Vivo amplifies its leadership inside postpaid market
Brazil is the 5th mobile market in the world, this fact is attracting operators and suppliers from all over the world which are seeking for markets in expansion.
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However, the Brazilian market is composed, mostly, for prepaid mobile accesses (82%) and users with low purchasing power. It interferes in the consumption of value added services. The consumption in this segment requires different strategies like the ones used today by operators in voice service sales.
Most of the time, we don't notice the size of the Brazilian postpaid market, which reached 33.7 million mobile accesses in Aug/10. This market is bigger than Venezuela's (28 million), Canada (22 million) and Portugal (16 million). With 30.4 million postpaid accesses gotten in 2009, Brazil would reach the 31th position among the countries that hold the biggest number of cellulars in the world at UIT's ranking.
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Vivo occupies the best position in this market after conquering 62.6% of the postpaid net adds in the value accumulated along the year (Jan-Aug/10).
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With this result Vivo's postpaid market share increased from 32.2% in Dec/09 to 35.3% in Aug/10. Claro and Oi lost market share in this period, while Tim remained stable.
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The leadership in quality and in 3G has helped Vivo to reach this result. Part of these new postpaid users has 3G modems with data plans. This growth in postpaid is likely to confirm Vivo's leadership in ARPU in 3Q10, motivated by the growth in data revenue.
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Note: Claro doesn't release its data revenue.
We can say that inside the postpaid market there's also Nextel which had 2.9 million mobile accesses in 2Q10 and accumulated 385 thousand net adds in the first six months of the year.
You could ask:
Will Vivo continue to amplify its postpaid market share?
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