What will change in Vivo's strategy in 2011?
Vivo presented expressive results in 2010.
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Vivo:
Everything seemed to be good to Vivo, indicating that the company didn't need to make any change in the company's strategy in 2010.
Vivo's strategy in 2010 combined the leadership in market share and focusing in service quality, coverage and 3G, with competitive plans. A strong brand results in a smaller churn when compared to the others', it helps in net adds (more details).
A deeper analysis shows, however, differences in Vivo's performance between the period from Jan to May/10, when the operator led mobile growth for five months in a roll consecutively, and other seven months of the year (Jun-Dec/10).
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Vivo's 3G strategy produced good results along the year, increasing its participation (share) in data terminal and WCDMA handsets net adds in the last 7 months.
The difference in performance happens mainly in prepaid, in which Vivo led in net adds in the first five months of the year and fell to the third position in the others seven months of the year.
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Tim conquered 42.1% of the prepaid net adds in the period from Jun to Dec/10, result of its plan "Infinity pré", which offers local and long distance calls (on-net) for R$ 0.25 by call. Vivo's and other carriers' plans for service plans for the prepaid segment doesn't have de same attractiveness of TIM's plan.
As a result, TIM overtook Vivo in 2011, in this segment.
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The differnce between Vivo's and Tim's prepaid which was 7.5 million accesses in May/10, dropped to 4.1 million in Dec/10. Kept this trend, TIM is likely to overtake Vivo in prepaid in Aug/11.
The situation in the postpaid sector is less critical, but deserves some comments. After leading growth postpaid net adds along the first nine months of 2010, Vivo was surpassed by Claro in the last three months of the year.
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