What is Vivo doing to overcome other operators in Net Additions?
Vivo, which led mobile growth in 3Q09 (more details), confirmed in October this leadership with net adds 51% higher than Claro's (operator in the second position in the ranking).
By these results, Vivo is inverting a historical trend of losing market share, gaining 0.13 percentage points over the last months.
What is Vivo doing to overcome other operators in net additions?
Vivo's recipe seems simple.
For a long time Vivo has been focusing in quality. In Oct/09 the company accomplished with 100% of Anatel's quality targets.
Vivo presented also slower complaining in comparison with Oi, Claro and Tim (more details).
Consequently, in 3Q09 Vivo's monthly churn was lower than other operators'.
Thousands | 3Q09 |
Oct/09 |
||
Monthly Churn |
Cancellation* |
Net Additions |
Gross Additions |
|
Vivo | 2.5% |
1,221 |
734 |
1,955 |
Claro | 2.9% |
1,226 |
484 |
1,710 |
TIM | 3.6% |
1,426 |
269 |
1,694 |
Oi | 3.8% |
1,323 |
424 |
1,748 |
* estimated considering in Oct/09 the same 3Q09 monthly churn.
Lower churn means lower number of cancellation in the month, what contributes to raise net adds (difference between gross additions and cancellations).
Vivo led net adds in Region I and reached the second position in other two regions.
Oct/09 | Region I |
Region II |
Region III |
Brazil |
Vivo | 417 |
105 |
211 |
734 |
Claro | 218 |
157 |
109 |
484 |
Oi | 75 |
24 |
326 |
424 |
TIM | 191 |
52 |
25 |
269 |
Vivo's good result in Region I was motivated mainly by the good performance presented in Minas Gerais, where the company got net adds of 223 thousand mobile accesses in Oct/09. Over the last 5 months, Vivo reached an average of 79& of monthly net adds in the state.
Claro, which was in the 2nd position in net adds in 3Q09, kept this position in Oct/09. Oi kept the performance seen in the previous months leading growth in São Paulo (region III) and presenting low growth in other regions, Tim, presented fall in its net adds, mainly in regions II and III.
Oi continues to lead in net adds accumulated in the year, counting 5.2 million mobile accesses, followed by Vivo with 4.6 millions.
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