Vivo's PTT launch may lead to customer wins in interior, small cities, analyst says

- Wednesday, July 20, 2011

Vivo's PTT launch may lead to customer wins in interior, small cities, analyst says

The launch of push-to-talk (PTT) services by Brazilian telecoms operator Vivo may be a good opportunity for it to attract new customers in the country's interior and in small localities, consultancy firm Frost & Sullivan ICT manager José Roberto Mavignier told BNamericas.

"Nextel has a PTT service in the largest urban areas, such as São Paulo, Rio de Janeiro and Curitiba. The lack of nationwide coverage by Nextel in PTT services will enable Vivo to attract new customers in small cities and towns in the interior of the country," the analyst said. "It's in these areas where the national economy is growing most and where telecoms services have a lower penetration."

Mavignier also said that with the launch, Vivo may be preparing a strategy to defend its client base, with Nextel's entry into the mobile telephony market and launch of 3G services. Nextel's entry into the local mobile market is likely to take place in the second half of 2012.

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According to press reports, Vivo has launched PTT services in Rio de Janeiro and plans to launch them in other states in August this year. The service is seen by the company as a complement to its postpaid plan. Vivo's new PTT service is called Vivo Direto and will have cost of 29.9 reais (US$19) a month, which is added to the monthly postpaid package.

Vivo currently leads the mobile telephony market in Brazil, according to the latest data from local telecoms regulator Anatel.