Teleco Blog

7
1/2018

Fixed Broadband, Oi, Algar and other highlights

Eduardo Tude

Fixed broadband in November

With net adds of 113 thousand accesses in November, fixed broadband confirms the trend that points out to bigger growth in 2017 in comparison with 2016. Accumulated net adds reached 1.8 million additions in the year, being 1.1 million with fiber accesses;
Claro was the growth leader in November by holding net adds of 50 thousand accesses and Vivo (-2 thousand) and Oi (-19 thousand) presented negative net adds. The group formed by the other operators registered, together, 85 thousand net adds.

Oi’s Judicial Recovery

Pharol, Portuguese company which is the Oi’s biggest stockholder, demanded from Oi’s administration council an extraordinary meeting to decide about “issues that affect the judicial recovery plan”;
Oi sent to the Justice Court of Rio de Janeiro a request for approval. Currently in recess, the Justice Court will resume activity on January 20^th;
Oi’s stocks had loss of 4.4% in the week and PN fell 2.0%.

Algar Telecom

Algar Telecom sold 25% of its common and preferred stocks for Archy LLC, an affiliate of Singapore sovereign fund GIC Special Investments;
Archy LLC will invest R$ 1 billion in Algar Telecom, through two distinct operations: capital increase when it will inject at least R$ 352 million and acquisition of common stocks in which it will invest more than R$ 648 million;
The public offer of Algar’s stocks was cancelled.

Broadcasting

Vanda Bonna Nogueira, Broadcasting secretary in the Brazilian MSTIC (Ministry of Science, Technology, Innovation and Communications), resigned from its position;
According to the journalist Ricardo Feltrim, Globo Group may end 2017 with net profit of about R$ 1.7 billion and other TV broadcasters with little profit, none or loss.

Other highlights

5.8 million phone number were ported in Brazil in 2017, with growth of 25.4% in relation to 2016. 4.4 million mobile accesses (+31.1%) and 1.4 million fixed telephones (+10.5%);
Fixed telephony incumbents lost 74 thousand telephones in November. From January to November companies lost 996 thousand telephones 762 thousand of them were Oi’s and 253 thousand were Vivo’s;
Telefônica Brasil finished 2017 counting R$ 78 billion in market cap (+11.2%), TIM Participações counted R$ 32 billion (+67.3%) and Oi R$ 3 billion (+40.7%);
Vivo activated IPTV services de IPTV in 20 Brazilian cities: Niterói, Rio de Janeiro, Suzano, Taubaté, Mogi das Cruzes, Barra Mansa, Pouso Alegre, Volta Redonda, Itabuna, Garanhuns, Botucatu, Avaré, Lençóis Paulista, Brasília, Petrolina, Teresina, Vitória da Conquista, São José do Rio Preto, Porto Alegre, Florianópolis and Guarapari;
Brazilian Government reduced to R$ 162.2 million (-34%) Telebras’ budget to 2018. The submarine cable Project between Brazil and Europe will count only with R$ 1 million;
Anatel approved in advance the consolidation of TIM Mobile with TIM S.A into one single company;
According to the press, Didi Chuxing, Chinese company that was already 99’s stockholder (transport application company), purchased its control for R$ 960 million. In this operation, 99 would have been evaluated in US$ 1 billion;
WhatsApp registered 10 billion messages exchanges between its Brazilian users from 9am of December 31^st to 9am of January 1^st;
Huawei expects to close 2017 with net revenue of US$ 91.2 billion, 15% bigger than the previous year;
The merger between Telecom Argentina and Cablevisión was effectuated.

Coming week

SES 2018 in Las Vegas

Eduardo Tude

President and partner at Teleco (consultancy company), works since 2002 as analyst of Telecom market, coordinating consulting projects, publishing weekly articles, preparing sector reports and presenting workshops.

Telecom Engineer (IME 1978) and MSc. in Telecom Engineering (INPE 81), Tude is member in the Mobile World Congress’s judging commission for the Global Mobile Awards, in Barcelona, and was also a visiting specialist professor at Unicamp.

Tude had many positions in the management of Telecommunication companies in areas like Mobile Systems (Ericsson), Optical Networks (Pegasus Telecom) and Satellites (INPE).

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Fixed Broadband, Oi, Algar and other highlights