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Brazilian consumers are key to any EM investor outlook. As consumer markets around the world heat up, Brazil will continue to be a place of dominant growth, and the phone stocks will continue to be one of the best places to get exposure to that growth.
Here is your sector quick review of how the players are positioned and the ADRs to watch: Yesterday subscriber data was released and this is a good time to review the trades and trends. The market remains strong but subscriber growth is down a bit, with only 2.4 million net adds in August (down 8% year-over-year).
The top three plays in order of market share: TSU, VIV, AMX . TSU is the leader with 42.4% of the Brazilian wireless market. VIV remains strong at 27.6% and AMX has 25.3%. Wireline giant TNE has only a 4.3% share, its weakest monthly performance over the past 20 months. This is your cellular basket for Brazil. The entire market is growing at 15% year-over-year, with almost 98% penetration.