Cancellations affected Claro's growth in 2011
In 2011, Brazil presented record growth of cellular by counting net adds of 39.3 million mobile accesses, despite of the cancellations, and also a record of 94.3 million cellulars by the operators.
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The majority of prepaid and the competitive dynamic of the Brazilian market encourages clients to exchange chips so costumers make little use of number portability in this process. in 2011, only 3.6% of the chips cancelled by operators had their numbers ported to other carrier.
Claro was the operator that counted most of the cancellations in 2011, result of act of cleaning its clients base.
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These cancellations affected Claro in 2011. The carrier was the second in sales (gross additions), but as third in net additions for having more cancellations when compared with other operators.
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Rigorous cancellation policies are important to avoid paying the tariffs of Fiscalization (Fistel) about inactive chips and contaminate operational indicators such as ARPU. Claro's ARPU is the smallest among Brazilian operators.
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Note: Oi will report its 4Q11's resuls on 03/29/12
The problem doesn't exist only in Brazil. In 4Q11, América Móvil Group cleaned the base in its operations, what resulted in negative net adds of 2.3 million in Mexico, 2.4 million in Colombia and 152 thousand in Ecuador.
Churn is the indicator used by operators to measure cellular cancellation rate.
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Note: Oi's monthly churn in 4Q11 was estimated by Teleco in 3.7%. Churn = cancellations in the period/cellular accesses in the beginning of the period.
Vivo is the only operator to present monthly churn smaller or equal to 3%, what gives the company advantage in the market share competition.
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