Teleco Blog

23
2/2020

5G, Vivo, Oi and other highlights

Eduardo Tude

Anatel published public consultation about the 5G bidding notice;
In the 3.5 GHz band, 3 national blocks (100 MHz, 100 MHz and 80 MHz) and 2 regional blocks will be auctioned, being 1 for new players. Check out the 7 regions and more details of the announcement at: https://www.teleco.com.br/5g_licitacao.asp;
China Mobile, the world's largest operator, registered 6.7 million 5G mobile phones in the space of three months, with 74 thousand cell sites deployed in 50 cities by the end of January (C114.net);
Huawei reported that it has already secured 91 commercial 5G contracts, more than half in Europe.

Results 2019: Vivo

Vivo had a good performance in 2019 with an EBTIDA margin of 41% and net profit of R$ 5 billion;
Net revenue increased 1.9%, with the 4.8% growth in mobile net revenue offsetting the 3.2% loss in fixed services revenue. Vivo's fixed broadband revenue grew 9.3% in 2019, but it reported losses in fixed telephony (-19.1%) and pay TV (-8.1%) revenues;
Vivo ended the year with its FTTH network counting 13.3 million homes passed and intends to add another 2.3 million in 2020.

Oi ended Dec/19 with R$ 1.9 billion in cash, less than the R$ 2.2 billion in Nov/19;
ON shares raised 9.8% in the week and PN by 4.3%.

Other Highlights

Board member Emmanoel Campelo was again appointed to serve as the substitute president of Anatel agency in the absence of the holder;
Anatel has revised VU-M readjustments for the period 2020 to 2023 to lower values.

16
2/2020

Anatel's satisfaction survey, TIM, Claro and other highlights

Eduardo Tude

Satisfaction and perceived quality survey

Claro led the consumer satisfaction survey conducted by Anatel, being rated as the best in postpaid, prepaid and pay TV services.
Competitive operators, led by Unifique, Copel and Brisanet, were considered the best in fixed broadband;
Sercomtel was chosen the best in fixed telephony, followed by Algar.

2019's Results: TIM

In 2019, TIM focused on improving its profitability and achieved the goal. The normalized EBITDA margin reached 46.7% and the normalized profit hit R$ 1.9 billion. The normalization carried out by TIM excludes transitory effects such as gains from the court decision not to impose PIS/Cofins on ICMS. Net revenue grew 1.9% in the year, below the guidance of 3% established by it for 2019.
TIM's strategy seems to be geared towards a possible consolidation process involving Oi. TIM's net debt fell from R$ 1.5 billion in 2018 to R$ 476 million in 2019.

2019's Results: Claro

Claro's net revenue grew by 1.9% in 2019, with mobile revenue up 9.7% and fixed revenue down 2.5%;
In 4Q19 fixed broadband revenue grew 9.5%, but fixed telephony (-16.5%) and pay TV (-8.2%) fell;
The EBITDA margin was 37.2% in the year.

Events

GSMA canceled MWC Barcelona 2020 because global concern over the corona virus outbreak made it impossible to host the event. Undoubtedly a great loss for the sector. The Glomo Mobile Awards, of which I am a judge, still looks at how this year's winners will be announced;
Aliança Conecta Brasil F4, chaired by former deputy Daniel Vilela, was launched at an event that included the participation of Neo, Abrint, Abert, Bravi, SindiTelebrasil, parliamentarians and other authorities. The entity aims to increase quality and promote the expansion of the content, broadband and screens ecosystem in Brazil. Teleco is one of the founders, along with Huawei and FiberX.

Other highlights

Oi's ON shares appreciated by 5.15% in the week and PN by +1.45%;
Vivo activated its FTTH network in Amparo (SP) and Rio Verde (GO);
WhatsApp surpassed the mark of 2 billion active users;
Brazil occupies the 53rd position among 100 countries in the Opensignal Mobile Game Experience ranking, being considered fair;
The merger of the mobile operators T-Mobile and Sprint in the USA received the green light from the federal court in New York and seems to have no more obstacles to be carried out.

Coming soon

Vivo's results report (19/02);

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).

☰

5G, Vivo, Oi and other highlights

Anatel's satisfaction survey, TIM, Claro and other highlights