The Brazilian cellular telephony market must pass the 100 million consumers mark these days.
This statement is based on a study called “Profile of the Brazilian Cellular Telephony Consumer”.
The Brazilian market has grown from 7 million devices in 1998 to an estimated 101 million by the end of 2006. This figure will represent a penetration position of 54% by the end of this year. Eight years ago, this index was just 4%. The Brazilian market still shows a growth potential in revenue and penetration, especially in the lower income classes. The penetration in the lower income classes has reached 45% compared to the 80% registered in upper income classes. On average, the Brazilian penetration in October 2006 was 51,6%, an index much lower than the 89% occurred in developed countries.
A study has traced the profile of the Brazilian people who own mobile phones according to the income, education level and age. The consumers with a monthly income of up to R$ 480 (222.5 US$) are the largest part, with 65%, followed by the ones with an income between R$ 481 (223 US$) and R$ 1.199 (555.7 US$) (26%) and the ones with income over R$ 1.200 (556 US$) (10%).
In relation to the education level, 14% have college graduation, 49% have finished high school and 37% have just finished fundamental school. The study shows a great concentration of users in the age between 14 and 30 years old (50%); 38% between 31 and 50 years old and 12% over 51 years old.
The biggest markets are concentrated in the South and Southeast regions. São Paulo is the largest, with 23,5 million lines, followed by Minas Gerais, with 10,6 million, and Rio de Janeiro with 10,2 million.
81% of the cellular phone lines in the Brazilian market are prepaid. Nearly 67% of those users come from the lower income classes. In spite of the lower participation of the postpaid consumers, the amount spent by this audience reaches 42% of the total whereas the prepaid represents 58%.