08/21/2018


Mobile Leaders in 2Q18

 

In the second quarter of 2018 (2Q18), Vivo was the leader in 8 (eight) of the twelve mobile indicators monitored by Teleco. Claro led two indicators and TIM one.

 

 

 

 

In 2007, Teleco started to monitor mobile operators performance in Brazil measured through indicators that are updated annually since 2014. In 2017 a new indicator was introduced (IoT) and the mobile broadband market share indicator was replaced by the 4G indicator.

 

 

Leader in Apr/18 1Q18 2Q18
1 Mobile Accesses Market Share Vivo Vivo
2 Prepaid Market Share TIM TIM
3 Postpaid Market Share Vivo Vivo
4 Mobile Growth Net Adds Vivo Claro
5 4G 4G Market Share Vivo Vivo
6 IoT M2M Market Share Vivo Vivo
7 Revenue Net Revenue Vivo Vivo
8 Data Revenue Data Revenue/Services Revenue Vivo Vivo
9 Revenue Growth Services Revenue Growth Claro Claro
10 Client Revenue ARPU Vivo Vivo
11 Coverage Covered Population 2G, 3G and 4G Vivo Vivo

Note: The analysis considers only the four largest operators: Vivo, TIM, Claro and Oi. Nextel is included in some indicators for information.

 

The results for each of these eleven indicators in 2Q18 are presented below.

 

 

 

1) Mobile Market Share: Vivo amplifies the leadership

 

Vivo, the largest cellular operator in Brazil, ended the second quarter of 2018 (2Q18) with 75.3 million mobile accesses and increased its market share to 32.0%. Only TIM lost market share in the quarter.

 

 

 

Claro surpassed TIM in market share in 3Q17 and consolidated itself in the second place.

 

 

Market Share 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Vivo
30.48%
30.70%
30.93%
31.69%
31.85%
32.02%
Claro
24.81%
24.89%
25.05%
24.95%
24.95%
25.10%
TIM
25.48%
25.12%
24.64%
24.79%
24.55%
24.06%
Oi
17.33%
17.36%
17.39%
16.47%
16.45%
16.53%

 

 

In 2Q18, TIM lost the leadership in Area Code 99 (Imperatriz in Maranhão) to Vivo..

 

 

- Market Share Leader 2Q18
Region State Registration Areas
(Area Code
Vivo I, II and III 13 32 (+1)
Claro - 6 13
TIM - 5 15 (-1)
Oi - 3 6
*Federative Unit

 

 

 

2) Prepaid Market Share: The leader TIM lost market share

 

TIM, the prepaid leader, has been losing market share since 1Q17 and is practically tied with Claro and Vivo.

 

 

 

TIM was the only one that lost market share in the quarter, because it had net additions of -2.0 million prepaid accesses in the quarter.

 

 

Prepaid 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
TIM
28,7%
28,1%
27,3%
27,5%
27,2%
26,4%
Claro
25,7%
26,0%
26,3%
26,1%
25,86%
26,2%
Vivo
24,8%
24,8%
24,9%
25,7%
25,90%
26,0%
Oi
20,2%
20,5%
20,9%
20,1%
20,4%
20,7%

 

 

 

3) Postpaid Market Share: Vivo kept the leadership

 

Vivo maintained the postpaid leadership (41.3%) but continued to lose market share in the quarter, despite having led in postpaid net additions in the quarter.

 

 

 

 

Postpaid 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Vivo
42,0%
42,3%
42,1%
41,8%
41,4%
41,3%
Claro
23,0%
22,8%
22,8%
23,1%
23,5%
23,4%
TIM
19,0%
19,3%
19,8%
20,2%
20,4%
20,5%
Oi
11,5%
11,2%
10,9%
10,4%
10,2%
10,2%

 

 

Claro maintained second position, but is surpassed by TIM when the M2M terminals are excluded from the postpaid.

 

 

 

Nextel reached 3.9% in the postpaid market share without M2M.

 

 

 

4) Mobile Growth: Claro led net adds in the quarter

 

Claro led mobile growth in this quarter with net adds of 195 thousand mobile accesses. TIM reported losses of 1,340 thousand in the quarter.

 

 

 

 

- Net Addtions (Thousands)
4Q16 1Q17 2Q17 3Q17 4Q17 2017 1Q18 2Q18
Vivo
283
219
338
227
378
204
158
164
TIM
171
-1,550
-1,036
-1,441
-756
127
-740
-1340
Claro
-3,348
66
36
126
-1,376
-1,516
-213
195
Oi
-4,227
-60
-47
-120
-2,969
-1,531
-160
79
Nextel
81
13
-30
51
165
119
153
135

 

 

Claro, Vivo and Oi were able to offset losses in the prepaid with net additions of postpaid, which did not occur with TIM.

 

 

 

 

 

5) 4G Market Share: Vivo is the market share leader

 

Vivo is the 4G market share leader, followed by TIM. Claro and Oi gained market share in 2Q18.

 

 

 

 

Claro led 4G growth with net additions of 2.6 million accesses in the quarter, followed by Vivo (1.9 million), TIM (1.8 million) and Oi (1.5 million). The trend points out to Claro gaining market share in 4G and TIM losing it, since Claro's market share in 4G is lower than in total mobile accesses, unlike TIM. Vivo and Oi's market share in total mobile accesses is practically the same in 4G.

 

Vivo also leads mobile broadband market share (which includes 4G, 3G and broadband terminals). Claro is the leader in 3G (33.0%) and Vivo in broadband terminals (47.1%).

 

 

 

 

 

6) IoT Market Share: Vivo is the IoT leader

 

Vivo is the M2M market share leader, followed by Claro. On a lower level, Tim and Oi are in the third position.

 

 

 

Vivo led M2M net adds in the quarter (353 thousand), followed by Claro (244 thousand), Oi (78 thousand) and TIM (61 thousand).

 

 

 

7) Net Revenue: Vivo in the leadership

 

 

 

 

Vivo kept the leadership with a total net revenue of R$ 6.8 billion in 2Q18 and a growth of 4.2% in relation to 2Q17. Tim and Claro had higher growth rates, 5.8% and 10.5%, respectively.

 

 

R$ million
1T17
2T17
3Q17
4Q17
1T18
2T18
Growth 2Q18/2Q17
Vivo
6,464
6,534
6,610
6,850
6,735
6,810
4.2%
TIM
3,773
3,747
3,884
4,043
3,934
3,965
5.8%
Claro
2885
2,826
2,913
3,051
3,090
3,122
10.5%
Oi
2,296
2,218
2,289
2,241
2,174
1,978
-10.8

 

 

 

8) Data Revenue: Vivo leads

 

Vivo's data revenue already represents 78.5% of its mobile services revenue.

 

 

Note: Claro doesn't report this indicator

 

Vivo is the operator with the highest data revenue (R$ 5.0 billion), followed by TIM (R$ 2.5 billion). The composition of Vivo's data revenue in 2Q18 was: 61.0% data bundles (Internet), 33.3% digital services and 5.7% SMS.

 

 

9) Growth of Services Net Revenue: Claro is the leader

 

 

 

Claro led growth of services net revenue in 2Q18, followed by TIM and Vivo.

 

 

 

10) ARPU: Vivo keeps the leadership in ARPU

 

 

 

 

The growth of competition in data bundles has led to a drop in Vivo ARPU, but the operator still has a higher ARPU than the others. The sale of digital services has contributed to this result registered by Vivo.

 

 

ARPU (R$) 1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
Vivo
28.0
28.2
28.4
29.2
28.6
28.1
TIM
19.0
19.4
20.5
21.9
21.6
21.9
Claro
15.0
15.0
15.0
16.0
17.0
17.0
Oi
16.2
15.4
16.1
16.2
16.3
16.1
Brazilian ARPU
20.3
20.3
20.8
21.8
21.8
21.7

 

Note: ARPU values informed by the operators are not fully comparable because they use different criteria in their calculation.

 

 

 

11) Coverage: Vivo leads

 

Vivo is the leader in covered population in 2Q18, due to 3G coverage, available for 93.7% of the population. Claro leads in 2G coverage (93.0%) and TIM in 4G (87.4%).

 

 

 

 

Vivo continued to lead in the total of cities covered with 2G and 3G. TIM led in municipalities covered with 4G.

 

 

 

You couls ask:

  • Which company can threaten Vivo's leadership in these mobile indicators?
  • Will this scenario change in coming quarters?
  • Which company will be the mobile growth leader in 2018?
  • Which factors will have bigger impact in the financial indicators?

 

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