América Móvil in 2011: Mexico x Brazil
América Móvil is the main Telecom Group in Latin America, having Mexico and Brazil as its main operations.
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In fixed services, Telmex is the Mexican historical operator, like the fixed telephony incumbents in Brazil, holding the leadership in fixed telephony and fixed broadband market share.
In Brazil, Embratel and Net are the operators that compete with local fixed telephony and fixed broadband incumbents. Embratel/Net is the leader in pay TV in Brazil operating 54.9% of the accesses. The company is the second in fixed broadband and third in fixed telephones.
In mobile services, América Móvil ended 2011 counting 242 million mobile accesses, being 222 million cellulars in Latin America and 20 million operated by its MVNO in the United States.
Mexico and Brazil are América Móvil's main mobile operations representing 52.1% of its cellulars.
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In 4Q11, América Móvil cleaned its clients base, what led to negative net adds in the quarter of 2.3 million in Mexico, 2.4 million in Colombia and 152 thousand in Ecuador.
In Brazil, Claro's base also went through this process and because of it operator's net adds were smaller than Vivo and TIM's. Even so, Claro Brazil was the América Móvil's operation that showed the biggest growth in the year (16.9%) and in 4Q11 (5.0%).
The table below comes up with a comparison of the main indicators registered by Telcel Mexico and Claro Brazil.
| 4Q11 | Telcel Mexico |
Claro Brazil |
| Cellulars (millions) | 65.7 |
60.4 |
| market share | 68% |
25% |
| Prepaid | 88.6% |
79.0% |
| ARPU (US$) | 12.7 |
9.0 |
| MOU (minutes) | 235 |
109 |
| Churn month | 5.6% |
4.1% |
Telcel is the main operator in Mexico holding 68% of market share. This position assures bigger ARPU over Claro Brazil, even having bigger participation of prepaid inside its base. On the other hand Claro Brazil, faces high competitive market, occupying the third position in market share ranking.
The comparison between these two carriers shows also that Claro Brazil's MOU (109 minutes) is less than half Telcel's MOU (235 minutes).
Even though America Móvil doesn't report details of its data revenue by country, the company claims that data represents 26.6% of its mobile services net revenue. The operator wants to be the first to implement LTE in Latin America.
América Movil Brazilian operation is increasing strongly and getting closer to the Mexican operation in number of accesses. Brazilian operation represent, however, EBITDA margin inferior than the average registered by América Móvil. This is one of the facts that encourage América Móvil to promote the merger of Claro, Embratel and Net operational structures in Brazil.
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