Vivo and Oi are cellular leaders in 3Q12
by José Luis De Souza
In the third quarter of 2012 (3Q12), Vivo was the leader in five of the seven cellular indicators followed by Teleco and shared with Oi the leadership in ARPU.
 |
| Indicator | Leader in | ||||
| 4Q11 | 1Q12 | 2Q12 | 3Q12 | ||
| Cellulars | Market Share | Vivo | Vivo | Vivo | Vivo |
| Growth | Net Adds | TIM | Vivo | TIM | Vivo |
| Revenue | Net Revenue | Vivo | Vivo | Vivo | Vivo |
| Revenue by Client | ARPU | Vivo | Vivo | Vivo | Vivo/Oi |
| Profitability | EBITDA Margin | Vivo | Vivo | Vivo | Vivo |
| Quality | Anatel's Targets | TIM | Vivo | ? | ? |
| Coverage | Covered Population | Vivo | Vivo | Vivo | Vivo |
Note: The order doesn't reflect the importance of the indicators. CTBC and Sercomtel aren't included in the analysis.
Since 2007, Teleco follows the performance of cellular operators in Brazil measuring it through these indicators.
The quality indicator can1t be analyzed because Anatel suspended in April the report about the accomplishment of quality targets by operators.
The performance registered by TIM, Claro and Oi in 3Q12 was impacted by the suspension of sales of these carriers in some states as determined by Anatel (more details).
The following shows the results for each of these indicators in 3Q12.
Market Share: Vivo is the leader and gained market share in the quarter
Vivo, the biggest cellular operator in Brazil, ended 3Q12 with 76.8 million mobile accesses and market share of 29.67%.
 |
Vivo and Oi gained market share in the quarter.
| - | Market Share | Market Share Variation (percentage points) |
|||||||
1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
p.p. (QUA) | p.p. (3Q12/3Q11) | |
| Vivo | 29.48%
|
29.47%
|
29.49%
|
29.54%
|
29.81%
|
29.56%
|
29.67%
|
0.11
|
0.18 |
| TIM | 25.11% |
25.55% |
26.04% |
26.46% |
26.80% |
26.89% |
26.81% |
-0.18 |
0.77 |
| Claro | 25.39% |
25.55% |
25.30% |
24.93% |
24.56% |
24.58% |
24.51% |
-0.07 |
-0.79 |
| Oi | 19.69% |
19.10% |
18.84% |
18.78% |
18.53% |
18.65% |
18.69% |
0.04 |
-0.15 |
| - | Market Share Leader in 3Q12 | ||
Region |
State* |
Area Codes |
|
| Vivo | I, II and III | 12 | 30 |
| Claro | - | 8 (+1) | 15 |
| Tim | - | 5 | 16 |
| Oi | - | 2 (-1) | 6 |
| Area | Lost Leadership |
Gained Leadership |
| Pará | TIM | Vivo |
| Rio de Janeiro | Vivo | Claro |
| Pernambuco | Oi | TIM |
 |
| Prepaid | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
| Vivo | 28.2% |
28.0% |
27.8% |
28.0% |
28.3% |
28.0% |
28.0% |
| TIM | 26.1% |
26.7% |
27.2% |
27.6% |
28.1% |
28.1% |
28.1% |
| Claro | 24.6% |
24.7% |
24.5% |
24.1% |
23.7% |
24.0% |
24.1% |
| Oi | 20.9% |
20.3% |
20.2% |
20.1% |
19.6% |
19.6% |
19.5% |
 |
| Postpaid | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
| Vivo | 35.5% |
36.1% |
36.8% |
36.6% |
36.5% |
36.6% |
36.9% |
| Claro | 29.1% |
29.3% |
28.9% |
28.8% |
28.2% |
27.0% |
26.2% |
| TIM | 20.5% |
20.3% |
20.7% |
21.1% |
21.2% |
21.3% |
21.1% |
| Oi | 14.2% |
13.7% |
12.9% |
13.0% |
13.6% |
14.5% |
15.3% |
Growth: Vivo leads net adds in the quarter
Net adds of 2.7 million cellulars in 3Q12 were the smallest since 1Q07 being the milestone of a phase of small growth for the cellular market in Brazil (more details).
Vivo led growth in the quarter, being part benefited from the low growth registered by other operators in July.
| - | Net Adds (thousands) |
||||||
1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
|
| Vivo | 1,769 |
1,988 |
2,989 |
4,515 |
3,230 |
936 |
1,086 |
| Oi | 2,170
|
67 |
1,332 |
1,642 |
986 |
1,302 |
604 |
| TIM | 1,821 |
2,676 |
3,685 |
4,873 |
3,134 |
1,656 |
535 |
| Claro | 1,800 |
2,096 |
1,979 |
2,866 |
1,217 |
1,370 |
481 |
Vivo led postpaid net adds, but was overtaken by Claro in prepaid.
 |
Net Revenue: Vivo keeps the advantage over other carriers
 |
Note: Oi reports revenue for handsets only inside the retail market (personal mobility). Claro's revenue without elimination of common revenues with Embratel, doesn't include long distance.
Vivo remained in the leadership with revenue reaching R$ 5.3 billion in 3Q12 and growth of 8.5% in comparison with 3Q11.
| R$ million | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
Quarter Growth | Growth 3Q12/3Q11 |
| Vivo | 4,671 | 4,732 | 4,923 | 5,261 | 5,106 | 5,128 | 5,341 | 4.1% |
8.5% |
| TIM | 3,501 |
3,983 |
4,114 |
4,433 |
4,187 |
4,269 | 4,495 | 5.3% |
9.3% |
| Claro | 3,092 |
3,060 |
3,138 |
3,235 |
3,255 |
3,137 |
3,095 |
-1.3% |
-1.4% |
| Oi |
2,579 |
2,696 |
2,822 |
2,971 |
2,964 |
3,161 |
3,338 |
5.6% |
18.3% |
Note: Vivo's revenues doesn't include interconnection revenues gotten by "Vivo Fixo". That's the opposite of what happens to other operators. Claro's revenue don't include long distance.
The revenues reported by cellular operators are suffering the impact of the reduction of the VUM in 2012.
ARPU: Vivo and Oi led in ARPU
 |
Oi's ARPU is calculated without elimination of the revenues from Oi Fixed, in opposition to what Vivo does. If both operators used the same criteria, Vivo's ARPU would be superior to Oi's.
| ARPU (R$) | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
| Vivo | 23.8 |
23.6 |
23.8 |
24.6 |
22.4 |
21.9 |
22.2 |
| Oi | 20.7 | 21.6 | 22.2 | 22.3 | 21.3 | 21.4 | 22.2 |
| TIM | 20.8 | 21.6 | 21.2 | 21.9 | 19.1 | 18.3 | 18.9 |
| Claro | 19.0 | 17.0 | 18.0 | 17.0 | 17.0 | 16.0 | 15.0 |
| Brazilian ARPU | 21.2 | 20.9 | 21.0 |
21.5 |
19.9 |
19.3 |
19.5 |
Vivo's data ARPU (R$ 6.2) represented 27.9% of the total ARPU (R$ 22.2) in 3Q12.
The monthly minutes of uses by client (MOU) in Brazil increased in 3Q12, when compared with the previous quarters.
| Minutes | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
| TIM | 126 |
127 |
130 |
131 |
126 |
127 |
139 |
| Vivo | 114 | 119 | 124 | 119 | 114 | 116 | 122 |
| Claro | 90 | 84 | 109 | 109 | 105 | 107 | 122 |
| Brazilian MOU | 110 | 110 | 121 | 120 | 115 | 117 | 128 |
Note: Oi doesn't report this indicator.
Profitability: Telefônica/Vivo leads EBITDA Margin
Vivo/Telefônica Group kept the leadership in profitability in 3Q12, getting results from the integration of fixed and mobile operations.
 |
Oi Group was placed in the second position.
| EBITDA Margin | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | 2Q12 | 3Q12 |
| Telefônica/Vivo | 35.4%
|
37.1%
|
34.1% | 38.5%
|
34.2%
|
37.5%
|
34.4%
|
| Oi | 28.6% |
35.0% |
35.5% |
26.4% |
29.6% |
31.0% |
31.1% |
| TIM | 27.5% | 26.8% | 26.5% | 28.0% | 26.2% | 26.7% | 25.5% |
| América Móvil | 26.9% |
26.4% |
25.1% |
24.5% |
25.6% |
24.0% |
24.1% |
Note: In 2Q11 a modification was made in the criteria to count the profitability of the indicators calculated by TELECO, then we started to consider the group's EBITDA margin gathering mobile and fixed operations. It was necessary to make this modification because Vivo, Claro and TIM report the indicator this way only.
Quality: Anatel suspended the report of indicators
In April, Anatel stopped to report information about the targets accomplished. By this action it became impossible to analyze this index for 2Q12 and 3Q12.
Quality Targets Accomplished by Operators |
||||||
| - | 1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
Apr/12 |
| Vivo | 99.7% |
100% |
99.4% |
98.7% |
99.9% |
99.7% |
| TIM | 99.8% |
99.9% |
99.9% |
99.8% |
98.6% |
100% |
| Oi | 74.2% | 91.4% | 86.9% | 88.9% | 92.4% | 89.4% |
| Claro | 97.0% | 95.5% | 92.8% | 83.3% | 79.8% | 84.5% |
In July, Anatel adopted new quality criteria in order to punish TIM, Claro and Oi with the suspension of cellular sales. After the sales were resumed (in 3rs August) Anatel announced that quality will be monitored by state every quarter.
According to Anatel's report, Vivo and TIM showed the smallest number of complaints by 1000 accesses in the two first quarters of the year.
 |
Coverage: Vivo is the leader
Vivo remained as leader in covered population (90.8%) and cities.
| Covered Population | |||||||
| Operator | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | 2Q12 | 3Q12 |
| Vivo | 90.3% | 90.3% | 90.5% | 90.7% | 90.7% | 90.7% | 90.8% |
| Claro | 90.2% | 90.6% | 90.6% | 90.6% | 90.6% | 90.6% | 90.6% |
| Tim | 89.5% | 89.5% | 89.6% | 89.6% | 89.6% | 89.6% | 89.8% |
| Oi | 83.2% | 83.2% | 83.3% | 87.9% | 87.9% | 87.9% | 87.9% |
Source: Anatel
| Covered Cities | |||||||
| Operator | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | 2Q12 | 3Q12 |
| Vivo | 3,659 | 3,665 | 3,683 | 3,702 | 3,704 | 3,705 | 3,713 |
| Claro | 3,486 | 3,568 | 3,568 | 3,568 | 3,568 | 3,568 | 3,568 |
| Oi | 2,913 | 2,913 | 2,979 | 3,316 | 3,316 | 3,316 | 3,316 |
| Tim | 3,209 | 3,209 | 3,212 | 3,212 | 3,212 | 3,212 | 3,237 |
Vivo is the leader in 3G coverage, reaching 2,876 cities in 3Q12, followed by Claro (1,045), TIM (567) and Oi (445).
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