminary data

 

If these data are confirmed by Anatel, then for the first time a operator that doesn't subsidize the retail appliances (Oi) will surpass others that make use of this practice.

 

Oi's performance in the BrT's region, where the company presented net adds of 698 thousand cellulars in May, contributed for these results. In this month, Oi launched its brand in this region with more aggressive service plans, mainly for the prepaid segment. Oi had had negative net adds in March (-54 thousand) and April (-202 thousand) in this region.

 

On May 19th, Oi had announced the sale, in less than one month, of more than 600 thousand Oi chips in BrT's region. The promotion for the launching of its brand concedes credits for prepaid until R$ 600 per month for the clients that accomplish with refills of R$ 1.00.

 

Indeed, in May/09 Oi conquered 60% of the total of 1.16 million net adds in BrT's region (Region II), in its majority prepaid. The prepaid cellulars represented 92.4% of the net adds in this region. This result contributed to increase prepaid stake in the Brazilian total, which raised from 81.60% in Apr/09 to 81.75% in May/09.

 

Vivo and Claro are executing equal strategies with almost the same results in the accumulated in the year.

 

Note: Anatel's preliminary data

 

Tim, which is recovering from the base cleaning (of about 1 million cellulars) carried out in the first quarter (1Q09), presented a good performance in May, even though it's still behind other operators when considered the accumulated in the year.

 

With the results of May, Oi increased its market share to 21.14% and decreased the distance to Tim to 3.8 million cellulars.

 

Note: Anatel's preliminary data

 

 

You could ask:

  • What will be cellular net adds in 2009 in Brazil?
  • Is crisis affecting cellular growth in Brazil?
  • Will Oi surpass Tim in 2009?
  • What's the explanation for Claro performance, which presented in May smaller net adds in comparison with other operators?

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