Performance of the 3 biggest Telecom groups of Brazil in the 1Q08
With the announcement of the purchase of Brasil Telecom by Oi starts a new scenario of telecommunications in Brazil in which 3 big groups dispute leadership:
Situation in 2007
The following table presents the participation in the gross revenue and market share of fixed telephones, cellulars, broadband and pay TV of these groups in 2007. (leaders of each service in blue)
| Groups in 2007 | Gross Revenue | Market Share (Accesses) |
|||
| Fixed | Cellular | Broadband | Pay TV | ||
| Oi/BrT | 30.2% | 56.7% | 17.9% | 40.7% | 1.0% |
| Telefonica/Vivo | 29.6% | 30.5% | 30.9% | 26.6% | 4.3% |
| Claro/Embratel/Net | 20.7% | 8.2% | 25.0% | 19.2% | 48.3% |
| Tim | 12.4% | - |
25.8% | - | - |
| Others | 7.1% | 4.6% | 0.4% | 13.5% | 46.4% |
| Total | 100% | 100% | 100% | 100% | 100% |
Note: Vivo includes Telemig. Oi includes Amazônia celular and Way TV. Net includes BIGTV. Telefonica includes DTH and MMDS acquired from TVA. In gross revenue are added the total revenues of the operator group.
Performance in the 1Q08
The Group of Telefonica/Vivo surpassed Oi/BrT in net revenue in the 1st quarter of 2008 (1Q08).
Note: Vivo includes Telemig and Oi includes Amazônia celular (estimated by Teleco in the 1Q08)
The Group of Telefonica/Vivo was the only to grow in net revenue in the 1Q08. The Group of Claro/Embratel/Net had the bigger growth (18.3%) in 12 months (1Q08/1Q07).
| Net Revenue (R$ Millions) |
1Q07 |
4Q07 |
1Q08 |
Quarter |
12 months |
| Telefonica/Vivo* | 6,874 |
7,485 |
7,529 |
0.6% |
9.5% |
| Oi/Brt* | 7,112 |
7,492 |
7,371 |
-1.6% |
3.6% |
| Claro/Embratel/Net | 4,925 |
5,892 |
5,826 |
-1.1% |
18.3% |
* Vivo includes Telemig and Oi includes Amazônia, revenue estimated by Teleco.
The group Oi/BrT had the worse performance in the quarter and in the year. The low growth of the group is explained by the lower participation of cellular in its total revenue (25.7%), against 49% in Telefonica/Vivo and 45.4% in the Claro/Embratel/Net.
Oi/BrT seems to know about this disadvantage. It led cellular growth in the 1st quarter of 2008 (1Q08) with net adds of 1.6 million cellulars (more details).
In fixed telephony, Oi/BrT and Telefonica continued losing clients in the 1Q08.
| Fixed Accesses in Service (Thousands) |
1Q08 |
∆Quarter |
∆ 12 months |
| Oi/BrT | 22,105 |
-156 |
-519 |
| Telefonica | 11,932 |
-27 |
-89 |
| Embratel | 3,574 |
339 |
1,249 |
Embratel is growing in this segment, with "Livre" (Wireless Telephone) and Net Fone (VOIP).
Embratel, with the acquisition of Net, became the only of the 3 groups to be an important presence in the segment of pay TV. Net is the market leader and its subscribers base grew 15% in the yeara (1Q08/1Q07). The association with Net also helped Embratel to grow in fixed telephony (VOIP) and broadband.
Oi/BrT leads broadband in net adds, but Net was who had bigger growth (38%).
| Thousands |
1Q08 |
∆Quarter |
∆ 12 months |
∆ 12 months |
| Oi/BrT* | 3,330 |
189 |
765 |
23% |
| Telefonica | 2,166 |
98 |
477 |
22% |
| Net** | 1,588 |
109 |
604 |
38% |
* includes Way TV. **Embratel don't publish broadband accesses.
In the 1Q08 in profit, the best result compared to EBITDA margin was Group Claro/Embratel/Net with 38.6%, followed by the group of Telefonica/Vivo (37.6%) and Oi/BrT (35.5%).
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