A more equilibrated board of cellular leadership in 3Q11
By Debora Vieira
The third quarter of 2011 (3Q11) presented a more equilibrated board of leaders if compared with the previous quarters, with Vivo leading three indicators, TIM leads two and Claro and Oi one each.
| Indicator | Leader in | ||||
4Q10 |
1Q11 |
2Q11 |
3Q11 | ||
| Cellulars | Market Share | Vivo |
Vivo |
Vivo |
Vivo |
| Growth | Net Adds | TIM |
Oi |
TIM |
TIM |
| Revenue | Net Revenue | Vivo |
Vivo |
Vivo |
Vivo |
| Revenue by Client | ARPU | Vivo |
Vivo |
Vivo |
Vivo |
| Profitability | EBITDA Margin | Vivo |
Vivo |
Vivo |
Oi |
| Quality | Anatel's Targets | TIM |
TIM |
Vivo |
TIM |
| Coverage | Covered Population | Vivo |
Vivo |
Claro |
Claro |
Note: Groups' net revenue considers revenue eliminations between the companies of the Group.
Since 2007 Teleco keeps track of mobile operators' performance in Brazil which is measured through these seven indicators. Since 2008 this board doesn't show such equilibrium, with Vivo leading in three indicators and the others leading at least one.
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The following presents the results for each one of these indicators in 3Q11.
Market Share: Vivo leads, but TIM is the only to gain market share in the year
Vivo, the biggest cellular operator in Brazil, ended 3Q11 holding 67.0 million mobile accesses and market share of 29.49%.
 |
TIM overtook Claro in 3Q11 and reached the second position in the Brazilian market share. Vivo and TIM were the only ones to gain market share in 3Q11. Only TIM gained market share in the year.
| - | Market Share | Market Share Variation (percentage points) |
|||||
3Q10 |
4Q10 |
1Q11 |
2Q11 |
3Q11 |
p.p. (Qua) | p.p. (4Q10/2Q11) | |
| Vivo | 30.14% |
29.71% |
29.48%
|
29.47%
|
29.49%
|
0.02
|
-0.22 |
| TIM | 24.52% |
25.14% |
25.11% |
25.55% |
26.04% |
0.49
|
0.90 |
| Claro | 25.47% |
25.44% |
25.39% |
25.55% |
25.30% |
-0.25 | -0.14 |
| Oi | 19.51% |
19.35% |
19.69% |
19.10% |
18.84% |
-0.26 |
-0.51 |
| - | Market Share Leader in 3Q11 | ||
Region |
State* |
Area Code (DDD) |
|
| Vivo | I, II and III | 12 | 29 (-1) |
| Claro | - | 6 | 17 (+1) |
| Tim | - | 5 (-2) | 15 |
| Oi | - | 4 (+2) | 6 |
 |
But, in prepaid, Tim is gaining market share and can overtake Vivo by the end of 2011. The difference which separates these two companies inside this segment dropped from 4.1 million in 2010 to 1.1 million in 3Q11.
 |
Growth: TIM reaches leadership
TIM led cellular growth in the quarter (3.7 million) and in the accumulated of the year (8.2 million from January to November).
| - | Net Adds (thousands) |
|||
1Q11 |
2Q11 |
3Q11 |
Accumulated in the year |
|
| TIM | 1,821 |
2,676 |
3,685 |
8,182 |
| Vivo | 1,769 |
1,988 |
2,989 |
6,746 |
| Claro | 1,800 |
2,096 |
1,979 |
5,875 |
| Oi | 2,170
|
66 |
1,332 |
3,569 |
Vivo stayed in the second position in net adds and Oi, which had led growth in 1Q11, presented low performance in the following quarters.
TIM improved its postpaid performance, but 83% of its net adds were gotten in prepaid.
 |
Net Revenue: Vivo keeps the advantage over other operators
 |
Vivo remained in the leadership holding revenue of R$ 5.4 billion in 3Q11 and growth of 7.2% in the quarter. Vivo and Tim had the biggest annual growth in revenue (16.4% and 19.8% respectively), while Claro's and Oi's revenues increased 7.0% and 7.1% in comparison with 3Q10.
| R$ Billion | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 | Growth Qua | Growth. 3Q11/3Q10 |
| Vivo | 4,233 | 4,402 | 4,619 | 4,863 | 4,812 | 5,015 | 5,376 | 7.2% |
16.4% |
| Tim |
3,100 |
3,328 |
3,433 |
3,671 |
3,501 |
3,983 |
4,114 |
3.3% |
19.8% |
| Claro | 2,769 | 2,902 | 2,933 | 2,772 | 2,958 | 3,060 | 3,138 | 2.5% |
7.0% |
| Oi | 2,487 | 2,571 | 2,652 | 2,745 | 2,517 | 2,784 | 2,840 | 2.0% |
7.1% |
Note: TIM's revenue was estimated by Teleco and doesn't include Intelig and TIM Fixed.
Data segment was responsible for most of the growth gotten in the Vivo's net revenue, increasing 43.2% in 3Q11/3Q10. At TIM, handsets net revenue increased 87.5% in the period hitting R$ 485 million in 3Q11.
ARPU: Vivo amplifies its leadership in 3Q11
 |
The growth un data revenue, encouraged by the investments in 3G, helped Vivo to amplify the leadership in ARPU. Vivo's data ARPU (R$ 6.1) represented 23.3% of the total ARPU.
| ARPU (R$) | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 |
| Vivo | 24,8 | 25,0 | 25,3 | 25,9 | 24,6 |
25,1 |
26,2 |
| Oi | 21,8 | 22,4 | 22,9 | 23,5 | 20,7 | 21,6 | 22,2 |
| TIM | 24,0 | 24,2 | 23,5 | 23,3 | 20,8 | 21,6 | 21,2 |
| Claro | 20,0 | 20,0 | 19,0 | 18,0 | 18,0 | 17,0 | 17,0 |
| ARPU Brazil | 22,8 | 23,0 | 22,8 | 22,8 | 21,2 | 21,5 | 21,8 |
Note: Claro's values consider the integration with Embratel which eliminates common revenues.
Oi overtook TIM in ARPU in 3Q11.
TIM, Vivo and Claro presented growth in its minutes used monthly by users (MOU) in 3Q11.
| Minutes | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 |
| TIM | 100 | 110 | 123 |
129 |
126 |
127 |
130 |
| Vivo | 116 | 114 | 115 | 118 | 114 | 119 | 127 |
| Claro | 92 | 93 | 100 | 96 | 90 | 84 | 109 |
| MOU Brazil | 103 | 106 | 113 | 114 | 110 | 110 | 122 |
Note: Oi doesn't release this indicator.
The growth of MOU showed by Claro indicates that the operator was stricter in its criteria to turn off inactive clients in 3Q11.
Profitability: Oi leads in EBITDA Margin
Oi led profitability in 3Q11, being the only group to get EBITDA margin superior to 35%. This result indicates that the operator continues to focus profitability instead of growth.
 |
| EBITDA Margin | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 |
| Oi | 33.9% | 36.2% | 38.1% |
31.2% |
28.6% |
35.0% |
35.6% |
| Vivo/Telefonica | 34.0% | 36.4% | 35.9% | 37.9%
|
35.6%
|
37.2%
|
34.2% |
| TIM | 28.7% | 28.4% | 28.2% | 30.6% | 27.5% | 26.8% | 26.4% |
| Claro/Embratel | 33.9% | 29.2% | 31.1% | 27.3% | 28.5% | 27.9% | 26.2% |
Note: Since 2Q11 changes were done in the criteria to measure profitability, starting to be considered the group's EBITDA margin gathering fixed and mobile operations. It was necessary to make this change because Vivo, Claro and TIM release this indicator only this way.
Quality: TIM leads in 3Q11
TIM led in accomplishing Anatel's quality targets in 3Q11 with 99.9% of met targets, followed closely by Vivo with 99.4%.
Accomplished Quality Targets |
|||||||
| - | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 |
| TIM | 98.5% |
99.0% |
99.9% |
100% |
99.8% |
99.9% |
99.9% |
| Vivo | 99.9% |
99.9% |
99.4% |
99.1% |
99.7% |
100% |
99.4% |
| Claro | 98.7% | 98.5% | 97.8% | 96.1% | 97.0% | 95.5% | 92.8% |
| Oi | 82.8% | 80.6% | 79.1% | 80.6% | 84.5% | 94.8% | 92.1% |
Among these four operators, Vivo presented (in 3Q11) the smallest index of complaints and the best performance with user (IDA).
Coverage: Claro keeps the leadership
Claro kept the leadership in covered population (90.6%), even not having increased the number of covered cities in the quarter. Vivo continues to lead in quantity of covered cities.
| Covered Cities | Covered Population | |||||||
| Operadora | 4Q10 | 1Q11 | 2Q11 | 3Q11 | 4Q10 | 1Q11 | 2Q11 | 3Q11 |
| Claro | 3,478 | 3,486 | 3,568 | 3,568 | 90.1% | 90.2% | 90.6% | 90.6% |
| Vivo | 3,646 | 3,659 | 3,665 | 3,683 | 90.2% | 90.3% | 90.3% | 90.5% |
| Tim | 3,205 | 3,209 | 3,209 | 3,212 | 89.5% | 89.5% | 89.5% | 89.6% |
| Oi | 2,913 | 2,913 | 2,913 | 2,979 | 83.2% | 83.2% | 83.2% | 83.3% |
Source: Anatel
Vivo leads 3G coverage reaching (in 3Q11) 1,450 cities, followed by Claro (494), TIM (281) and Oi (213).
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