Vivo is leader in 4 of the 7 main cellular indicators in 1Q08
Note: Vivo includes Telemig and Oi includes Amazônia.
Teleco started in 2007 (more details) following the performance of the cellular operators in Brazil measured by 7 indicators presented in the following table with their leaders in the 1st quarter of 2008 (1Q08).
| Leader in | Indicator |
Leader in the 1Q08 |
| Cellulars | Market Share |
Vivo |
| Coverage | Population attended |
TIM |
| Growth | Net Adds |
Oi |
Revenue p/ Client |
ARPU |
BrT |
| Revenue | Net Revenue |
Vivo |
| Profit | EBITDA Margin |
Vivo |
| Quality | Anatel Goals |
Vivo |
Note: CTBC and Sercomtel aren't included. Vivo includes Telemig and Oi includes Amazônia.
With the joint venture of Telemig/Vivo and Amazônia/Oi, these indicators started to be avaluated for the 5 main cellular operators in Brazil: Vivo, Tim, Claro, Oi and Brasil Telecom (BrT).
Vivo, which in 2007 was leader in market share and revenue (more details), in the 1Q08 reached the leadership on 4 of the 7 indicators. Tim kept the leadership in coverage and BrT in ARPU. Claro, lost the leadership in growth to Oi.
Following below a detailed analysis of these results.
Market Share: Vivo expands leadership
Vivo, with the acquisition of Telemig, expanded its leadership in market share from 27.3% (without Telemig) to 30.4% in the 1Q08.
Market Share |
Cellulars (thousands) |
Leader in Market Share 1Q08 |
|||||
Region |
State* |
DDD |
|||||
1Q08 |
1Q07 |
1Q08 |
1Q07 |
||||
| Vivo | 30.4% |
31.8% | 38,309 |
32,526 | II and III |
12 |
31 |
| Tim | 25.9% |
25.8% | 32,533 |
26,321 | - |
5 |
17 |
| Claro | 24.8% |
24.1% | 31,182 |
24,608 | - |
3 |
8 |
| Oi | 14.9% |
14.3% | 17,332 |
14,614 | I |
7 |
11 |
| BrT | 3.6% |
3.6% | 4,578 |
3,636 | - |
- |
- |
Nota: Vivo includes Telemig and Oi includes Amazônia in the 1Q08 and in the 1Q07.* State Units
Vivo is the biggest cellular operator of Brazil with 38.3 million cellulars. It's leader in market share in 2 Regions. 12 Federacy Units (UF) and 31 of the 67 local areas (DDD). (More details).
Comparing the 1Q08 with the 1Q07. Vivo (including Telemig) lost market share. The others operators won market share except BrT in which kept still.
With the joint venture of Amazônia Celular, Oi assumed leadership in the states of Maranhão and Pará in the 1Q08 surpassing Tim. Lost leadership in Amapá (that was Amazônia) to Vivo.
Coverage: Tim leads in population and Vivo attended municipalities
Tim is still the only operator present in all Federacy Units (UF). It's leader in coverage, attending 87% of the population of Brazil. Vivo, with the joint venture of Telemig, became leader in number of municipalities, attending 50% of them.
| Operator | Population |
Municipalities |
||
1Q08 |
1Q07 |
1Q08 |
1Q07 |
|
| Tim | 87%
|
86% |
48% |
44% |
| Claro | 80% |
78% |
47% |
42% |
| Vivo | 76% |
75% |
50%
|
48% |
| Oi | 41% |
- |
18% |
- |
| BrT | 21% |
21% |
15% |
14% |
Nota: Vivo including Telemig and Oi including Amazônia in the 1Q08 and 1Q07.
Growth: Oi leads 1Q08
Oi was the operators with more net adds in the 1Q08 (1,336 thousand cellulars), which led cellular growth in Brazil in february and march of 2008 (more details). This is the first time that Oi led a quarter in net adds.
Note: Vivo including Telemig and Oi including Amazônia from 1Q07 to 1Q08.
Tim was the 2nd in the 1Q08, with net adds of 1,279 thousand cellulars, followed by Claro (953 thousand) and Vivo (839 thousand).
With the joint venture of Telemig, Vivo now has net adds of 2,449 thousand cellulars in the 4Q07, surpassing Claro (2,247 thousand).
ARPU: BrT continues leading
Brasil Telecom (BrT) keot its leadership in ARPU, even with the decrease of 14.6% in the 1Q08 compared to the 4Q07. It's leader in ARPU since the 3Q07.
| ARPU (R$) | 1Q08 | 4Q07 | 1Q07 |
| BrT | 29.8 |
34.9 |
33.4 |
| Vivo | 29.5 |
30.6 |
29.7 |
| Tim | 29.5 |
34.0 |
34.4 |
| Claro | 26.0 |
27.0 |
27.0 |
| Oi | 21.3* |
22.8 |
22.2 |
Nota: Vivo includes Telemig in the 1Q07, 4Q07 and 1Q08. Oi includes Amazônia in the 1Q07 and in the 4Q07. ARPU of Oi in the 1Q08 doesn't include Amazônia, that didn't publish its results of the 1Q08.
In the 1Q08 all the operators decreased in the value of ARPU. The promotions, more aggressive, of calls -reduced prices of minutes packs- between cellulars of the same operator, certainly contributed to this result. BrT, for example, justified the decrease in the value with the change in the behavior of incoming rates (received calls) by the operator.
The quantity of monthly minutes usage per user (MOU) in Brazil increased from 78 minutes in the 1Q07 to 84 minutes in the 1Q08. Tim is leader in MOU since the 1Q07. It's MOU in the 1Q08 was 94 minutes (more details).
Net Revenue: Vivo leads all quarters since the 1Q07
With the acquisition of Telemig, Vivo also expanded leadership in net revenue. Without Telemig, Vivo had been surpassed by Tim in the 4Q07, wich didn't happened in the 1Q08.
| 1Q08 | Net Revenue (millions) |
Revenue Share % |
|
1Q08 |
1Q07 |
||
| Vivo | 3,686 |
33.3% |
32.6% |
| Tim | 2,993 |
27.0% |
29.3% |
| Claro | 2,645 |
23.9% |
22.2% |
| Oi | 1,269 |
11.5% |
11.5% |
| BrT | 426 |
3.8% |
4.0% |
Nota: Vivo includes Telemig and Oi includes Amazônia in the 1Q08 and in the 1Q07. The Revenue of Amazônia in the 1Q08 was predicted by Teleco.
Profit: Vivo leads thanks to Telemig
Vivo is the leader in EBITDA margin thanks to the joint venture of Telemig Celular.
| 1Q08 | EBITDA margin% |
EBIT margin% |
Profit (loss.) |
|
1Q07 |
1Q08 |
1Q08 |
1Q08 |
|
| Vivo | 27.7% |
35.6% |
27.9%
|
256 |
| Tim | 23.4% |
17.9% |
-1.2% |
-108 |
| Claro | 27.4% |
29.8% |
9.5% |
ND |
| Oi* | 19.0% |
34.9% |
16.1% |
154 |
| BrT | 1.1% |
3.5% |
-21.8% |
-44 |
Nota: Vivo includes Telemig and Oi includes Amazônia. Amazônia was estimated by Teleco in the 1Q08.
The EBITDA margin of 35.6% gotten by Vivo in the 1Q08 had an additional EBITDA of Telemig because of the reversal of provisions of ICMS. Except that, tha EBITDA margin of Vivo would have been 29% and the leadership would've stay with Oi in the 1Q08.
Vivo also had the best result of EBIT margin and profit.
Quality: Vivo assumes leadership
The quality leadership in the 1Q08 was led by Vivo in which reached 99.0% of all the goals. Tim, which had been leader in the 1Q07, was in the 4th placement.
| Attended Goals | 1Q08 |
1Q07 |
| Vivo | 99.0% |
92.0% |
| BrT | 98.5% |
96.0% |
| Claro | 98.3% |
92.3% |
| Tim | 92.5% |
97.9% |
| Oi | 86.4% |
90.9% |
Note: Vivo includes Telemig and Oi includes Amazônia from 1Q07 to the 1Q08.
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