Brazil has a population of 189 million, almost 5 times more than Argentina 39 million, consequently, more quantity of cellulars accesses, fixed and broadband.
| 1Q08 Million |
Argentina |
Brazil |
||||
Cellular |
Fixed |
Broadband |
Cellular |
Fixed |
Broadband |
|
| Accesses | 42 |
9 |
2 |
126 |
39 |
8 |
| Density | 106 |
22 |
6 |
66 |
21 |
4 |
Argentina surpassed Brazil in density of accesses cellulars, fixed and broadband.
Contributes to this the fact that Argentina has a GDP per capita (PPP), which considers the differences in the parity of purchasing power, greater than Brazil. In other words, greater purchasing power.
| 2007 | Brazil |
Argentina |
GDP per Capita (US$) |
6,938 |
6,606 |
PIB per Capita (PPP*) (US$) |
9,695 |
13,308 |
*purchasing-power-parity
Density of Cellular
The biggest "gap" between densities of these two countries is on the cell phone. In April/08 the density of cell phone in Argentina was 107 cell./100 inhab. While Brazil was still with 68 cell./100 inhab ..
The density of cell phone in Argentina grew faster rate in 2003, after the economic recovery, and surpassed Brazil in 2004. (more details)
Argentina joint in 2007 in the group of about 50 countries with over 100 cell./100 inhab., which comprises most European countries, including Russia (120 cell/100 inhab.) which has a population similar to Brazil. (more details)
Until 2007, Argentina presented rates of cellular growth bigger than Brazil.
This trend was reversed in 2008. In the first 4 months of the year, Brazil had a growth (5.6%) higher than Argentina (4.6%).
Despite differences in rates of growth and density. Brazil and Argentina have similar operational indicators in cell phone.
| 1Q08 | Cellulars (Thousands) |
% pre paid |
ARPU US$ |
MOU |
| Brazil | 125.811 |
80.9% |
15.7 |
84 |
| Argentina | 41.737 |
90.0%* |
11.4 |
90 |
* % of pre-paid the joint of the 3 main operators is 74%
There is a difference about the SMS usage. In Argentina is 83 SMS/cell/month while in Brazil is lesser than 10 SMS/cell/month.
Cellular Operators
The differences of density don't seem to be related to the groups which concentrate most part of the cellulars in each country.
América Móvil (Claro), Telecom Itália (Tim/Personal) and Telefonica (Vivo/Movistar) are the biggest cellular groups of Brazil and Argentina.
There seems, however, a difference of strategy of these groups in each of these countries.
In Argentina, the market leader Claro seems to be giving priority to winning pre-pay customers more than others. They are pre-paid 88.4% of their cell phones, while Movistar and Personal remained a target of 65%.
| 1Q08 | Argentina |
Brazil |
||||
% pre paid |
ARPU US$ |
MOU |
% pre paid |
ARPU US$ |
MOU |
|
Vivo/Movistar |
64.5% |
11.8 |
64 |
80.9% |
16.9 |
77 |
Tim/Personal |
65.8% |
12.6 |
84 |
79.2% |
16.9 |
94 |
Claro |
88.4% |
10.1 |
119 |
80.8% |
14.9 |
81 |
This strategy is reflected in a lower ARPU and bigger MOU for Claro than Movistar and Personal.
The same hasn't happened in Brazil where the three operators (Vivo, Claro and Tim) have the same range of % pre-paid, ARPU and MOU.
Density of Fixed and Broadband
The densities of fixed accesses have been stable in both countries.
Dens. Accesses in service |
2004 |
2005 |
2006 |
2007 |
1Q08 |
|
Argentina |
21.0 |
21.7 |
22.2 |
22.6 |
22.5 |
Brasil |
21.7 |
21.5 |
20.7 |
20.6 |
20.6 |
In broadband, the density of Argentina has grown more than Brazil.
Dens. Broadband |
2004 |
2005 |
2006 |
2007 |
1T08 |
|
Argentina |
1.4 |
2.4 |
4.0 |
6.0 |
ND |
Brazil |
1.3 |
2.1 |
3.0 |
4.1 |
4.3 |
In 2007 the broadband accesses grow 51.6% in Argentina and 36.5% in Brazil.
Profit
Finally, we also found indicators similar to the profitability of the telecom operators in Brazil and Argentina. The EBITDA margin's average of fixed and mobile operators of both countries has been stable around 31%.
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