Brazil Mobile-Phone Subscriptions Drop in June on Poor Economy

   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 [e-mail]

(END) Dow Jones Newswires

August 22, 2016 07:41 ET (11:41 GMT)

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