05/18/2011


Vivo, TIM and Oi are leaders in 1Q11

 

Vivo conquered the leadership in five indicators in 1Q11. Oi and TIM got one indicator each.

 

 

 

 

Indicator
Leader in
4Q10
1Q11
Mobile Accesses Market Share
Vivo
Vivo
Growth Net Adds
TIM
Oi
Revenue Net Revenue
Vivo
Vivo
Revenue p/ Client ARPU
Vivo
Vivo
Profitability EBITDA Margin
Vivo
Vivo
Quality Anatel's Targets
TIM
TIM
Coverage Covered Population
Vivo
Vivo

Note: The order doesn't reflect the importance of the indicators. CTBC and Sercomtel don't include. Oi includes BrT.

 

 

In 1Q11, Vivo showed performance similar to 4Q10 leading in 5 of the 7 indicators, TIM kept the leadership in quality, but lost the first position in growth conquered by Oi.

 

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 in 1Q11.

 

 

Market Share: Vivo leads and Oi is the only company to gain market share

 

Vivo, which is the biggest mobile carrier in Brazil, ended 1Q11 with 62.0 million mobile accesses and its market share hit 29.7%.

 

 

 

Oi was the only company to gain market share in 1Q11 and TIM was the only to gain it in the last 4 quarters.

 

 

-
Market Share
Market Share Variation
(percentage points)
1Q10
2Q10
3Q10
4Q10
1Q11
p.p. (Quarter)
p.p. (Year)
Vivo
30.12%
30.24%
30.14%
29.71%
29.48%
-0.23%
-0.64%
Claro
25.45%
25.33%
25.47%
25.44%
25.39%
-0.05%
-0.06%
TIM
23.65%
24.00%
24.52%
25.14%
25.11%
-0.03%
1.46
Oi
20.41%
20.08%
19.51%
19.35%
19.69%
0.34%
-0.72%

TIM and Claro are competing for the 2nd position in market share. The distance that separates TIM from Claro fell from 610 thousand mobile accesses (4Q10) to 589 thousand (1Q11).

Vivo leads the market share in 3 regions, in 12 of the 26 (plus Brasilia) and in 31 of the 67 area codes (DDD).

 

 

-
Market Share Leader in 1Q11
Region
States*
Area Code
Vivo
I, II and III
12
30
Claro
-
6
15
Tim
-
6
15
Oi
-
3
7

*Plus Brasília

In 1Q11, Oi reconquered the leadership in Pernambuco again from TIM and also the leadership in area code 31 (Belo Horizonte) from Vivo. Claro gained the leadership in area codes 49 (Chapecó - SC) and 89 (Picos - PI) from TIM.

Vivo and Claro led market share in the postpaid segment. In prepaid, Tim is gaining market share by overtaking Claro in 3Q10 and reduced the difference that separates it from Vivo to 2.1 p.p. in 1Q11.

 

 

Market Share
Postpaid
Prepaid
2Q10
3Q10
4Q10
4Q10
2Q10
3Q10
4Q10
4Q10
Vivo
34.7%
35.3%
35.2%
35.5%
29.3%
29.0%
28.5%
28.2%
Claro
27.3%
27.4%
28.6%
29.2%
24.9%
25.1%
24.8%
24.6%
Tim
21.3%
21.2%
20.9%
20.5%
24.6%
25.3%
26.1%
26.1%
Oi
16.1%
15.5%
14.7%
14.2%
20.9%
20.4%
20.4%
20.9%

 

 

Growth: Oi reached the leadership in 1Q11

 

Oi, which was following TIM, Vivo and Claro in all the quarters of 2010, led net adds growth in 1Q11. Contributed for this result the low churn presented by Oi in the quarter (2.6%), which grew again in its origin region (Region I).

 

 

Net Adds (thousands)
-
1Q10
2Q10
3Q10
4Q10
1Q11
Oi
501
614
189
1,915
2,170
TIM
1,254
2,057
2,522
4,081
1,821
Claro
1,182
1,318
1,865
2,871
1,800
Vivo
2,205
2,028
1,737
2,578
1,769

 

 

TIM led gross additions, but stayed behind Oi in net adds due to its churn of 4.3% (more details).

 

Oi and TIM's net adds are almost completely prepaid, while Vivo and Claro led growth in postpaid net adds.

 

 

 

 

Net Revenue: Vivo keeps the advantage over other operators

 

 

Vivo kept the leadership with revenue of R$ 4.8 billion in 1Q11. Vivo and Tim presented the biggest annual growth of the revenue (13.7% and 13.8% respectively), while Claro's revenue in 1Q11 increased 6.8% and Oi's grew 1.2% in comparison with 1Q10.

 

 

R$ Billions
1Q10
2Q10
3Q10
4Q10
1Q11
Vivo
4,233
4,402
4,608
4,863
4,812
Tim
3,296
3,559
3,677
3,926
3,752
Claro
2,769
2,902
2,589
2,772
2,958
Oi
2,487
2,590
2,652
2,745
2,517

Note: Tim includes Intelig. Claro's figures consider the integration with Embratel which eliminates common revenues.

 

Data was responsible for great part of the revenue growth. Vivo's data gross revenue in 1Q11 presented annual growth of 42%, TIM (32%), Claro (28%) and Oi (16%).

 

 

ARPU: Vivo amplifies the leadership in 1Q11

 

 

The growth in data revenue, stimulated by 3G investments, helped Vivo to amplify the leadership in ARPU. Vivo was the only carrier to increase ARPU in comparison with 1Q10.

 

 

ARPU (R$)
1Q10
2Q10
3Q10
4Q10
4Q10
Vivo
24.8
25.0
25.2
25.9
24.9
TIM
24.0
24.1
23.4
23.3
20.8
Oi
21.8
22.4
22.9
23.5
20.7
Claro
20.0
19.0
19.0
18.0
18.0
ARPU Brazil
22.8
22.7
22.7
22.7
21.3

Note: Claro's figures consider the integration with Embratel which eliminates common revenues.

 

 

TIM's ARPU in 1Q11 was 13% smaller than in 1Q10, but its minutes of use by user (MOU) inacreased 26% in the period.

 

Minutes
1Q10
2Q10
3Q10
4Q10
1Q11
TIM
100
110
123
129
126
Vivo
116
114
115
118
114
Claro
92
93
100
96
90
MOU Brazil
103
106
113
114
110

Note: Oi doesn't release this indicator.

 

 

Profitability: Vivo leads EBITDA Margin

 

Vivo led profitability in 1Q11, being the only one to present EBITDA margin superior to 30%.

 

EBITDA Margin
1Q10
2Q10
3Q10
4Q10
1Q11
Vivo
30.1%
30.5%
33.4%
34.5%
34.3%
Oi
32.4%
34.6%
37.6%
29.5%
27.1%
Claro
31.7%
26.3%
30.4%*
26.1%*
26.1%*
Tim
28.7%
28.4%
28.2%
30.6%
27.5%

Note: Tim includes Intelig. Claro's figures consider the integration with Embratel which eliminates common revenues.

*estimated by Teleco

 

 

Quality: Tim leads in 1Q11

 

Tim led this indicator by accomplishing Anatel's quality targets in 1Q11 meeting 99.8% of the targets. The carrier was followed by Vivo with 99.6%.

 

Accomplished Quality Targets
-
1Q10
2Q10
3Q10
4Q10
1Q11
TIM
98.5%
99.0%
99.9%
100%
99.8%
Vivo
99.9%
99.9%
99.4%
99.1%
99.6%
Claro
98.7%
98.5%
97.8%
96.1%
97.0%
Oi
82.8%
80.6%
79.1%
80.6%
84.5%

 

 

Among these four operators, Vivo got in 1Q11 the smallest number of complaints and the best index for attending these complaints (IDA).

 

 

Coverage: Vivo keeps the leadership

 

Vivo kept the leadership in this indicator by covering 90.3% of the population and 3,659 cities.

 

  Covered Cities Covered Population
Operator 1Q10 2Q10 3Q10 4Q10 1Q11 3Q10 4Q10 1Q11
Vivo 3,499 3,610 3,636 3,646 3,659 90.0% 90.2% 90.3%
Claro 3,346 3,346 3,464 3,478 3,486 89.8% 90.1% 90.2%
Tim 2,922 3,202 3,205 3,205 3,209 89.4% 89.5% 89.5%
Oi 2,516 2,912 2,912 2,913 2,913 83.0% 83.2% 83.2%

Source: Anatel

 

Vivo leads also 3G coverage reaching, in 1Q11, 1,353 cities. The operator is followed by Claro (409), TIM (230) and Oi (211).

 

 

You could ask:

  • Will Vivo keep the leadership in most of the indicators in 2011?
  • Will TIM overtakes Claro in market share?
  • Will Claro reach the leadership in any of these indicators in 2011?
  • How will ARPU evolve in 2011?

 

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

 

 

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