The subsidies are smaller as operators look for more creative promotions to retain customers and recover margins. |
This is a great move for Vivo, and the surprise is that it didn't happen earlier. |
This was the first year-on-year increase since last August, when operators reduced subsidies and competition weakened. |
We believe lower growth in the past quarter may support some margin recovery, translating into a brighter outlook for 2006 [in Brazil's mobile phone segment]. |