Brazil Mobile Phone Ownership Reaches 121 Million In '07

SAO PAULO -(Dow Jones)- The number of cell phones in circulation in Brazil totaled 121 million at the end of 2007, up 21% from 2006, according to preliminary figures released Thursday by telecommunications regulator Anatel.

Net additions in December were a record 4.7 million, reflecting intense promotional activity in the pre-Christmas period.

After a quiet period in 2006 and the start of 2007, competition in the local wireless sector stiffened as operators sought to attract new users with increased spending power due to Brazil's strong recent economic performance.

The addition of 21.1 million lines in 2007 was the biggest single year figure since cell phone networks were installed in 1990.

Brazil's main operator, Vivo Participacoes, ended the year with 27.7% of the local market, up marginally from 27.6% at the end of November. The result will be heartening to Vivo, which has been gradually losing market share since April 2003.

Vivo is jointly owned by Spain's Telefonica and Portugal Telecom.

TIM Participacoes, the local unit of Telecom Italia, held 25.8% of the market at the end of December, marginally down from 25.9% in November. Claro, the local unit of Mexico's America Movil, saw its market share remain at 25% in December.

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

(END) Dow Jones Newswires

Posted to the site on 17th January 2008