Brazil's Vivo Sees Mobile Phone Market Share Increase in May

SAO PAULO -(Dow Jones)- Brazilian phone company Vivo Participacoes saw its share of the local mobile phone market pick up in May, maintaining its lead position, while No. 2 operator TIM Participacoes saw a slight decrease, according to data released by telecommunications regulator Anatel Wednesday.

Cellphones in circulation totaled 130.5 million at the end of May, with net additions of 2.8 million in the month. The market continues to expand rapidly as operators chase new clients with promotions.

May figures represented an increase of 24% compared with the same month of 2007.

Vivo's market share was up at 30.45% in May, compared with 30.36% seen in April. For the first time, Anatel's figures consolidated Vivo's numbers with those of Telemig.

Last year, Vivo acquired control of Telemig, which allowed Vivo to extend its coverage to the key Brazilian state of Minas Gerais, where Telemig had approximately 3.5 million clients.

In the meantime, TIM registered a decline in market share to 25.60% in May from 25.85% in the previous month. Claro's market share remained at 24.75% in May, the same level seen in April.

Tele Norte Leste Participacoes, or Oi, had 15.09% of the market in May, up from 15.03% in April.

Vivo is jointly owned by Spain's Telefonica and Portugal Telecom; TIM is the local unit of Telecom Italia and Claro is a unit of Mexico's America Movil. Oi is a Brazilian company.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-6847-4521; rogerio.jelmayer@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 18th June 2008