Brazil Mobile-Phone Subscriptions Drop in June on Poor Economy
August 22 2016 - 7:56AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazil's mobile-phone market saw a decline in
subscriptions in June, as the country's deep economic recession
hurt consumer confidence and affected the sale of new phones.
The number of active mobile-phone users in Brazil dropped by
1.82 million in June to a monthly total of 253.4 million, compared
with 255.23 million in May, government agency Anatel said.
The country's mobile-phone market was once a hot industry marked
by double-digit expansion. A combination of poor economic activity
and high inflation and interest rates, however, is discouraging
buyers, according to economists. After contracting 3.8% last year,
Brazil's economy is expected to shrink at a 3.2% rate this
year.
Telefonica Brasil SA (VIVT4.BR), also known as Vivo, which is
part of Spain's Telefonica SA (TEF.MC), remained market leader in
the period. Vivo posted market share of 28.93% in June, up from
28.70% in May.
Claro, the local unit of Mexico's America Movil SAB de CV
(AMOV), ended June with a market share of 25.36%, up from 25.30%.
TIM Participacoes SA (TIMP3.BR), a unit of Telecom Italia SpA
(TIT.MI), ranked third with 25.25%, down from 25.61% in May.
Brazilian telecommunication company Oi SA (OIBR4.BR) saw its market
share increase to 18.77% in the period from 18.70% in May.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
August 22, 2016 07:41 ET (11:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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