According to the president of Tim, Rodrigo Abreu, Internet access via cell phone has become “basic need” of Brazilian consumers. Its largest competitor, Telefonica Brazil , estimates that the sport grow at least 10% this year.
telephony analysts are also optimistic about the prospects of companies, even with the Country heading for its longest recession since the 1930s provide, on average, a potential increase of 22% for shares of Telefonica Brazil over the next 12 months and an upside of 74% to Tim, according to data compiled by Bloomberg.
The operators are betting that Brazilian addicts WhatsApp, Facebook and TV shows such as Big Brother Brazil, will continue to drive the demand for pay TV services, mobile phones and use of data.
“Clearly, there are some segments that are actually still growing,” said president of Telefonica Brazil, Amos Genish, in an interview with Bloomberg in New York on Tuesday. “People need connectivity even unemployed.”
While Tim’s sales were the worst performing segment in Latin America in the last quarter, down 8.8% compared to a year ago, margins and EBITDA were the best performers in the region, according to data compiled by Bloomberg.
In the Telefonica Brazil, revenue growth was more than three times the average Latin American peers, and the banks outperformed their global peers.
To stimulate growth, Tim tries to attract customers of Telefonica Brazil, especially post-paid, most profitable and which tend to be more loyal. “The market will become more competitive,” Abreu said in an interview on Tuesday.
Regardless of the economy, Brazilians love to get online and on social networks. This year, internet penetration should reach 56% of people in the country, compared to 42% in the planet, according to the website of Statista statistics.
And the internet access via mobile phones has tripled in past three years, according to Rio de Janeiro consulting Avellar and Duarte.
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