São Paulo will continue 7th in cellular density?
São Paulo is the biggest brazilian state in population (41.5 million), cellular subscribers (25 million) and PIB (30.9% from the total of Brazil). It's the third in PIB per capita, behind Distrito Federal and Rio de Janeiro, but is the 7th state in cell phones density in Brazil.
This situation is starting to change this year. In the first 4 months of 2007 São Paulo grew for the first time with the same tax of Brazil and exceeded other States in which leads density.
This growth wasn't pulled up by metropolitan region of São Paulo (11). Even though with perspective of a 4th operator (Unicel) and occupying the 13th density position in Brazil (65.25 cell/100 inhab.), this was the lowest gorwth area in the State (2.4%). The biggest growth happened in less dense areas (15, 17 and 18) which grew 4.7 to 6%.
DDD |
Main City | Cellulars |
Dens. |
Growth Jan-Apr/07 |
11 |
São Paulo | 14,021 |
65.25 |
2.4% |
12 |
São J. Campos | 1,264 |
58.26 |
3.4% |
13 |
Santos | 1,097 |
59.22 |
2.8% |
14 |
Bauru | 1,190 |
50.99 |
4.1% |
15 |
Sorocaba | 900 |
48.49 |
4.7% |
16 |
Ribeirão Preto | 1,600 |
57.16 |
2.8% |
17 |
S. J. do Rio Preto | 979 |
49.93 |
5.0% |
18 |
Presid. Prudente | 858 |
44.78 |
6.0% |
19 |
Campinas | 3,061 |
60.07 |
3.4% |
São Paulo |
- | 24,971 |
60.21 |
3.0% |
One of the reasons for São Paulo's growth decrease is less competition between operators in the state. São Paulo is one of the states attended for only 3 cellular operators. Vivo share with CTBC the attendance in the areas 16 and 17. In Minas Gerais, for example, cellular growth increased with the operation of fourth operator (Claro) in the end of 2005. São Paulo's situation:
| Apr/07 | Market Share |
Growth Jan-Apr/07 |
Coverage |
|
Cities |
% population |
|||
| Vivo | 43.1% |
0.6% |
457 |
98.23 |
| Claro | 31.8% |
6.0% |
622 |
98.12 |
| Tim | 24.9% |
3.5% |
498 |
98.6 |
| CTBC | 0.2% |
-5.4% |
24 |
1.89 |
Claro was the operator with better growth in the year until Abril. Vivo leads in 7 of the 9 areas with Claro being the leader in the areas 16 and 19. Tim occupies the 2nd place in market share in the metropolitan region (11).
Another thing to be considered is the higher price of cellular service in São Paulo comparing with other states. The minute of pre-pay cellular in São Paulo, for example, is the most expensive of Brazil. Even more expensive comparing with states that have higher taxes ( ICMS) 35% in Rondônia or Rio 30% in Rio de Janeiro. The ICMS of São Paulo is 25%.
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