GSM operators make inroads into CDMA/TDMA market share

21 Aug 2006

According to data published by the Brazilian telecoms regulator Anatel, GSM-based network operators commanded 59.3% of the local mobile market at the end of July, a 14.4% rise year-on-year. By contrast, carriers offering CDMA-based technology saw their share of the pie cut by 2.6% to 26.3% in the same period. Meanwhile, TDMA technology saw its market share slashed from 25.9% to 14.2% in a year in which mobile phone subscriptions overall rose to more than 93 million.

CDMA operator Vivo, a joint venture between Spain’s Telefónica and Portugal Telecom, was one of the biggest losers. Its market share fell nearly seven percentage points in the twelve months to July, from 37.3% to 30.8%. The operator is planning to migrate to a GSM network and last month announced plans to invest USD500 million to achieve this goal. Vivo needs to match the performance of GSM rivals TIM Participações, which is controlled by Telecom Italia, and América Móvil’s Claro unit. In the twelve months under review, the former boosted its share from 22.24% to 24.6%, while the latter advanced to 22.9% from 21.5%.

Brazil, Claro Brasil (incl. Embratel & NET Servicos), TIM Brasil, TIM Participaçoes