Ricardo Grau CEO of Telemig Celular

Brazil privatized the telecommunications sector in 1998 and it has been showing robust growth since then, particularly the cellular segment. According to national regulator Anatel, there were 68.6 million cellular customers in the country at the end of March this year, up 39.6% from the same period in 2004.

The state of Minas Gerais has been swift to latch on to business-related technology opportunities, and the main companies offering fixed telephone lines and other communication services such as internet, data transmission and cable are Telemar, Embratel and CTBC. Telemar, the largest, has approximately 4.8 million fixed lines.

Of the four operators providing cellular services within the state, Telemig Celular is the largest and also the only one that is independent. “We have a 51% share of the total cellular market today and around 70% in the contract sector,” says company CEO Ricardo Grau. Also in the cellular market are TIM Brazil, a unit of Telecom Italia; Claro, owned by Mexico’s America Movil; and Oi, which is part of Telemar. Mr. Grau is not daunted by the competition, however, and stresses that his company is very client focused, which helps create customer loyalty. “We were the first to launch a customer relationship and reward program – we spend money on retaining our clients,” he says.

Telemig is concentrating on social development and support within the local community to differentiate itself from other mobile operators. Indeed, the company has been improving its market position steadily, with profits increasing by 4% in the first quarter of 2005 compared to a year ago – and 2004 was a year of record earnings. In addition, the company has been licensed to provide new services in the west of Minas Gerais, thereby extending its coverage to over 500 cities and towns state-wide.