Which will be Claro's strategy in 2011?
In 2010, Claro Brasil presented increase of 16.3% in its cellular base (one of the biggest growths among the companies that form América Móvil) kept its mobile market share and ended the year with 51.6 million mobile accesses.
However, these good results are threatened by TIM's performance. TIM reduced the difference which separates the company from Claro from Claro 3.2 million in 2009 to 610 thousand mobile accesses in 2010.
Claro will have difficulties many difficulties in order to avoid losing the 2nd position in the mobile market share ranking inside Brazil in the first quarter of 2011. TIM's growth happens mainly in prepaid, segment in which Claro has presented low growth.
TIM overtook Claro in prepaid market share in Sep/10 and opened an advantage of 2.2 million mobile accesses in this segment in Dec/10.
Claro stayed in the 4th position in prepaid net adds in November and December/2010, behind TIM, Vivo and Oi.
Claro's low MOU (minutes of use by client) in 4Q10 (96 minutes) is one indicator that its plans are less aggressive than TIM's and Vivo's.
In 4Q10, Claro chose to focus its efforts in postpaid segment conquering the leadership in net adds in the quarter, with share of more than 50% of the net adds.
However, the growth in postpaid wasn't enough to improve Claro's ARPU. It was the lowest of Brazil and dropped from R$ 22 in 4Q09 to R$ 19 in 3Q10 and R$ 18 in 4Q10.
Claro's net revenue increased 2.2% in the year, but fell 0.2% in 4Q10, if compared with the same period last year. This growth was smaller than the value presented by the fixed operator owned by the same group in Brazil (Embratel), which surpassed Claro in revenue in 2010.
The growth of 21.7% in Claro's data revenue in 2010, wasn't enough to make up for the drop in voice revenue.
Claro has conditions to accelerate the growth of its data revenue. The company has the biggest base of 3G handsets, with market share of 46.7% in Dec/10. 13.6% of Claro's accesses via handsets are 3G. The company needs to grow also in data terminals. It's third in market share in this segment, with 23.77% in 2010.
You could ask:
- Will Claro launch more aggressive plans in prepaid in order to compete with TIM and avoid losing the 2nd position in market share?
- Will Claro invest in data terminals to increase its data revenue?
- Will the company increase the number of cities covered by 3G?
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