03/06/2015

Vivo and Claro led mobile indicators in 2014

 

Vivo was the leader in five indicators while Claro led in two of the seven mobile indicators monitored by Teleco in the 4th quarter of 2014 (4Q14). In 2014, Vivo led in six indicators and Claro was first in one.

 

 

 

Teleco followed, from 2007 to 2013, the performance of mobile operators in Brazil measuring it through seven indicators: mobile accesses, growth, revenue, ARPU, profitability, quality and coverage.

 

In 2014, Teleco reviewed the considered indicators, introducing indicators about mobile broadband and revenue growth. Coverage indicator was amplified in order to include many Technologies while the indicators about quality and profitability were cut from the list. Anatel has not published quality indicators regularly and the EBITDA margin reported by operators today involves fixed and mobile operation and revenues from extraordinary operations.

 

We present below the results for each one of the seven indicators in 4Q14.

 

Indicator Leaders in
1Q14 2Q14 3Q14 4Q14 2014
Mobile Accesses Market Share Vivo Vivo Vivo Vivo Vivo
Mobile Growth Net Adds Vivo Vivo Claro Claro Vivo
Mobile Broadband Market Share Claro Claro Claro Claro Claro
Revenue Net Revenue Vivo Vivo Vivo Vivo Vivo
Revenue Growth Growth of Services Revenue Claro Vivo Vivo Vivo Vivo
Revenue by Client ARPU Vivo Vivo Vivo Vivo Vivo
Coverage Population covered with
2G, 3G and 4G		 Vivo Vivo Vivo Vivo Vivo

Note: The order doesn't reflect the importance of the indicators. CTBC and Sercomtel weren't included in the analysis.

 

 

Market Share: Vivo led but lost the leadership inside region I for TIM

 

Vivo, the biggest mobile telephony operator in Brazil, closed the 4th of 2014 (4Q14) counting 79.9 million mobile accesses and market share of 28.47%.

 

 

TIM and Claro gained market share in 4Q14, Vivo and Oi lost it.

 

- Market Share Market Share Varition
(percentage points)
4Q13 1Q14 2Q14 3Q14 4Q14 p.p.
(Quarter)		 p.p. (4Q14/4Q13)
Vivo 28.49% 28.68% 28.78% 28.66% 28.47% (0.19) (0.02)
TIM 27.09% 27.02% 26.91% 26.89% 26.97% 0.08 (0.12)
Claro 25.34% 25.13% 24.95% 25.01% 25.33% 0.32 (0.01)
Oi 18.52% 18.49% 18.53% 18.47% 18.14% (0.33) (0.38)

 

In 4Q14, TIM started to lead inside region I and conquered the leadership in Paraíba (area code 83) in Maranhão. Vivo continues being leader inside regions II and III, in 11 of the 27 federation unites and in 28 of the 67 local areas (area code).

- Leader in Market Share in 4Q14
Region Federation Unity* Local areas (Area Code)
Vivo II e III (-1) 11 28
Claro - 7 15
TIM I (+1) 9 (+2) 19 (+1)
Oi - - (-2) 5 (-1)

*Federation Units

TIM is the leader in prepaid market share and continued to amplify this leadership in 4Q14. Claro is amplifying its difference to Vivo (1.8 p.p.) which occupies the third position.

 

 

 

Prepaid 4Q13 1Q14 2Q14 3Q14 4Q14
TIM 28.9% 29.1% 29.2% 29.4% 29.7%
Claro 25.7% 25.5% 25.4% 25.5% 26.0%
Vivo 25.3% 25.2% 25.1% 24.7% 24.2%
Oi 19.7% 19.8% 19.9% 19.9% 19.6%

 

Inside postpaid segment, Vivo continues to amplify its leadership in market share while the others are losing.

 

 

 

Postpaid 4Q13 1Q14 2Q14 3Q14 4Q14
Vivo 39.8% 40.6% 41.3% 41.5% 41.8%
Claro 24.1% 23.8% 23.4% 23.3% 23.1%
TIM 20.6% 19.9% 19.3% 18.7% 18.5%
Oi 14.2% 13.9% 13.8% 13.7% 13.5%
Nextel
0.53%
1.07%
1.61%
1.97%
2.23%

 

 

 

Growth: Claro leads in net adds in the quarter and Vivo was first in the year

 

Claro led growth in the last quarter (4Q14), but Vivo got the leadership in net adds 2014.

 

- Net Adds (Thousands)
4Q13
1Q14
2Q14
3Q14
4Q14
2014
Claro 1,272 45 27
860
1,470
2,403
TIM
539
486
286
674
843
2,290
Vivo
630
1,220
892
466
115
2,693
Oi
203
363
502
346
(509)
702
Nextel
124
339
367
268
220
1,195

 

 

Claro was the leader in 4Q14 after presenting good performance in postpaid and prepaid. TIM led prepaid net adds and Vivo was first in postpaid net adds. Oi had bad performance in the prepaid segment, with negative additions of (707) thousand mobile accesses in 4Q14.

 

 

 

Mobile Broadband: Claro leads market share

 

Claro kept the leadership in mobile broadband market share and 3G handsets market share in 4Q14. TIM occupied the second position in 4G behind Vivo, which is also the leader in broadband terminals.

 

 

 

Net Revenue: Vivo leads

 

Note: Oi had not published this information for 4Q14 until the date when this commentary was written.

 

Vivo kept the leadership by holding total net revenue of R$ 6.2 billion in 4Q14 and growth of 2.2% in comparison with 4Q13.

 

R$ million 4Q13 1Q14 2Q14 3Q14 4Q14 Quarter Growth Growth
4Q14/4Q13
Vivo
6,086
5,759
5,824
 5,938 6,219 4.7% 2.2%
TIM 5,025 4,555 4,628 4,698
5,017
 6.8% (0.2%)
Claro
3,669
3,329
3,407
3,333
3,593
 7.8% (2.1%)
Oi
2,790
2,547
2,609
2,559
-
 - -

Note: Vivo's revenues include interconnection revenues from Vivo Fixo. Claro's revenues don't include long distance

 

Mobile operators revenues are suffering the impact of the reduction of VUM value promoted by Anatel.

 

 

Growth of Services Net Revenue: Vivo leads

 

Note: Oi had not published this information for 4Q14 until the date when this commentary was written.

 

Vivo led the growth of services net revenue in 4Q14, being the only one of the four operators to show positive growth of services net revenue in the quarter.

 

In 2014, mobile operators services' net revenue had growth smaller than inflation. Vivo's services net revenue increased 3.8%, and Claro's 1.9% and TIM's -1.6%.

 

 

ARPU: Vivo amplifies leadership in ARPU

Note: Oi had not published this information for 4Q14 until the date when this commentary was written.

 

The more adjusted base, after stablishing a more strict policy to turn off prepaid accesses, has contributed to avoid more accentuated drop in Vivo's ARPU.

 

ARPU (R$) 4Q13 1Q14 2Q14 3Q14 4Q14
Vivo 24.8 23.3 23.4 23.6 24.6
TIM 19.2 18.0 17.3 17.4 18.0
Claro 16.0 15.0 15.0 15.0 15.0
Oi 19.9 18.5 17.7 17.4 -
ARPU Brazil 20.1 18.9 18.6 18.6 19.0

 

 

Vivo's data ARPU (R$ 9.5) represented 38.6% of the total ARPU (R$ 24.6) in 4Q14.

 

ARPU values informed by operators aren't totally comparable because companies use different rules to determine them:

In 4Q14, Minutes of Use (MOU) by client in Brazil presented drop in comparison with 4Q13, except at Vivo.

Minutes 4Q13 1Q14 2Q14 3Q14 4Q14
Vivo 135 135 129 132 141
TIM 149 140 137 136 130
Claro 137 122 117 122 123
MOU Brazil 140 133 128 130 132

Note: Oi doesn't publish this indicator.

 

 

Coverage: Vivo in the first position

 

In 4Q14, Vivo was the leader in covered population if we considered the group of three technology generations. It led population covered with 3G (86.6%) and started to lead population covered with 4G (40.6%). Claro led population covered with 2G (91.9%).

 

Vivo led also in number of cities covered with 2G, 3G and 4G.

 

 

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