03/15/2010


Vivo is the leader in 6 of the indicators in 2009

 

Vivo consolidated its leadership in the Brazilian mobile market by conquering the leadership in 6 of the 7 indicators used by Teleco in the 4th quarter (4Q09) and in 2009.

 

 

 

Vivo kept the leadership in market share, revenue, profitability, quality and growth. The company also conquered the leadership in coverage in the quarter. Tim kept the leadership in ARPU.

 

Leadership in
Indicators
Leader in 2008
Leader in 1Q09
Leader in 2Q09
Leader in 3Q09
Leader in 4Q09
Leader in 2009
Mobile Accesses
Market Share
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Growth
Net Adds
Claro
Oi
Oi
Vivo
Vivo
Vivo
Revenue
Net Revenue
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Revenue per Client
ARPU
Tim
Vivo
Tim
Tim
Tim
Tim
Profitability
EBITDA Margin
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Quality
Anatel's Targets
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Coverage
Covered Population
Claro
Claro
Claro
Claro
Vivo
Vivo

Note: The order doesn't show the importance of the indicators. CTBC and Sercomtel weren't included. Oi includes BrT.

 

Since 2007 Teleco keeps track of mobile operators' performance in Brazil which is measured through these 7 indicators. The following presents the results for each one of these indicators.

 

 

Market Share: Vivo amplifies leadership in 4Q09

 

Vivo, biggest mobile operator in Brazil, closed 2009 with 51.7 million mobile accesses and its market share reached 29.8%.

 

 

 

 

Vivo and Claro gained market share in the 4th quarter while Tim and Oi lost.

 

 

-
4Q08
1Q09
2Q09
3Q09
4Q09
p.p. (Quarter)
Vivo
29.84%
29.70%
29.33%
29.40%
29.75%
0.35%
Claro
25.71%
25.76%
25.36%
25.45%
25.52%
0.07%
TIM
24.17%
23.50%
23.71%
23.85%
23.63%
-0.22%
Oi
19.91%
20.67%
21.22%
20.93%
20.6%
-0.32%

 

 

Oi was the only operator to gain market share in the year due to its performance in São Paulo where the company grew 167% in the year. However, Oi lost market share in the 2nd quarter due to the low performance gotten in other region.

 

Vivo is the leader in market share in 2 of the 3 regions, in 12 of the 27 Brazilian states and in 28 of the 57 local areas (area code). Oi is the leader in 1 region, 5 states and 8 local areas.

 

 

 
Leader in Market Share 2009
Region
State
Area Code
Vivo
II and III
12
28
Claro
-
4
13
Tim
-
6
18
Oi
I
5
8

 

In 4Q09, Tim lost for Claro the leadership in Area Code 86 (Piauí).

 

 

Growth: Vivo consolidates its leadership

 

Vivo conquered the leadership in net adds in 3Q09, 4Q09 and in 2009. Churn, lower than other operators', and the focus in quality are Vivo's strategies to this achievement.

 

Oi, led mobile growth in 1Q09 and in 2Q09, but lost its strength in Regions I and II along the following quarters.

 

 

 

 

Revenue Share: Vivo amplifies its advantage over Tim

 

In 4Q09, Vivo amplified its advantage in revenue share over Tim (second in ranking)

 

 

Revenue Share
1Q09
2Q09
3Q09
4Q09
Vivo
33.8%
31.7%
31.4%
32.4%
Tim
25.3%
26.6%
26.2%
25.5%
Claro
23.5%
23.7%
23.7%
23.9%
Oi
13.2%
13.8%
14.5%
-

 

 

Oi, due to the beginning of its operations in São Paulo, and Claro presented the highest revenue growths in the year. Tim presented reduction.

 

 

Revenue Share (millions)
2008
2009
Growth
Vivo
15,819
16,363
3.4%
Tim
13,147
13,058
-0.7%
Claro
11,528
12,016
4.2%
Oi
5,208
-
-

 

 

ARPU: Tim kept the leadership in 4Q09

 

Tim kept its leadership in ARPU, amplifying its advantage over Vivo in 4Q09.

 

ARPU (R$)
1Q09
2Q09
3Q09
4Q09
2009
Tim
26.0
26.6
26.5
27.0
26.5
Vivo
27.0
26.3
26.4
26.1
26.5
Claro
23.0
23.0
23.0
22.0
22.8
Oi
21.1
21.0
22.2
22.5
-

Note: Oi includes BrT.

 

In the end of the year, Tim and Vivo were tied in ARPU. Tim gained the first position because managed to be the leader in more quarters.

 

Brazilian ARPU presented a slight recovery in this quarter. Vivo was the leader in minutes of use per client (MOU) with 119 minutes, followed by Tim and Claro with 99 and 93 minutes respectively. Oi doesn't release this indicator (more details).

 

 

Profitability: Vivo's EBITDA margin reached 32.7%

 

Vivo presented the best profitability. The company led the EBITDA margin in all the quarters. In the year Vivo's EBIT margin and profit were superior than other operators'.

 

 

-
EBITDA Margin
EBIT 2009 Margin
Profit
(R$ millions)
2009
1Q09
2Q09
3Q09
4Q09
2009
Vivo
29.9%
30.4%
34.4%
32.7%
31.9%
12.0%
858
Tim
20.2%
22.3%
22.7%
28.2%
23.5%
3.8%
232
Claro
25.6%
24.8%
22.0%
24.5%
24.2%
4.0%
-
Oi
23.6%
19.7%
30.5%
-
-
-
-

 

 

Quality: Vivo continues to lead

 

Vivo conquered the leadership in quality by accomplishing Anatel's quality targets since the beginning of 2008 and never losing it.

 

Accomplished Targets
1Q09
2Q09
3Q09
4Q09
2009
Vivo
99.9%
99.9%
99.3%
99.5%
99.7%
Tim
95.7%
98.9%
95.8%
97.3%
96.9%
Claro
88.0%
95.1%
89.1%
98.5%
92.3%
Oi
91.4%
83.9%
82.7%
83.0%
87,3%

 

 

Claro and Tim improved their performance in 4Q09.

 

 

Coverage: Vivo reaches leadership

 

Vivo got the leadership in coverage after the revision of the rules to define coverage. The revision was carried out in the end of 2009 by Anatel (more details).

 

 

Operator Covered Cities Covered Population
Vivo* 3,478 89.0%
Claro* 3,346 88.8%
Tim** 2,922 88.2%
Oi** 2,516 84.2%
CTBC* 87 1.5%
Aeiou* 5 7.6%
Sercomtel* 2 0.3%

Source: Anatel

*Coverage reviewed according to new rules established by Anatel.

**Number of cities covered by Tim and Oi can be overestimated counting cities where the service isn't yet available.

 

 

You could ask:

  • Will Vivo continue to be the leader in all these indicators in 2010?
  • Will Tim keep its leadership in ARPU?
  • What about Oi and Claro? Will these companies lead any indicator?
  • Should any other indicator be added to this analysis in 2010?

 

Send us your commentary!

Click on: teleco@teleco.com.br

Please let us know if you authorize the publication of your commentary.

 

Note: The opinions expressed in the published articles in this section are their authors' responsibility.

 

 

TELECO CONSULTANCY

Reports

Imagem cortesia FreeDigitalPhotos.net

Telecom, Cellular and Capex

Workshops

Market Update

Latin America

Regulation in Brazil

Consultancy

Studies and Databases

More Products

EVENTS

More Events

REPORTS

Huawei Whitepaper

Mavam




 

 

 

 

 

Print this Page

Send this Page

Add to favorites Communicate errors