What happened to mobile market in the last 6 months?
February was the sixth consecutive month led by Vivo in mobile growth, with net adds of 449 thousand mobile accesses, followed by Tim (298 thousand), Claro (265 thousand) and Oi (155 thousand).
Along these 6 months, Vivo gained market share (0.5 percentage points) and amplified its advantage over the other operators.
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Claro, second in net adds, had a small gain in market share during this period (0.1 p. p.) while Tim (0.2 p. p.) and Oi (0.4 p. p.) lost.
Vivo's leadership in net adds is the result of a group of factors, one of them is the churn (cancellation rate) lower than in other operators (more details). This rate isn't uniform, however, in all the country.
The table below shows that Vivo leads in market share in 5 of the 10 areas in which were divided the Brazilian mobile market (SMC).
The areas from 3 to 9 are stable with the market leader, leading also in net adds over the last 6 months. In these areas, except in the Midwest (7), the leader is still Band A operator, first to enter in the market.
| SMC areas | Area participation in the Brazilian total |
Leader |
Net Adds Leader oner the last 6 months |
|
1 |
SP 11 | 14.6% |
Vivo |
Oi |
2 |
SP Interior | 10.9% |
Claro |
Vivo |
3 |
RJ/ES | 11.5% |
Vivo |
Vivo |
4 |
MG | 10.3% |
Vivo |
Vivo |
5 |
PR/SC | 8.9% |
Tim |
Tim |
6 |
Rio G. do Sul | 6.3% |
Vivo |
Vivo |
7 |
Midwest | 10.4% |
Claro |
Claro |
8 |
North | 6.5% |
Vivo |
Vivo |
9 |
BA/SE | 7.0% |
Vivo |
Vivo |
10 |
Northeast | 13.6% |
Oi |
Tim |
The bigger competition happens in 3 areas with more mobile accesses: São Paulo (1 and 2) and Northeast (10).
In the metropolitan region of São Paulo, area 1 (SP 11), Vivo faces Oi's fierce competition which closed Feb/10 with market share of 16.3%. Oi's net adds over the last 6 months were 112% higher than Vivo's.
Net Adds over the last 6 months |
|
| thousands | SP (11) |
| Oi | 1,146 |
| Vivo | 543 |
| Claro | 68 |
| TIM | 54 |
In the interior of São Paulo, however, this equation is inverted. Vivo's leading in net adds and decreasing the distance which separates the company from the leader Claro.
Net Adds over the last 6 months |
|
| thousands | SP interior |
| Vivo | 561 |
| Claro | 352 |
| Oi | 335 |
| TIM | 280 |
This competition is also strong in the Northeast region with the leader Oi is presenting low performance and being surpassed in net adds by other operators, including Vivo which is a new player in this area having smaller coverage if compared with other mobile carriers.
Net Adds over the last 6 months |
|
| thousands | Nordeste |
| Tim | 774 |
| Claro | 652 |
| Vivo | 205 |
| Oi | 99 |
In sum, Vivo is well positioned in the main markets and has all the conditions to keep the leadership in net adds in 2010. Kept the current trends, Vivo's market share will be superior than 30% and will overtake Oi in region I.
Region I
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