10/28/2013

Is prepaid also having a smaller growth in other Latin American countries?

 

by Eduardo Tude

 

Prepaid growth lost strength in Brazil since the second quarter of 2012 (2Q12), while postpaid kept the growth pace.

 

In the period of 12 month ending in Jun/13, prepaid increased 1.2% in Brazil and postpaid grew 16.9%. By this result, prepaid participation in the total of mobile accesses in Brazil dropped from 81.7% in 2Q12 to 79.4% in 2Q13.

 

However, is it happening only in Brazil? Or... Is it a trend found in other Latin American countries?

 

 

In this period, prepaid participation in the total of mobile accesses in Latin America also fell, even though it dropped in a less accentuated in comparison with Brazil: from 81.8% in 2Q12 to 80.2% in 2Q13.

 

From the seven countries that represent 82% of the mobile accesses in Latin America, only Peru and Argentina didn't show reduction in prepaid participation in the total of mobile accesses in 2013.

 

 

Only in Chile prepaid growth was bigger than postpaid in the last 12 months.

 

Note: 2Q13 in comparison with 2Q12, except for Colombia and Venezuela (1Q13/1Q12).

 

In Argentina prepaid growth was close to postpaid's. In others countries, the differences were bigger.

 

The image below shows prepaid in the total of mobile accesses in the country, considering the number of mobile accesses by 100 inhabitants (density), can help to understand the adjustment what's happening in prepaid inside Brazilian market and in other Latin American countries.

 

Note: 2Q13, except for Colombia and Venezuela (1Q13).

 

Brazilian density is close to Chilean and Argentinian, but still prepaid participation reaches 79% as found in countries with density near to 100 cell./100 inhab.

 

The trend seems to point out to a drop in prepaid participation in Brazil to a value close to Argentinian (73%) or Chilean (71%), then prepaid may resume growth in the same pace as postpaid, like what happens in these two countries.

 

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Note: The opinions expressed in the published articles in this section are their authors' responsibility.

 

 

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