Analyst: Mobile Growth to Fall Below 10% in 2007

Brazil's mobile market is likely to grow less than 10% in 2007, down from the 15.9% growth in subscribers seen in 2006, Luciana Leocádio, analyst at local bank Ativa Corretora, told BNamericas.

Last year's growth was the slowest since 1999, practically half the 31.4% rate seen in 2005, which itself was slashed from 41.5% in 2004, according to preliminary data from the national telecoms regulator Anatel.

Mobile penetration at year-end was 53.2%, according to Anatel, whereas markets like Argentina and Chile have achieved over 70%.

The main reason for slowdown occurring ahead of saturation in Brazil is that a large portion of the population lacks sufficient income to have a mobile phone, according to Leocádio.

Furthermore, mobile operators have also decided to stop subsidizing prepaid handsets and are focusing on postpaid clients to boost ARPU, the analyst said.

ALMOST 100 MILLION

Anatel recorded 2.58 million net additions in December to reach 99.9 million mobile phone users, making the country one of the five largest markets for cell phones in the world.

However, Anatel and most analysts had expected the figure to exceed 100 million this year.

In all, Brazil added 13.7 million new subscribers to the mobile market in 2006, Anatel said."

Posted to the site on 18th January 2007