Who were cell phone leaders in 2007?
Four operators were leaders in 2007: in market share (Vivo), coverage (Tim), growth (Claro) and ARPU (BrT).
| Leader in | Indicator |
Leader 1Q07 |
Leader 2Q07 |
Leader 3Q07 |
Leader 4Q07 |
2007 |
| Cellulars | Market Share |
Vivo |
Vivo |
Vivo |
Vivo |
Vivo |
| Coverage | Population attended |
Tim |
Tim |
Tim |
Tim |
Tim |
| Growth | Net Adds |
Tim |
Claro |
Claro |
Claro |
Claro |
Revenue per Client |
ARPU |
Tim |
Tim |
BrT |
BrT |
BrT |
| Revenue | Net Revenue |
Vivo |
Tim |
Vivo |
Tim |
Vivo |
| Profit | EBITDA Margin |
Telem./ Amaz |
Telem./ Amaz |
Oi |
Oi |
Telem/ Amaz |
| Quality | Anatel Goals |
Telem./ Amaz |
Telem./ Amaz e Oi |
Telem./ Amaz |
Claro |
Telem/ Amaz |
Note: The order doesn't reflect the importance of the indicators. CTBC and Sercomtel weren't included.
Telemig/Amazônia, leader in profit and quality in 2007, lost the leadership on these two indicators in the 4th quarter of 2007 (4Q07) to Oi and Claro. The most fierce dispute happened between Vivo and Tim for the leadership in net revenue.
It's following presented a detailed analyse of these results.
Market Share: Vivo keeps leadership
Vivo kept leadership, even losing market share in every quarter. Claro was the only operator to always win market share. Tim presented a little decrease in the 4Q07.
| Millions | 4Q06 | 1Q07 | 2Q07 | 3Q07 | 4Q07 |
| Vivo | 29.08% | 28.42% | 28.35% | 27.78% | 27.68% |
| Tim | 25.45% | 25.77% | 25.78% | 25.87% | 25.85% |
| Claro | 23.90% | 24.09% | 24.61% | 24.82% | 24.99% |
| Oi | 13.09% | 13.08% | 12.78% | 13.21% | 13.21% |
| Telemig/Amaz | 4.65% | 4.65% | 4.53% | 4.37% | 4.39% |
| BrT | 3.38% | 3.56% | 3.53% | 3.57% | 3.52% |
Vivo is the biggest cellular operator of Brazil with 34.5 million cellulars. It's leader in market share in 2 Regions, 11 States (UF) and 29 of the 67 local areas (DDD). (More details).
| Leader in Market Share |
Region |
State* |
Area Code DDD |
||
1Q07 |
4Q07 |
1Q07 |
4Q07 |
||
| Vivo | II/III |
11 |
11 |
28 |
27 |
| Tim | - |
7 |
8 |
20 |
19 |
| Claro | - |
3 |
3 |
5 |
8 |
| Oi | I |
4 |
4 |
9 |
9 |
| Telemig/Amaz | - |
2 |
1 |
5 |
4 |
| BrT | - |
- |
- |
- |
- |
* Federacy Units
Between 4Q07 and 1Q07 Vivo lost to Claro the leadership in the area codes 12 (São José dos Campos/SP) and 19 (Campinas/SP), but took from Oi the leadership in the area code 73 (Ilhéus/BA).
Tim took from Telemig the leadership in Minas Gerais and in the area code 38 (Montes Claros/MG), but lost the leadership in the area code 69 (Porto Velho/RO) to Claro and in the area code 86 (Teresina/PI) to Oi.
With the joint venture of Telemig, Vivo is able to keep leadership in 2008. Vivo/Telemig ended 2007:
|
Coverage: Tim will have its threatened in 2008
Tim, only operator in all States (UF), is leader in population and cities attended.
| Operator | Population |
Cities |
| Tim | 86% |
45% |
| Claro | 78% |
42% |
| Vivo | 67% |
42% |
| Oi | 39% |
15% |
| Brasil Telecom | 21% |
15% |
| Telemig/Amaz | 15% |
10% |
The leadership of Tim will be threatened in 2008 by Vivo and Claro that will be in all of the States of Brazil.
With the joint venture of Telemig, Vivo got leadership in cities coverage (48%), but continues in 3rd in population attended (76%). |
Growth: Claro leads the quarter and the year
Claro kept leadership with net adds of 2,247 thousand cellulars in the quarter and 6,347 thousand cellulars in the year. It was exceeded by Tim just in the 1Q07.
Oi after having a strong growth in the 3Q07 according to the campaign "Ligador" reduced in the 4Q07. Amaz/Telemig grew in the 4Q07 with net adds of 390 thousand cellulars, focused in Belo Horizonte (area code - DDD 31).
Vivo was really good in the 4Q07 with net adds of 2,163 thousand cellulars leading growth in december.
Vivo/Telemig surpassed Claro in net adds in the 4Q07. |
The results of Jan/08 indicate that the dispute for leadership in net adds in 2008 must continue being between Claro and Tim.
ARPU: BrT surpass Tim
| ARPU R$ | 1Q07 |
2Q07 |
3Q07 |
4Q07 |
2007 |
| BrT | 33.4 |
33.8 |
34.9 |
34.6 |
34.6 |
| TIM | 34.4 |
34.6 |
34.0 |
34.5 |
34.4 |
| Vivo | 30.0 |
29.9 |
30.8 |
31.1 |
30.4 |
| Amaz Cel | 28.4 |
28.9 |
28.7 |
30.4 |
29.1 |
| ARPU Brasil | 29.3 |
29.4 |
29.6 |
30.0 |
29.7 |
| Telemig | 27.6 |
29.2 |
29.1 |
28.9 |
28.7 |
| Claro | 27.0 |
27.0 |
27.0 |
28.0 |
28.0 |
| Oi | 21.6 |
21.5 |
22.3 |
22.7 |
22.7 |
Brasil Telecom (BrT) surpassed Tim and got the leadership in monthly average revenue per client (ARPU) in the 4Q07 and in the year of 2007.
Tim takes a small advantage over the other operators for having built its revenue from services revenue from long distance (41). That does not occur with others. It can lead in ARPU in case BrT be acquired by Oi
The joint venture of Telemig would have little effect on the ARPU of Vivo. |
Net Revenue: Vivo wins in 2007 and Tim in 4Q07
Both operators, Vivo and Tim, divided the leadership during the 4 quarters of 2007, but Vivo won the leadership in net income in the year of 2007 with R$ 12,493 million against R$ 12,442 million of Tim.
| R$ Millions | 1Q07 |
2Q07 |
3Q07 |
4Q07 |
2007 |
Revenue Share 2007 |
| Vivo | 2,851 |
3,021 |
3,249 |
3,372 |
12,493 |
29.2% |
| Tim | 2,843 |
3,060 |
3,163 |
3,374 |
12,442 |
29.1% |
| Claro | 2,155 |
2,431 |
2,538 |
2,864 |
9,988 |
23.4% |
| Oi | 1,000 |
1,028 |
1,063 |
1,106 |
4,195 |
9.8% |
| Telemig/Amaz | 432 |
461 |
463 |
508 |
1,864 |
4.3% |
| BrT | 385 |
429 |
449 |
483 |
1,746 |
4.1% |
Tim surpassed Vivo in services net income with R$ 11,420 millions in 2007 against R$ 11,089 millions of Vivo.
With the joint venture of Telemig, Vivo might consolidate this leadership in 2008. |
Profit
Amazônia/Telemig was leader in profit in 2007 surpassing the others in EBITDA margin (32.8%) and EBIT margin (15%). It was surpassed in profit by Oi, which had, negative EBIT margin in the year.
| 2007 | EBITDA margin |
EBIT margin |
Profit (loss) |
| Amaz/Telemig | 32.8% |
15.0% |
148 |
| Oi | 27.5% |
-6.3% |
456 |
| Vivo | 25.1% |
1.9% |
-99 |
| Claro | 25.0% |
-6.7% |
N.D. |
| TIM | 23.1% |
2.0% |
76 |
| BrT | 3.1% |
-38.3% |
-182 |
| Brazil | 24.1% |
4.4% |
- |
These positions suffered small changes in 4Q07 with Oi surpassing the Amaz/Telemig in EBITDA margin. The biggest growth in net adds submitted by the Amaz/Telemig in 4Q07 contributed to the fall of its EBITDA margin in the quarter. That wasn't higher because of the gains submitted with reversal provision of the ICMS (Tax) in Pará.
| 4Q07 | EBITDA Margin |
EBIT Margin |
Profit (R$ Millions) |
| Oi | 31.8% |
15.9% |
216 |
| Telemig/Amaz | 29.8% |
19.7% |
42 |
| TIM | 27.1% |
9.3% |
183 |
| Vivo | 26.9% |
13.6% |
28 |
| Claro | 23.6% |
-0.7% |
ND |
| BrT GSM | 2.1% |
-18.6% |
-51 |
Notice Vivo, Tim and Oi in the 4Q07 the effort to improve the outcome of the year. Tim went from a loss of R$ 122 million in 3Q07 to a profit of R$ 183 million in 4Q07. This is the first time, since 2004, that Tim ends the year with profit. BrT got loss in all quarters of 2007.
In 2008, with investments to the entrance into new markets mainly by Oi and Vivo, with the implantation of 3G, the operators will have difficulties to improve their profitability in relation to those presented in 2007.
Quality: Telemig/Amazônia leadership
Telemig/Amazonia Celular was the leader in 2007. It led in all previous quarters, but had no problems with the 4Q07 with the Telemig Banda E that didn't work as targets for the indicators SMP3 and SMP5 in dec/07 (more details).
The leadership in 4Q07 was with Claro that reached all the goals for the first time this year.
| Attended Goals | 1Q07 |
2Q07 |
3Q07 |
4Q07 |
2007 |
| Telemig/Amaz | 98.0% |
100% |
100% |
83.3% |
98.0% |
| Vivo | 91.0% |
97.2% |
99.2% |
99.7% |
96.5% |
| Claro | 92.3% |
95.1% |
98.1% |
100% |
96.2% |
| Brazil | 94.3% |
96.5% |
97.1% |
95.9% |
95.5% |
| BrT GSM | 96.0% |
94.4% |
96.0% |
93.9% |
95.6% |
| Tim | 97.9% |
95.9% |
94.9% |
93.5% |
93.7% |
| Oi | 79.5% |
100% |
84.8% |
86.4% |
87.9% |
With the sale of Telemig to Vivo a disputa pela liderança em qualidade em 2008 deve se dar entre Vivo e Claro.
With the sale of Telemig for Vivo the dispute by quality leadership in 2008 should be given between Vivo and Claro.
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