Teleco Blog

25
4/2021

Results 1Q21: Netflix, AT&T, Sky Brasil, 5G and more

Eduardo Tude

Results 1Q21: Netflix

Netflix's monthly net revenue by subscriber (ARPU) in the US is about twice as high as in Latin America.
This contributes to the fact that in the 1Q21 the USA accounted for 44% of the company's total revenue and Latin America for only 12%.
Netflix had 74.4 million subscribers in the US and 37.9 million in Latin America in 1Q21.
These differences widened this quarter. Netflix's revenue (US$) grew 24.2% in the world, 17.3% in the USA and 5.4% in Latin America. (1Q21/1Q20)
But, the number of Netflix subscribers grew 8.1% in the world in this period, being 6.3% in the USA and 10.4% in Latin America.
Teleco estimates that Netflix has 14 million subscribers in Brazil with ARPU around R$ 40.

Results 1Q21: AT&T/ SKY Brasil

AT&T revenue grew + 2.7% in 1Q21/1Q20, with 5.2% in communications (US), 9.4% in WarnerMedia and -13.6% in Latin America.
Its pay TV revenue in Latin America (Vrio) decreased by 16.2% in 1Q21/1Q20, due to the impact of the exchange rate and the loss of 383 thousand subscribers in the quarter, mainly driven by economic pressures, restructuring of sales channels in the Brazil and COVID-19 restrictions in parts of the region.
Teleco estimates the drop in SKY Brasil's revenue in 8.2% in this comparison.

Completed 1 month of analysis of the proposal for a 5G frequency announcement, Federal Court of Accounts starts pointing out to Anatel the critical points found.
Among them is the legality of including among the commitments of the public notice the construction of the private network for the public administration and the investments of the Integrated and Sustainable Amazon Plan (PAIS). They could be considered “a way of circumventing the spending limit and an attempt to circumvent public agencies' bidding obligations”.

More Highlights

Oi's ON shares appreciated by 4.1% in the week and the preferred shares by 2.0%.
MCom approved the issuance of debentures encouraged by TIM in the amount of R$ 5.75 billion.
Vivo launched a solution for M2M based on eSIM technology, an electronic chip that allows changing the operator without having to change the physical chip.
Millicom completed its exit from the African mobile market with the sale of its operations in Tanzania and Ghana. It now focuses on Latin America, where it had 41.2 million cell phones in 2020.

Coming Weeks

Results 1Q21: Claro and América Móvil (April 27th)

11
4/2021

5G, Streaming, Mobile and more

Eduardo Tude

The Public Ministry understands that the 60-day period requested by the government for the Federal Court of Accounts to analyze the auction notice is short. According to Anatel, this period can reach 90 days, which would cause the publication of the 5G auction notice to take place in August and the auction at the end of September.
The begining of 5G operations at 3.5GHz would take place in September 2022 in the Capitals and Brasília.
Federal Court of Accounts held a closed Seminar on the 5G auction in order to hear interested parties and resolve doubts.
Issues such as investments in the Government's Private Network, the migration from TVRO to the Ku Band and the 26 GHz frequencies were discussed.
The focus of the Court is on validating the proposed values for the frequency bands and the commitments established.
The total estimated value for the frequencies would have grown to R$ 40 billion due to a revaluation of the price for the 2.3 GHz band.
Claro will implement 5G coverage on the campus of Centro Universitário Facens, in Sorocaba (SP), using Ericsson's equipment.
The 5G Realme 7 Smartphone will be launched in Brazil for R$ 2.6 thousand. 19 models of 5G smartphones are approved by Anatel.
Measurements made by Open Signal in the USA indicate that the average speeds of smartphone users with 5G mmWave (640.5 Mbps) are almost thirty times faster than when using public WiFi.

Streaming

JustWatch released market share information for the streaming market in Brazil:

Netflix (32%)
Amazon (26%)
Disney+ (10%)
Globo Play (8%)
Telecine Play e HBO GO (7%)
Claro Video 4%
Others 6%

Globo announced a partnership with Google Cloud to migrate its systems to the cloud. Globo intends to dispose of its data centers within two years.

Mobile

Claro (214 thousand) and Vivo (33 thousand) presented a positive balance of mobile portability in the first two months of the year TIM (-121 thousand) and Oi (-129 thousand) presented a negative balance.
MVNO Veek launched a mobile plan based on advertising and free to users. They will be entitled to 1 GB of data per month, unlimited calls and an SMS package in exchange for advertising.
After years of losses, LG decided to leave the cell phone market. In Brazil, this will lead to the closure of the factory in Taubaté (SP), which has more than 1,000 employees, and less competition in the national market. LG had 12% of the Brazilian market, behind Samsung and Motorola.
TIM will deploy 4G at 700 MHz in an area of almost one million hectares of Adecoagro farms in Mato Grosso do Sul.

The exclusivity agreement between Oi and BTG for the sale of InfraCo's control to be closed has been extended from the 5th to the 9^th of April.
Oi's ON shares raised by 3.7% in the week and PN by 4.2%.

More highlights

MCTI published an ordinance establishing the Brazilian Artificial Intelligence Strategy and its thematic axes.
CADE approved the constitution of FiBrasil, Vivo's fiber unit that will have Telefônica Brasil (50%) and Canadian fund (CDQP) as controllers.
CADE is analyzing manifestations of interested parties in the operation of the purchase of the Telxius towers (Telefônica/Vivo) by American Tower.
Seal Telecom was acquired by Convergint Technologies.
centralized contracting of a specialized company to provide managed cloud computing services. The result is being contested by the other participants claiming that EDS did not present the required experience certificates.

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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Results 1Q21: Netflix, AT&T, Sky Brasil, 5G and more

5G, Streaming, Mobile and more