Brazil Mobile-Phone Subscriptions Increase in 2014

By Rogerio Jelmayer

SAO PAULO--Brazil's mobile-phone subscriptions increased last year as the telecom industry remained resilient, fueled by low unemployment despite the country's poor economic conditions.

Total mobile-phone users in the country reached 280.73 million in 2014, up 3.55% from the preceding year.

Brazil's labor market last year largely defied economists' expectations that high inflation coupled with little or no economic growth would bring job cuts. The nation's economy expanded at a projected rate of 0.15% in 2014.

The unemployment rate, however, fell to 4.3% in December from 4.8% in November.

Rigid laws that make it difficult to fire workers have likely helped keep unemployment levels low. But Brazilians have also been steadily exiting from the labor force. The number of unemployed people who weren't looking for a job in December rose 3.5% from a year earlier to 19.31 million in the six cities surveyed by the country's statistical bureau IBGE, even as the working-age population in those cities rose 1.2% to 43.59 million.

Telefonica Brasil SA (VIV, VIVT4.BR), also known as Vivo, part of Spain's Telefonica SA (TEF, TEF.MC), posted a market share of 28.47% in December, down from 28.49% at the end of 2013, but it still ranked as the country's largest operator overall.

TIM Participacoes S/A (TSU, TIMP3.BR) was second with 26.97% in December, down from 27.09% at the end of 2013. TIM is the local unit of Telecom Italia SpA (TI, TIT.MI).

Claro, the local unit of Mexico's America Movil SAB de CV (AMX, AMOV, AMX.MX), came in third with a 25.33% share compared with 25.34% in the prior year. Local telecommunications company Oi SA (OIBR, OIBR4.BR) remained in fourth place with a 18.14% share, down from 18.52% in 2013.

The sector's smaller players Algar and Nextel ended the year with market shares of 0.43% and 0.54%, respectively, compared with 0.38% and 0.15% in 2013.

Write to Rogerio Jelmayer at [e-mail]

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