Brazil's Vivo Sees Wireless Market Lead Clipped in October

SAO PAULO -(Dow Jones)- Brazil's No. 1 cellphone operator Vivo Participacoes had its lead clipped in October amid increased competition in the sector, according to data released by the Brazilian Telecommunications Agency, or Anatel.

TIM Participacoes, which is owned by Telecom Italia, had 25.9% of the market last month, virtually the same as the month before.

Claro, which is owned by Mexico's America Movil, commanded 24.9% of the market compared with 24.8% in September. Tele Norte Leste Participacoes, or Oi, had 13.3% of the market.

Anatel confirmed previously released data showing the number of cellphones in circulation in Brazil totaled 114.7 million at the end of October, up 18.7% from October, 2006.

Subscriber growth subsided last year as operators reduced promotions to attract additional clients. However, strong macroeconomic performance and the return of marketing promotions, based on improved pricing plans, has driven subscriber growth higher once again.

As a result, wireless penetration surpassed 60% for the first time last month.

Market leader Vivo is jointly controlled by Spain's Telefonica and Portugal Telecom.

-By Alsatian Stewart; Dow Jones Newswires; 5511 3145-1479; alastair.stewart@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 26th November 2007