Thursday , August 18 2022

Telephone companies register a reduction in income through high competition in a mobile business


Movistar led to the decline in the mobile segment last year with a 15.3% reduction. 5% fell, while Claro rose by 0.3%. For the first time, industry sales did not keep up with progress in GDP.

In the balance sheet at the end of the 2018 financial year, the three main telecommunications companies enrolled a general decline in the global revenue of their different business areas.

Photo photo_00000003

In this scenario, Movistar registered a 4.8% reduction, followed by Entel with a 2.18% reduction and Claro with a 0.9% reduction.

The main cause of this result is the drop-in sales of mobile business, which in the case of Movistar and Entel reached levels of 3.5% and 5% respectively, while Claro indicated a slight growth of 0.3% .

Analysts and experts co-opted this refusal to the strong open competition in mobile telephony, with the attack of new operators and aggressive commercial campaigns.

"The telecommunications industry will continue to be marked by a strong competition, with a high level of penetration in Chile and Peru, where revenue from mobile telephony services has changed significantly after the implementation of commercial strategies for higher services and costs is for the users, "said BCI Corredores report.

In this highly competitive scenario, consultant Roberto Gurovich explained that today's industry focus on selling data packs that "" maintained or even reduces them by competing forces, but they expand bandwidth or how much data can be traded every month. "This is reflected, which is noted, in the peripheral cluster of 132% on people in mobile services.

In this way, the expert says, this purchase affects smaller-scale revenues and an increase in direct discussions under more convenient conditions for customers.

"I think this is the first or a few times, when telecommunications revenues do not go along with the increase in GDP, which has been a fairly positive relationship Global, which highlights, "said Gurovich.

Although the net customer base across the country has expanded 3% with 9,260,638 customers, experts say it is a "mature" market, where the police attack companies to make abusive proposals to argue the subscribers.

Group and Group Management Consultants analyst, Cristián Rojas, argues that more competition is being introduced in the market, with companies such as WOM leading companies to find "a reduction in their income from other players that have earned more market share. "

He added that one factor that explains this phenomenon is that there are no collaborative models between companies that can meet demand in competition areas where the infrastructure does not do more than a viable network. "For example, in areas where two networks are not funded, but one yes, there are no incentives for at least one actor to use," he said.

Scenario & Companies

In its balance sheet last December, Movistar said that the revenue received in the mobile service had reduced by 15.3% compared to the year 2017.

The report announced yesterday at Telefónica headquarters in Madrid stated that the pre-paid segment, as a result of the Chile market, had a general trend affecting a 15% reduction, explaining a decline by a "competitive density environment ".

Also, during the past twelve months, the performance of the fixed-service area also declined, with voice and access revenue being most affected, with a 13.9% reduction, followed by pay television with 7.4%. .

Movistar registered 11,591,500 final customers in 2018, 5.2% less than the previous year, where they closed year with 12,227,900.

On the other hand, Entel -members related to the families of Hurtado and Matte-, in its analysis, indicated that the mobile telephony has reduced the income of the various services, which are related 5.5% with the increase in the data quotas and of the free voice records offered in the evolution of the commercial offer, repayable and ready.

Like Movistar, Entel agrees that the pre-paid segment was most affected, "due to a reduction in consumer payments, the reduction in access costs and increased migration to back-up plans."

He also explained that one of the strongest parts of the company, the mobile business, continues to face a competitive market with aggressive data promotions and reducing mobile lines to reduce subscribers' costs.

In the case of Claro, a subsidiary of Mexico's Mexican America, reported an improvement in its 2018 performance in terms of its final results, with a reduction in its losses and increases in EBIDTA.

"In recent years, we have strengthened the diversification and growth of other businesses, such as stable and corporate, and have created better operational efficiency," said Finance Director Claro Chile, Federico Oguich.

Based on this strategy, the executive said "our EBITDA continues to rise for four years in a row, with a 23.1% increase over last year, achieving a 16.2% improvement in our operating actions mobile, at the level of services mobile, we have also achieved a 0.3% increase in revenue, which is, for a moderate, in line with the competitive environment experienced by the sector, so we are optimistic that the new strategy of Mae & # 39 ; The brand has been positive, which is reflected in the backbone of our portfolio of back-up and home-based customers. "

Image photo_00000002

Source link