02/28/2012


Vivo and TIM led cellular market in 4Q11

 

Vivo amplified, again, its leadership in the seven cellular indicators followed by Teleco, in the fourth quarter of 2011 (4Q11). Vivo led five and TIM two.

 

 

 

 

Indicator Leader in
1Q11
2Q11
3Q11 4Q11
Cellulars Market Share
Vivo
Vivo
Vivo Vivo
Growth Net Adds
Oi
TIM
TIM TIM
Revenue Net Revenue
Vivo
Vivo
Vivo Vivo
Revenue by Client ARPU
Vivo
Vivo
Vivo Vivo
Profitability EBITDA Margin
Vivo
Vivo
Oi Vivo
Quality Anatel's Targets
TIM
Vivo
TIM TIM
Coverage Covered Population
Vivo
Claro
Claro Vivo

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

 

Since 2007, Teleco keeps track of the performance gotten by the cellular operators in Brazil, measuring it through seven indicators. The following present the results in each of these indicators in 4Q11.

 

 

Market Share: Vivo leads and gains market share in the quarter

 

Vivo, the biggest cellular operator in Brazil, ended 2011 counting 71.6 million mobile accesses and market share reached 29.54%.

 

 

 

 

Vivo and TIM gained market share in 4Q11. Claro and Oi lost it. TIM was the only carrier to gain market share in the year.

 

 

- Market Share Variação do Market Share
(pontos percentuais)
4Q10
1Q11
2Q11
3Q11
4Q11
p.p. (QUA) p.p. (2011/2010)
Vivo
29.71%
29.48%
29.47%
29.49%
29.54%
0.05
-0.17
TIM
25.14%
25.11%
25.55%
26.04%
26.46%
0.42
1.32
Claro
25.44%
25.39%
25.55%
25.30%
24.93%
-0.37
-0.51
Oi
19.35%
19.69%
19.10%
18.84%
18.78%
-0.06
-0.57

Vivo is the market share leader inside 3 regions, in 12 of the 27 states (it included the Brazilian capital Brasília) and in 29 of the 67 area codes. In 4Q11, Claro lost the leadership inside the area code 12 (São José dos Campos) for TIM.

 

 

- Market Share Leader in 2011
Region
State*
Area Code
Vivo I, II e III 12 29
Claro - 6 16 (-1)
Tim - 5 16(+1)
Oi - 4 6

*States include Brasila (Brazilian capital)

In 4Q11, Vivo lost market share in the postpaid segment despite of leading net adds in this segment in the whole year.

 

 

 

 

In prepaid, Tim is gaining market share and may overtake Vivo in 2012. Inside this segment, the difference which separates both companies dropped from 4.1 million (registered in 2010) to 660 thousand in 2011.

 

 

 

 

Growth: TIM becomes leader

 

TIM led cellular growth in the quarter (4.9 million) and in the year (13.1 million).

 

-
Net Adds (thousands)
1Q11
2Q11
3Q11
3Q11
Accumulated in the year
TIM
1,821
2,676
3,685
4,873
13,056
Vivo
1,769
1,988
2,989
4,515
11,261
Claro
1,800
2,096
1,979
2,866
8,742
Oi
2,170
67
1,332
1,642
6,211

 

 

Vivo was second in total and prepaid net adds.

 

 

 

 

Claro and Oi's were inferior in comparison with TIM and Vivo's.

 

 

Net Reevenue: Vivo kept the advantage over the other operators

 

Note: Oi will report its results 4Q11/2011 only in 03/29/2012.

 

Vivo remained in the leadership by holding revenue of R$ 5.3 billion in 4Q11 and growth of 7.1% in the quarter.

 

 

R$ Billion 4Q10 1Q11 2Q11 3Q11 4Q11 Quarter Growth Growth
4Q11/4Q10
Vivo 4,772 4,671 4,732 4,923 5,271
7.1%
10.5%
TIM
3,671
3,501
3,983
4,114
4,431
7.&%
20.7%
Claro 3,071 2,958 3,060 3,138 3,235
3.1%
5.3%
Oi 2,745 2,517 2,784 2,840 2,840
-
¨-

 

Vivo reviewed its revenue eliminating intra-company revenues and so considering as mobile revenue the long distance calls made from cell phone.

 

TIM the biggest revenue growth of the year: 20.7%, almost the double of Vivo's growth which reached 10.5%.

 

 

ARPU: Vivo amplifies its leadership in in 4Q11

Note: Vivo reviewed its revenue eliminating intra-company revenues and so considering as mobile revenue the long distance calls made from cell phone. Oi will report its results 4Q11/2011 only in 03/29/2012.

 

The growth of data revenue, encouraged by investments in 3G, helped Vivo to amplify the leadership in ARPU. Vivo's ARPU of data (R$ 6.4) represented 26.0% of the total ARPU (R$ 24.6) in 4Q11.

 

 

ARPU (R$) 4Q10 1Q11 2Q11 3Q11 4Q11
Vivo 25.2
23.6
23.5

23.9

24.6

Oi 23.5 20.7 21.6 22.2 -
TIM 23.3 20.8 21.6 21.2 21.9
Claro 18.0 18.0 17.0 17.0 17.0
ARPU Brazil 22.8 21.2 21.5

21.8

-

Note: Vivo reviewed its revenue eliminating intra-company revenues and so considering as mobile revenue the long distance calls made from cell phone. Oi will report its results 4Q11/2011 only in 03/29/2012.

 

The Brazilian minutes of use by user (MOU) increased 5.3% in 4Q11 over 4Q10.

 

Minutes 4Q10 1Q11 2Q11 3Q11 4Q11
TIM
129
126
127
130
131
Vivo 118 114 119 124 119
Claro 96 90 84 109 109
MOU Brazil 114 110 110 122 120

Note: Oi doesn't report this indicator.

 

 

Profitability: Vivo leads EBITDA Margin

 

Vivo/Telefônica Group led profitability in 4Q11, as good results of the integration of fixed and mobile operations.

 

 

 

Oi will report its 4Q11/2011 results only in 03/29/2012 and will hardly overtake Vivo/Telefônica in this indicator in 4Q11.

 

 

EBITDA Margin 4Q10 1Q11 2Q11 3Q11 4Q11
Vivo/Telefonica
37.7%
35.4%
37.1%
34.1%
38.5%
Oi
31.2%
28.6%
35.0%
35.6%
-
TIM 30.6% 27.5% 26.8% 26.4% 27.8%
Claro/Embratel/Net
26.0%
28.6%
28.0%
26.7%
24.5%

 

Note: In 2Q11, a modification was made in the criteria to profitability of the indicators calculated by TELECO, we started to consider Group's EBITDA margin gathering fixed and mobile operations. It was necessary to make this modification because Vivo, Claro and TIM report this indicator only in this way.

 

 

Quality: TIM led in 3Q11

 

TIM led quality by accomplishing 99.8% of Anatel's targets in 4Q11 and in 2011, followed closely by Vivo that hit 98.7% and 99.5% respectively.

 

Accomplished Quality Targets
-
1Q11
2Q11
3Q11
4Q11
2011
TIM
99.8%
99.9%
99.9%
99.8%
99.8%
Vivo
99.7%
100%
99.4%
98.7%
99.5%
Claro 97.0% 95.5% 92.8% 83.3% 92.1%
Oi 74.2% 91.4% 86.9% 88.9% 85.4%

 

 

Among these four operators, Vivo presented the smallest index of complaints in 4Q11 and the best performance in solving these complaints (IDA).

 

 

Coverage: Vivo recovered the leadership

 

Vivo recovered the leadership in covered population (90.7%), overtaking Claro, but the difference between both operators continues to be small.

 

 

  Covered Population
Operator 4Q10 1Q11 2Q11 3Q11 4Q11
Vivo 90.2% 90.3% 90.3% 90.5% 90.7%
Claro 90.1% 90.2% 90.6% 90.6% 90.6%
Tim 89.5% 89.5% 89.5% 89.6% 89.6%
Oi 83.2% 83.2% 83.2% 83.3% 83.3%

Source: Anatel

 

Vivo continues to lead in the number of covered cities.

 

  Covered Cities
Operator 4Q10 1Q11 2Q11 3Q11 4Q11
Claro 3,478 3,486 3,568 3,568 3,568
Vivo 3,646 3,659 3,665 3,683 3,702
Tim 3,205 3,209 3,209 3,212 3,212
Oi 2,913 2,913 2,913 2,979 3,212

 

Vivo led 3G coverage in 2011, ending the year covering 2,516 cities, followed by Claro (657), TIM (488) and Oi (250).

 

 

You could ask:

  • Is the leaders board likely to be more equilibrated in 2012?
  • Will Tim overtake Vivo in prepaid market share?
  • Will Oi and Claro get back to the growth track at the same leves as TIM and Vivo's in 2012?
  • How will ARPU and MOU evolve in 2012?

 

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

 

 

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