03/10/2011


Vivo and TIM were the leaders in 4Q10

 

Vivo conquered the leadership in five indicators in 4Q10 and TIM led in two.

 

 

 

 

Indicator
Leader in
2009
1Q10
2Q10
3Q10
4Q10
2010
Mobile Accesses
Market Share
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Growth
Net Adds
Vivo
Vivo
TIM
TIM
TIM
TIM
Revenue
Net Revenue
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo
Revenue per Client
ARPU
TIM
Vivo
Vivo
Vivo
Vivo
Vivo
Profitability
EBITDA Margin
Vivo
Oi
Oi
Oi
Vivo
Oi
Quality
Anatel's Targets
Vivo
Vivo
Vivo
TIM
TIM
Vivo
Coverage
Covered Population
Vivo
Vivo
Vivo
Vivo
Vivo
Vivo

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

 

Vivo, which in 2009 led in 6 from the 7 indicators, lost the leadership in growth and profitability in 2010, but conquered the leadership in ARPU. In 4Q10, particularly, Vivo was overtaken by TIM in quality.

 

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 leads and Tim is the only company to gain market share

 

Vivo, the biggest mobile operators in Brazil, ended 2010 with 60.8 million mobile accesses and market share of 29.7%. The loss of 0.43 percentage points (p.p.) in 4Q10 took the market share gains gotten in the first semester. Vivo ended the year with -0.04 percentage points less if compared with 2009.

 

 

 

 

Tim was the only operator to win market share in 2010 (and in 4Q10) decreasing the distance which separates the company from Claro to 0.3 p.p.. Oi got the biggest lost in market share.

 

 

-
Market Share
Market Share Variation
(percentage points)
4Q09
1Q10
2Q10
3Q10
4Q10
p.p. (QUA)
p.p. (QUA)
Vivo
29.75%
30.12%
30.24%
30.14%
29.71%
-0.43%
-0.04%
Claro
25.52%
25.45%
25.33%
25.47%
25.44%
-0.03%
-0.08%
TIM
23.63%
23.65%
24.00%
24.52%
25.14%
0.62%
1.51
Oi
20.73%
20.41%
20.08%
19.51%
19.35%
-0.16%
-1.37%

Vivo leads market share in three regions, in 12 from the 26 states and in 31 from the 67 area codes (DDD). Tim reached the leadership in the state of Ceará overtaking Oi, which leads only in Paraíba and Maranhão.

 

 

-
Market Share Leader in 3Q10
Region
State*
Are Code
Vivo
I, II e III
12
31
Claro
-
6
13
Tim
-
7
17
Oi
-
2
6

*Includes Brasília, the Brazilian capital

Vivo and Claro lead postpaid market share. In prepaid, Tim is winning market share, surpassing Claro in 3Q10 and reducing the difference that separates the carrier from Vivo to 2.4 p.p. in 4Q10.

 

 

Market Share
Postpaid
Prepaid
2Q10
3Q10
4Q10
2Q10
3Q10
4Q10
Vivo
34.7%
35.3%
35.2%
29.3%
29.0%
28.5%
Claro
27.3%
27.4%
28.6%
24.9%
25.1%
24.8%
Tim
21.3%
21.2%
20.9%
24.6%
25.3%
26.1%
Oi
16.1%
15.5%
14.7%
20.9%
20.4%
20.4%

 

 

 

Growth: Tim leads in 2010

 

Tim led mobile growth in 2010 overtaking the other operators in net adds in 2Q10, 3Q10 and 4T10. Vivo, which led net adds in 1Q10, stayed in the second position.

 

 

 

 

Net Adds (thousands)
-
1Q10
2Q10
3Q10
4Q10
2010
TIM
1,254
2,057
2,522
4,081
9,913
Vivo
2,205
2,028
1,737
2,578
8,548
Claro
1,182
1,318
1,865
2,871
7,237
Oi
501
614
189
1,915
3,218

 

 

 

Net Revenue: Vivo increases its advantage over Tim

 

Vivo amplified its leadership in net revenue over Tim (second carrier in the ranking).

 

 

 

 

R$ Billions
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
Vivo
4.0
4.0
4.2
4.4
4.2
4.4
4.6
4.9
Tim
3.2
3.5
3.5
3.5
3.3
3.6
3.7
3.9
Claro
2.7
2.8
2.6
2.8
2.8
2.9
2.6
2.8
Oi
2.0
2.2
2.4
2.5
2.5
2.6
2.6
2.7

Note: Tim includes Intelig. Vivo and Claro adopted IFRS, Tim and Oi didn't. Claro's values for 3Q09 and 3Q10 were reported considered the integration with Embratel that eliminates common revenues.

 

Data net revenue was the responsible for the biggest part of the growth in Vivo's revenue. It reached R$ 948 million in 4Q10 with growth of 48.1% over 4Q09. Data revenue already represents 20.7% of Vivo's service net revenue. For Tim, voice is still the main responsible for revenue growth.

 

 

ARPU: Vivo keeps the leadership in 4Q10

 

 

 

 

The growth of data revenue, encouraged by investments in 3G, helped Vivo to keep the leadership in ARPU. Oi overtook TIM in ARPU in 4Q10.

 

 

ARPU (R$)
4Q09
1Q10
2Q10
3Q10
4Q10
Vivo
27.1
24.8
25.0
25.2
25.9
Oi
22.5
21.8
22.4
22.9
23.5
TIM
27.0
24.0
24.1
23.4
23.3
Claro
22.0
20.0
19.0
19.0
18.0
ARPU Brazil
24.8
22.8
22.7
22.7
22.7

 

Note: Vivo and Claro adopted IFRS, Tim and Oi didn't. Claro's values for 3Q09 and 3Q10 were reported considered the integration with Embratel that eliminates common revenues.

 

Tim, which is growing mainly in the prepaid segment, presented fall in ARPU, but is the leader in number of monthly minutes of use by client (MOU).

 

 

Minutes
4Q09
1Q10
2Q10
3Q10
4Q10
TIM
99
100
110
123
129
Vivo
119
116
114
115
118
Claro
93
92
93
100
96
MOU Brazil
105
103
106
113
114

Note: Oi doesn't release this indicator.

 

 

Profitability: Oi leads EBITDA margin

 

Vivo led profitability in 4Q10 with EBITDA margin of 34.5%, but Oi mobile still kept the leadership in the year.

 

 

EBITDA Margin
1Q10
2Q10
3Q10
4Q10
2010
Vivo
30.1%
30.5%
33.4%
34.5%
32.2%
Oi
32.4%
34.6%
35.4%
29.5%
33.8%
Claro
31.7%
26.3%
-
-
-
Tim
28.7%
28.4%
28.2%
30.6%
29.0%

Note: Tim includes Intelig. Since 3Q10, América Móvil started to publish Claro's results consolidated with Embratel.

 

 

Quality: Tim leads in 4Q10, but Vivo keeps the leadership in the year

 

In 4Q10, Tim led quality by achieving Anatel's targets with 100% of accomplished targets. However, Vivo kept the leadership in the year.

 

Accomplished Quality Targets
-
1Q10
2Q10
3Q10
4Q10
2010
Vivo
99.9%
99.9%
99.4%
99.1%
99.6%
TIM
98.5%
99.0%
99.9%
100%
99.4%
Claro
98.7%
98.5%
97.8%
96.1%
97.6%
Oi
82.8%
80.6%
79.1%
80.6%
84.1%

 

 

Among these four operators, Vivo presented the smallest index of complaints in 4 quarters of 2010 and the best performance in answering theses complaints (IDA) in 12 months of the year.

 

 

Coverage: Vivo keeps the leadership

 

Vivo keeps the leadership in coverage reaching 90.2% of the population, despite of being threatened by Claro. Vivo covers more cities.

 

 

  Covered Cities Covered Population
Operator 1Q10 2Q10 3Q10 4Q10 3Q10 4Q10
Vivo 3,499 3,610 3,636 3,646 90.0% 90.2%
Claro 3,346 3,346 3,464 3,478 89.8% 90.1%
Tim 2,922 3,202 3,205 3,205 89.4% 89.5%
Oi 2,516 2,912 2,912 2,913 83.0% 83.2%

Source: Anatel

 

In 2010, Vivo led also in 3G coverage operating in 1,206 cities, followed by Claro (402), Oi (211) and TIM (195).

 

 

You could ask:

  • Will Vivo keep the leadership in the main part of the indicators in 2011?
  • Will Tim overtake Claro in market share?
  • Will Oi keep the leadership in profitability?
  • Will Claro overtake Vivo in coverage?

 

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

 

 

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