Who leads cellular in Brazil?
The running between Vivo and Tim for the leadership in Brazil put in discussion criterias to define who the leader is. The following board presents 7 indicators selected by Teleco to define this leadership.
| Leader in | Indicator |
Leader 1Q07 |
| Cellulars | Market Share |
Vivo |
| Growth | Net Adds |
Tim |
| Revenue | Net Revenue |
Vivo |
| Revenue per Client | ARPU |
Tim |
| Profit | EBITDA Margin |
Telemig/Amaz |
| Coverage | Population attended |
Tim |
| Quality | Anatel Goals |
Telemig/Amaz |
Note: CTBC and Sercomtel were not included.
Based on this indicators cellular leadership in Brazil in the 1st quarter 2007 (1Q07) :
In 2006 Vivo led in Market Share and Revenue and Tim in Growth, ARPU and Coverage. Telemig/Amaz and Vivo in EBITDA Margin (23.7%) and Oi led in quality. It's following below a analyse of these indicators to the 1Q07.
Cellular's Quantity: Market Share and Growth
Vivo is the biggest cellular operator of Brazil with 29 million cellulars and market share of 28.42%. It also leads market share in 2 Regions, 11 Federary Units and 28 local areas (DDD). (More details)
| 1Q07 | Market Share |
Cellulars (thousands) |
Leader in Market Share |
||
Region |
State |
Local Area |
|||
| Vivo | 28.42% |
29,030 |
II and III |
11 |
28 |
| Tim | 25.77% |
26,321 |
- |
7 |
20 |
| Claro | 24.09% |
24,608 |
- |
3 |
5 |
| Oi | 13.08% |
13,358 |
I |
4 |
9 |
| Telemig/Amaz | 4.65% |
4,752 |
- |
2 |
5 |
| BrT | 3.56% |
3,636 |
- |
- |
- |
Vivo's leadership has also been threatened by Tim, that led net adds in the quarter and reduced the distance that keeps it apart Vivo from 3.6 million cellulars in 2006 to 2.7 million in 1Q07.
Oi is also worried about losing leadership in market share in the Region I to Tim. The difference that separates both operators in this region fell from 615 thousand cellulars in 2006 to 319 thousand in the 1Q07.
Brt was the leader in percentage growth (7.7%).
Revenue and ARPU
Vivo was leader in revenue in 1Q07.
| R$ Thousands | Gross Revenue |
Net Revenue |
Revenue Share |
| Vivo | 3,964 |
2,851 |
29.5% |
| Tim | 3,895 |
2,843 |
29.4% |
| Claro | 2,830* |
2,155 |
22.3% |
| Oi Celular | 1,331 |
1,000 |
10.3% |
| Telemig/Amaz | 700 |
432 |
4.5% |
| BrT | 541 |
385 |
4.0% |
* Teleco data
This leadership has also been threatened by Tim, that exceeded Vivo in service revenue. Tim's services net revenue in 1Q07 was R$ 2,662 thousands and Vivo R$ 2,609 thousands. Vivo keeps its leadership having bigger devices net sales than Tim.
Leadership in revenue share Tim has the bigger ARPU presented by the operator.
| 1Q07 | ARPU (R$) |
MOU |
| TIM | 34.4 |
89 |
| BrT | 33.4 |
ND |
| Vivo | 30.0 |
75 |
| ARPU Brazil | 29.4 |
76 |
| Amaz Cel | 28.4 |
78 |
| Telemig | 27.6 |
69 |
| Claro | 27.0 |
64 |
| Oi | 22.1 |
ND |
Profit
Telemig/Amazônia Celular was led profit in the 1Q07, with EBITDA Margin and EBIT superior to others. Telemig and Oi Celular were the only operators to present profit in the quarter. Oi Celular's profit is a result of financial revenue of the operator.
| 1Q07 | EBITDA Margin |
EBIT Margin |
Profit |
| Telemig/Amaz | 34.6% |
16.4% |
37 |
| Claro | 27.4% |
7.8% |
ND |
| Vivo | 26.6% |
6.5% |
(19) |
| TIM | 23.4% |
2.9% |
(19) |
| Oi | 18.3% |
0.4% |
46 |
| BrT GSM | 1.1% |
-23.4% |
(53) |
Claro improved it margins in the 1Q07 exceeding for the first time Vivo and Tim.
Coverage and Quality
Tim, is the only operator in every State of Brazil, is leader in population and attended cities.
| Operator | Population |
Cities |
| Tim | 86% |
44% |
| Claro | 78% |
42% |
| Vivo | 67% |
41% |
| Oi | 39% |
14% |
| Telemig/Amaz | 15% |
9% |
| Brasil Telecom | 21% |
14% |
Telemig/Amazônia Celular was leader in attendance quality goals in 1Q07 (more details).
| 1Q07 | Attended Goals |
| Telemig/Amaz | 98.0% |
| Tim | 97.9% |
| BrT GSM | 96.0% |
| Brasil | 94.3% |
| Claro | 92.3% |
| Vivo | 91.0% |
| Oi | 79.5% |
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