12/20/2010

Assessment (anticipated) about 2010: For the Telecom sector, the year was better than 2009

 

For the telecommunication sector, 2010 was better than the previous one, showing recovery over the 2009 world financial crisis.

 

In 2010, many services presented superior net adds when compared with the amount of net adds registered in 2009. However, the market didn't resume to 2008 levels, except in Pay TV which showed strong growth in 2010 helped by the satellite segment (DTH).

 

 

Note: 2010 data were projected by Teleco

 

 

Anatel's preliminary data indicate that Brazil ended November/10 with 197.5 million mobile accesses. The net adds accumulated from Jan-Nov/10 reached 23.6 million cellulars, overtaking the 23.3 million net adds gotten in the whole previous year.

 

In 2010, monthly net adds surpassed 2009's in eight of the first eleven months of the year. In Nov/10, net adds reached 3.1 million mobile accesses, it was twice bigger than the 1.7 million registered in Nov/09.

 

 

 

 

In Dec/10, mobile net adds are likely to overtake the 4.2 million gotten in Dec/09 and Brazil may end 2010 counting about 202 million mobile accesses and density of 104 cell./100 inhab., surpassing Teleco's projection which pointed that net adds would reach 26 million cellulars in 2010.

 

In 2010, Brazil exceeded the mark of 100 cell./100 inhab. and mobile broadband overtook fixed broadband, probably, ending the year with 18 million accesses.

 

The year had consolidations of the main Telecom groups operating inside the country:

• Portugal Telecom sold its participation at Vivo to Telefonica and acquired participation at Oi.
• The Mexican businessman Carlos Slim decided to incorporate Telmex and Telmex Internacional into América Móvil starting the merger process of Claro, Embratel and Net.

Anatel had a more active role along the year:

• Established that cell phones have the right to acquire unlocked handsets.
• Assigned part of the band 2.5 GHz, used by MMDS operators, for mobile broadband making room for the beginning of LTE in Brazil.
• Regulated Mobile Virtual Network Operators (MVNO).
• Held the Band H auction through which Nextel broke into Brazilian cellular market.

2010 had also the Telebrás reactivation as a Government attempt to have a state-owned company among the operators in the telecom sector.

 

In general, the main groups had positive performances in 2010:

• Vivo had good performance in postpaid segment in which conquered 50% of the net adds in the year. Had a great growth in data revenue in comparison with the other carriers.
• Telefonica recovered from the problems faced in 2009 with Speedy.
• Oi adopted low growth strategy focusing in profitability. The company lost market share in the main services but got to reduce its debt.
• Claro showed medium performance along the year, growing less than Vivo and Tim and presenting reduction in the ARPU. The company accelerated its pace in the last quarter after seeing its advantage (in market share) over Tim shrink.
• Embratel and Net showed good performance along the year.
• Tim adopted an aggressive strategy and led the mobile growth by net adds, mainly for its performance in prepaid.

The year was good for carriers, but it wasn't like that for manufacturers which showed low growth in revenue and deep in handsets exportations;

 

In 2011 will take place the negotiation for the PGMU III and the approval of the former PL 29 (current PLC 116) putting an end on the limits for foreign capital in Pay TV.

 

 

You could ask:

• Was 2010 a good year for the telecommunication sector in Brazil?
• What can we expect to 2011?
• How will the new competitive scenario be in 2011?
• Will the MVNOs arrival agitate 2011?

 

 

Send us your commentary!

Click on: teleco@teleco.com.br Please let us know if you authorize the publication of your commentary.   Note: The opinions expressed in the published articles in this section are their authors' responsibility.

 

 

• © 2025 Teleco    
• Legal Aspects
• Privacy
• Our Proposal
• Contact us