Claro reaps MNP rewards, yet market share continues to decline

13 Jul 2012

The use of mobile number portability (MNP) in Colombia still remains limited, almost a year after its introduction, according to the most recent results published by telecoms regulator the Communication Regulation Commission (CRC). Since introduction in August 2011, a total of 441,163 customers have switched provider and kept their number in a market of more than 45 million wireless subscribers. The greatest concentration of ports was in Q1 2012 when 167,914 people moved operators, with the number dropping to 132,344 in Q2 2012. Telefonica Moviles Colombia, which uses the Movistar brand of its Spanish parent, has suffered the worst from MNP, with net losses of 159,760. Comcel, recently rebranded under the preferred Claro moniker of its parent company America Movil, reaped the greatest reward from the scheme, with net additions of 85,426 from MNP, whilst Tigo was close behind with 65,058 net additions. Mobile virtual network operator (MVNO) Uff Movil also added 8,866 new customers thanks to MNP.

However, the use of MNP is still fairly marginal and the flow of customers is not representative of the majority of users. Whilst Claro saw the greatest number of customers moving to its network and keeping their numbers, according to TeleGeography’s GlobalComms Database, Claro has in fact seen a reduction in its market share since the introduction of MNP, whilst its two main rivals have increased their shares of the market. At June 2011, Claro reigned over the wireless sector with a 67.8% share of segment, compared to 22.0% and 10.2% attributed to Movistar and Tigo respectively. By end-March 2012, Claro had seen its lead eroded somewhat, dropping to 63.1% of the market against 26.0% and 10.9%.

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