Vivo and TIM Participacoes SA, the respective Brazilian
Telecom Italia S.p.A
), have expanded their market share in Brazil. Latin America's
biggest nation also registered higher growth in mobile subscriber
addition in Jul 2013 from the previous month.
According to Brazilian telecom regulator Anatel, total number
of registered mobile phone customers grew 0.4% in July in the
country compared with merely 0.07% in June. The nation's
customers increased 1.26 million to touch 267 million at the end
of the month. Vivo and TIM were the biggest contributors to this
Vivo, the largest wireless carrier in Brazil expanded its
market share to 28.69% in July from 28.67% in previous month.
Runner-up TIM registered 50 basis points sequential growth and
now holds a 27.22% share in the Brazilian wireless market. The
news had a huge positive impact on the TIM shareholders as the
stock gained 8.28% during Aug 30 day trade on Nasdaq.
Vivo offered the best service quality considering the least
number of complaints received by Anatel. This was primary reason
for its sequential subscriber growth. TIM, however, gained
popularity on its competitive pricing, improvement in quality and
On the contrary, the market share of Claro,
America Movil S.A.B. de C.V.
) Brazilian arm, slipped to 24.97% in Jul as compared to 25.01%
in Jun. Home grown
) also lost ground and currently holds an 18.66% share of the
Brazilian wireless market.
Telefonica, which has been struggling in Europe, has also
reported declining revenues in Brazil. Revenues from Europe slid
10.7% while in Brazil the top line fell 3.9% in the second
quarter of 2013. However, we see the Brazilian subscriber growth
in favourable light as the company is banking on the Latin
American market to compensate for the current weakness in
Telefonica currently carries a Zacks Rank #3 (Hold).
AMER MOVIL-ADR (AMX): Free Stock Analysis
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