Balance of 2007: The year was better than 2006
The sector of telecommunications in Brazil had the following events in 2007:
The year of 2007 began slow, with low cellular growth, but ended being better than 2006. In a research done by Teleco, in the end of 2006 43% considered that year as good/great against 69% in 2007.
Note: Data of 2007 predicted by Teleco
Cellular
The growth of cellular sped up in the 2nd semester and Brazil ended 2007 with around 120 million cell phones (more details) keeping the 5th position between countries with more cellulars in the world. The density of cellulars surpassed 60 cell/100 inhab.
The new President of Anatel ( Regulator agency) Ronaldo Sardenberg improved the work of the Agency in which have done biddings of SMP frequencies and 3G frequencies.
The first bidding will make possible the entrance in operation in 2008 the operator Oi in São Paulo, Vivo in the Northeast and Claro in the North region. The bidding of 3G, available frequencies to the implantation of this new technology in the whole country and extend the coverage of cellular to cities not attended yet.
With the acquisition of Telemig by Vivo and Amazônia Celular by Oi the market share of the cellular operators in Nov/07 is shown below:
The production of cell phones in 2007 was close to 2006 (66 millions). In 2007, the quantity of exported cell phones was 34% lesser than 2006. The importations were 24% bigger. Market sales grew from 37 millions devices in 2006 to 50 millions in 2007 (Teleco's predictions). The difference was absorbed by the growth of sales in the intern market.
Fixed Telephony, VOIP, Broadband and Pay TV
The trend of decrease in the total of fixed accesses in service changed in 2007 thanks to the authorities. The quantity of fixed accesed in service of the concessionaires continues decreasing.
| Millions | 2005 |
2006 |
Oct/07 |
| Concessionaires | 37.6 |
35.7 |
35.1 |
| Authorized | 2.2 |
3.1 |
4.2 |
| Total | 39.8 |
38.8 |
39.3 |
Source: Anatel
The quantity of VOIP grew from 260 thousand in 2006 to 600 thousand in Sept/07.
Pay TV grew in Net Adds in 2007 and Broadband in 2007 had the same Net Adds of 2006.
Earnings of the Sector
The earnings of telecommunication sector in the first nine months of 2007 was 6.9% bigger than the same period of 2006. The revenue of cellulars presented bigger growth (23.8%), followed by Pay TV (15.3%) and Fixed (3.5%).
The revenue of the cellular operators surpassed for the first time the revenue of fixed telephony (without data). This is an indicator that in 2008 the revenue of the cellular operators must surpass fixed operators.
The earnings of cellular operators presented low improvement in 2007 with EBITDA margin of 23.4% in the first 9 months of the year.
The investments of the operators were lesser in 2007 than 2006.
Consolidation of the Groups
Telefonica consolidated itself as the bigger telecommunications group of Brazil, in second the group Claro/Embratel (more details).
The year of 2007 had some consolidation and reestructure of companies:
The process of reestructure of Telemar (Oi) was blocked by shareholders which did not agree with the price proposed to buy its shares.
According to the subject discussed in the text above, you could ask:
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