Vivo consolidates leadership in 3Q09
By Débora Vieira
In the 3rd quarter of 2009 (3Q09), Vivo consolidated its leadership in the Brazilian mobile market leading five among 7 indicators selected by Teleco.
Vivo remains leader in market share, revenue, profitability and quality, and conquered the leadership in net adds in the quarter. Claro and Tim kept leadership in coverage and ARPU respectively.
| Leader in | Indicator |
Leader in 2008 |
Leader in 1Q09 |
Leader in 2Q09 |
Leader in 3Q09 |
| Cellulars | Market Share |
Vivo |
Vivo |
Vivo |
Vivo |
Revenue per Client |
ARPU |
Tim |
Vivo |
Tim |
Tim |
| Revenue | Net Revenue |
Vivo |
Vivo |
Vivo |
Vivo |
| Profitability | EBITDA Margin |
Vivo |
Vivo |
Vivo |
Vivo |
| Quality | Anatel's target |
Vivo |
Vivo |
Vivo |
Vivo |
| Growth | Net Adds |
Claro |
Oi |
Oi |
Vivo |
| Coverage | Covered Population |
Claro |
Claro |
Claro |
Claro |
Note: Tge order doesn't reflect indicators importance. CTBC and Sercomtel weren't included. Oi includes BrT.
Since 2007, Teleco keeps track of mobile operators performance in Brazil, measured through these 7 indicators. The following analyses each one of these indicators in 3Q09.
Growth: Vivo conquers leadership in 3Q09
Vivo conquered the leadership in net adds in the 3rd quarter of 2009 (3Q09), what didn't happen since 2Q09. The low churn presented by the operator in 3Q09 was the main responsible for this conquer.
Vivo stayed in the 2nd position in gross adds. However, as Vivo got the lowest number of cancellations, the company was 1st in net adds in the quarter.
| Thousands | Gross Adds |
Monthly Churn |
Cancellations |
Net Adds |
| Vivo | 5,540 |
2.5% |
3,511 |
2,028 |
| Claro | 5,314 |
2.9% |
3,522 |
1,792 |
| Tim | 5,859 |
3.6% |
4,085 |
1,774 |
| Oi | 4,754 |
3.8% |
3,868 |
886 |
Tim led in gross adds, but presented also the highest number of cancellations, what drove the company to the 3rd position in net adds.
Oi, which had led cellular growth in 1Q09 and in 2Q09, lost strength in 3Q09 in Regions I and II (more details).
Oi still keeps the leadership in the accumulated in the year.
Market Share: Vivo consolidate itself in the leadership
Vivo is the biggest mobile carrier in Brazil counting 48.8 million mobile accesses and market share of 29.4%.
 |
Vivo, Claro and Tim gained market share in the quarter. Oi lost 0.3 percentage points due to the negative growth in Region I. Oi led, however, mobile growth in São Paulo (Region III) in 3Q09.
Vivo is leader in market share in two regions, 12 states and 28 local areas (area codes).
Leader in Market Share 3Q09 |
|||
Region |
State |
Area Code |
|
| Vivo | II and III |
12 |
28 |
| Claro | - |
4 |
12 |
| Tim | - |
6 |
19 |
| Oi | I |
5 |
8 |
In 3Q09, Oi lost the leadership in market share in the state of Minas Gerais to Vivo and in area code 86 (Piauí) for Tim.
ARPU: Tim resumes the leadership
Tim remains in the ARPU leadership, with a small margin in comparison with Vivo.
| ARPU (R$) | 4Q08 |
1Q09 |
2Q09 |
3Q09 |
| Tim | 29.9 |
26.0 |
26.6 |
26.5 |
| Vivo | 29.1 |
27.0 |
26.3 |
26.4 |
| Claro | 25.0 |
23.0 |
23.0 |
23.0 |
| Oi | 25.0 |
21.1 |
21.0 |
22.2 |
| ARPU Brazil | 27.4 |
24.5 |
24.4 |
24.7 |
Note: Oi includes BrT.
Tim kept the leadership in ARPU through an accounting maneuver in which the company started to classify as "other service revenue" the fines for customers cancellations, which used to be set in the operational expenditures accounting. By this reclassification, other Tim's service revenues grew from R$ 30 million in 2Q09 to R$ 130 million in 3Q09.
Brazilian ARPU presented slight recovery in the quarter. Tim was the leader in monthly minutes of use per user (MOU) with 90 minutes, followed by Vivo and Claro with 89 and 86 minutes respectively. Oi didn't release this indicator (more details).
Net revenue: Vivo amplifies the advantage in relation to Tim
Vivo amplified its advantage in "revenue share" in comparison with Tim (in the 2nd position).
| 3Q09 | Net Revenue (millions) |
Revenue Share % |
||
3Q09 |
2Q09 |
3Q08 |
||
| Vivo | 4,088 |
31.6% |
31.7% |
33.0% |
| Tim | 3,407 |
26.3% |
26.6% |
27.0% |
| Claro | 3,082 |
23.8% |
23.7% |
23.8% |
| Oi | 2,343 |
18.1% |
17.4% |
15.7% |
Note: Oi includes BrT.
Claro and Oi increased their revenue share in 3Q09. The entrance in São Paulo, which happened one year ago, is the reason for this growth in Oi's revenue share.
Profitability: Vivo's EBITDA margin of 30.4%
Vivo kept the leadership in EBITDA margin and increased its net profit to R$ 172 million in 2Q09. Oi and Tim, which got negative EBIT margin in 1Q09, recovered in this quarter.
| - | EBITDA Margin |
Profit (loss) |
||
3Q09 |
2Q09 |
3Q08 |
2Q09 |
|
| Vivo | 34.4% |
30.4% |
32.5% |
340 |
| Tim | 22.7% |
22.3% |
23.4% |
61 |
| Claro | 22.0% |
24.8% |
22.9% |
- |
| Oi | 30.5% |
19.7% |
27.8% |
262 |
Note: Oi includes BrT.
Quality: Vivo continues leading
Vivo conquered the leadership in Anatel's quality targets in 1Q08 and didn't lose the 1st position.
Accomplished targets |
1Q08 |
2Q08 |
3Q08 |
4Q08 |
1Q09 |
2Q09 |
3Q09 |
Vivo |
99.0% |
99.7% |
99.6% |
99.6% |
99.9% |
99.9% |
99.4% |
Tim |
92.5% |
91.5% |
92.3% |
90.2% |
95.7% |
98.9% |
95.8% |
Claro |
98.3% |
98.8% |
98.5% |
96.3% |
88.0% |
94.6% |
89.1% |
Oi/BrT |
93.6% |
93.3% |
92.4% |
89.4% |
91.4% |
83.9% |
82.7% |
Tim and Claro, which had recovered in 2Q09, presented again fall in their performance in 3Q09.
Coverage: Claro keeps leadership
Claro is the coverage leader, covering 91.4% of the Brazilian population and e 64.1% of the cities.
| 3Q09 | Cities |
% Cities |
Population (millions) |
% Pop |
| Claro | 3,564 |
64.1% |
175 |
91.4% |
| Vivo | 3,475 |
62.5% |
171 |
89.4% |
| Tim | 2,968 |
53.3% |
169 |
88.5% |
| Oi | 2,788 |
50.1% |
164 |
85.7% |
Source: Anatel
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