Brazil Mobile-Phone Subscriptions Rise at Lower Pace in April

By Rogerio Jelmayer

SAO PAULO--Brazil's mobile-phone subscriptions in April posted their lowest monthly expansion, as the country's sluggish economy hurt sales performance.

A total of just 118,000 new subscribers signed up in April, down from 840,000 the month before. Total mobile-phone users in Brazil rose to 283.52 million, up just 0.04% from March, government agency Anatel said.

In the 12-month period ended in April, the number of subscriptions increased 3.5%.

The combination of weak economic activity, high inflation and interest rates is discouraging buyers, also regarded as small-ticket purchases, according to economists. After expanding 0.1% last year, Brazil's economy is expected to contract around 1.3% this year.

Telefonica Brasil SA, also known as Vivo, which is part of Spain's Telefonica SA, and TIM Participacoes SA, a unit of Telecom Italia SpA, remain market leaders.

Vivo posted a market share of 29% in April, up from 28.89% in March, while TIM was second with 27% in April, up from 26.73%.

Claro, the local unit of Mexico's America Movil SAB de CV, ended the month with a market share of 25%, down from 25.39%, while Brazilian telecommunication company Oi SA lost ground, posted a market share of 18% in April, from 17.78% in March.

The sector's smallest player, Nextel, ended April with a market share of 1%, up from 0.64% in March.

Write to Rogerio Jelmayer at [e-mail]

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