Vivo and Claro are cellular leaders in 1Q13
Vivo led, in the first quarter of 2013 (1Q13), five of the seven cellular indicators monitored by Teleco and Claro was the leader in two of them.
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| Indicator | Leader in | |
| 1Q13 | ||
| Cellulars | Market Share | Vivo |
| Growth | Net Adds | Claro |
| Revenue | Net Revenue | Vivo |
| Reenue by Client | ARPU | Vivo |
| Profitability | EBITDA Margin | Vivo |
| Quality | Complaints at Anatel | Vivo |
| Coverage | Covered Population | Claro |
Note: the order doesn't reflect the importance of the indicators. CTBC and Sercomtel weren't included in this analysis.
Since 2007, Teleco monitors cellular operators' performance in Brazil measured through these seven indicators.
Since 1Q13 quality is evaluated through the indicator of complaints made to Anatel. In April 2012, Anatel suspended the publication of the indicators about the accomplishment of quality targets by operators.
The following show the results for each one of these indicators in 1Q13.
Market Share: Vivo leads, but lost market share in the quarter
Vivo, the biggest cellular carrier operating in Brazil, ended 1Q13 counting 76.0 million mobile subscriptions and market share of 28.78%.
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The reduction of the deadline to turn off prepaid inactive accesses continued to affect Vivo's net adds in 1Q13.
| - | Market Share | Market Share Variation (percentage poins) |
|||||
| 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 | p.p. (QUA) | p.p. (1Q13/1Q12) |
|
| Vivo | 29.81% | 29.56% | 29.67% | 29.08% | 28.78% | -0.30 | -1.03 |
| TIM | 26.80% | 26.89% | 26.81% | 26.87% | 26.98% | 0.11 | 0.18 |
| Claro | 24.56% | 24.58% | 24.51% | 24.92% | 25.11% | 0.19 | 0.55 |
| Oi | 18.53% | 18.65% | 18.69% | 18.81% | 18.74% | -0.07 | 0.21 |
| - | Market Share Leader in 1Q13 | ||
| Region | State* | Local Areas | |
| Vivo | I, II and III | 11 | 28 |
| Claro | - | 8 | 18 |
| Tim | - | 6 (+1) | 16 |
| Oi | - | 2 (-1) | 5 |
 |
| Prepaid | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| TIM | 28.1% | 28.1% | 28.1% | 28.3% | 28.5% |
| Vivo | 28.3% | 28.0% | 28.0% | 27.2% | 26.7% |
| Claro | 23.7% | 24.0% | 24.1% | 24.7% | 25.0% |
| Oi | 19.6% | 19.6% | 19.5% | 19.5% | 19.5% |
 |
| Postpaid | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| Vivo | 36.5% | 36.6% | 36.9% | 36.9% | 37.1% |
| Claro | 28.2% | 27.0% | 26.2% | 25.7% | 25.5% |
| TIM | 21.2% | 21.3% | 21.1% | 21.0% | 20.8% |
| Oi | 13.6% | 14.5% | 15.3% | 15.8% | 15.9% |
Growth: Claro leads net adds in the quarter
Claro led growth in 1Q13.
| - | Net Adds (thousand) | ||||
1Q12 |
2Q12 |
3Q12 |
4Q12 |
1Q13 |
|
| Claro | 1,217 | 1,370 | 481 | 1,791 | 1,070 |
| TIM | 3,134 | 1,656 | 535 | 935 | 856 |
| Oi | 986 | 1,302 | 604 | 862 | 256 |
| Vivo | 3,230 | 936 | 1,086 | -668 |
-150 |
Net adds of 2.2 million cellulars registered in 1Q13 confirmed the trend to reduction in the cellular growth rate in Brazil.
Claro led prepaid net adds, but was overtaken by Vivo in postpaid.
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Vivo's net adds in the quarter were affected by the reduction of the period to turn off prepaid inactive accesses for 50 days.
Net revenue: Vivo kept advantage over other carriers
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Vivo remained in the leadership holding revenue of R$ 5.6 billion in 1Q13 and increasing 10.4% in comparison with 1Q13.
| R$ million | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 | Quarter Growth | Growth 3Q12/3Q11 |
| Vivo | 5,106 | 5,128 |
5,341 |
5,823 |
5,636 |
-3.2% | 10.4% |
| TIM | 4,187 | 4,269 | 4,495 | 4,821 | 4,515 | -6.4% | 7.8% |
| Claro | 3,106 | 3,002 | 2,957 | 3,141 | 3,019 | -5.0% | -2.8% |
| Oi | 2,016 | 2,160 | 2,197 | 2,372 | 2,254 | -4.5% | 11,8% |
Note: Vivo's revenues don't include interconnection revenues from Vivo Fixo. Claro's revenue doesn't include long distance.
Cellular operators' revenues are suffering the impact of the reduction of VUM in 2012, however, we can observe that they continue to grow in each quarter and in each year, exception of Claro's.
ARPU: Vivo amplifies the leadership in ARPU
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Vivo's data ARPU (R$ 6.9) represented 29.7% of the total ARPU (R$ 23.1) in 1Q13.
| ARPU (R$) | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| Vivo | 22.4 | 21.9 | 22.2 | 23.9 | 23.1 |
| Oi | 21.3 | 21.4 | 22.2 | 21.5 | 20.5 |
| TIM | 19.1 | 18.3 | 18.9 | 19.9 | 18.5 |
| Claro | 17.0 | 16.0 | 15.0 | 16.0 | 15.0 |
| ARPU Brazil | 20.0 |
19.4 |
19.5 |
20.4 |
19.3 |
ARPU values informed by operators aren't totally comparable because they use different rule in its determination:
Monthly minutes of use (MOU) by user in Brazil increased when compared with 1Q12.
| Minutes | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| TIM | 126 | 127 | 139 | 150 | 145 |
| Vivo | 114 | 116 | 123 | 128 | 123 |
| Claro | 105 | 107 | 122 | 126 | 121 |
| MOU Brazil | 115 | 117 | 128 | 135 | 130 |
Note: Oi doesn't publish this indicator.
Profitability: Telefônica/Vivo leads EBITDA margin
Telefônica/Vivo Group kept the leadership in profitability by having EBITDA margin of 32.1%, smaller than what was registered in the last quarters.
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Oi Group remained in the second position.
| EBITDA margin | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| Telefônica/Vivo | 34.2% | 37.5% | 34.4% | 43.3% | 32.1% |
| Oi | 29.7% | 31.0% | 31.1% | 33.3% |
30.5% |
| TIM | 26.3% | 26.7% | 25.5% | 28.4% | 25.9% |
| América Móvil | 26.1% | 24.0% | 24.1% | 20.7% | 24.6% |
Note: In 2QT11 a modification was made in the criteria used to get the profitability of the indicators calculated by TELECO, it started to consider group's EBITDA margin adding fixed and mobile operations. This modification was necessary because Vivo, Claro and TIM report this indicator only this way.
Quality: Vivo is the leader
Since 1Q13 quality is evaluated through the indicator of complaints made to Anatel. In April 2012, Anatel suspended the publication of the indicators about the accomplishment of quality targets by operators.
Vivo and TIM presented the smallest number of complaints by 1000 accesses during the first two months of 2013. When this commentary was written, Anatel hadn't published this index for Mar/13 yet.
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Coverage: Claro continued to lead
Claro remained in the leadership having most of the covered population (91.3%), conquered in 4Q12.
| Covered Population | |||||
| Operator | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| Claro | 90.6% | 90.6% | 90.6% | 91.2% | 91.3% |
| Vivo | 90.7% | 90.7% | 90.8% | 91.0% |
91.1% |
| Tim | 89.6% | 89.6% | 89.8% | 90.7% | 90.8% |
| Oi | 87.9% | 87.9% | 87.9% | 87.9% | 87.9% |
Source: Anatel
However, Vivo continues to be the leader in quantity of covered cities.
| Covered Cities | |||||
| Operator | 1Q12 | 2Q12 | 3Q12 | 4Q12 | 1Q13 |
| Vivo | 3,704 | 3,705 | 3,713 | 3,733 | 3,753 |
| Claro | 3,568 | 3,568 | 3,568 | 3,629 | 3,634 |
| Tim | 3,212 | 3,212 | 3,237 | 3,351 | 3,357 |
| Oi | 3,316 | 3,316 | 3,316 | 3,316 | 3,316 |
Vivo is the leader in 3G coverage, covering 3,121 cities in 1Q13, followed by Claro (1,119), Oi (734) and TIM (593).
You could ask:
How will the beginning of Nextel 3G affect this scenario?
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