Weekly Newsletter

05/27/11 Newsletter 184

3G

3G in Brazil

11.4% of the mobile accesses in the country are 3G

3G in the World

850 million 3G mobile accesses in 1Q11

LTE in the World

20 networks operating commercially in 14 countries

Tim leads growth in April and reduces the difference to Claro

Vivo, TIM and Oi are leaders in 1Q11

Results 1Q11

62 million subscribers, growth of 15% in the year

Mobile Statistics (Preliminary Data)

212.6 million mobile accesses in April; Remaing TDMA cell phones stopped to be operated

Operators' Market Share (Preliminary Data)

Brasil

Difference between TIM and Claro falls to 221 thousand accesses

3G M. Share and Data Terminals (Preliminary Data)

TIM leads data terminals net adds

Vivo leads 3G handsets net adds

Quality Indicators

Vivo hits 100% of the targets in Apr/11

Charging represents 44.1% of the complaints

Performance with Users: Vivo hit 99.4%

SME (Abr/11)

3.6 million SME accesses

Operational Systems (1Q11)

Android has already 36% of the market, Symbian reaches 27%

Cell Phones Exportation/Import. in Manaus (Jan-Mar/11)

4.9 million sold units

Results 1Q11

Telefônica's net revenue hit R$ 4 billion

GVT's net revenue in 1Q11 was 46.8% bigger than in 1Q10

Incumbents Statistics (1Q11)

Accesses: installed, in service, TUP and localities

Brazil

Fixed accesses continues to fall

By State

12.9 million accesses in service in Region I

Fixed Access by Operator (Apr/11)

BrT

Operators Summary

Results gotten by operators in 1Q11

Quality Indicators

Oi reached 91.4% of the targets in Apr/11

Telefônica had most of the complaints in Mar/11

Performance with Users: Brasil Telecom reached 91.1%

Results 1Q11

Latin America

Revenue increased 19.4% in 1Q11

Mobile Telephony

Chile reached Venezuela in number of mobile accesses

Fixed Telephony

Negative growth in South American countries

Telefônica Argentina

Investments increased 140% in one year

Argentina (Mar/11)

Mobile Telephony

Density: 140.7 cell./100 inhabitants

Fixed Telephony
Growth of 1.98% in one year

Uruguay (2010)

Broadband was the service holding the biggest growth

Results 1Q11

Group

Telefônica in Latin America had the biggest annual growth

Europe

Broadband was the service holding the biggest growth in the quarter

Telefônica Spain

Only data services got positive growth

EBITDA margin hit 29.4%

Net profit increased 54.9% in the first quarter

Data revenue grew 24% in 12 months

NTT DoCoMo

LTE rocketed 2500%

China Mobile

MMS increased more than SMS in a quarterly and annual comparison

Investments in Russia reached US$ 1.5 billion, growth of 358% in 4Q10

United States

Mobile Telephony

T-Mobile's base reduced 0.3% in 1Q11

Internet in Brazil (Mar/11)

43.2 million active users

Broadband Market Share in 1Q11

Oi leads with 31.1% of market share

Results 1Q11

Net profit jumped 54.4% in the quarter

Exportation and Importation: Motorola and Nokia 2011

Nokia's importations hit US$ 279 million (Jan-Apr/11)

Pay TV Statistics by State (Mar/11)

Total of 10.4 million accesses, growth of 2.4%

Channels

Operators offer new channels

Results 1Q11

Uol's net revenue hit R$ 297.4 million

Telecom Groups

América Móvil's group (Claro/Embratel/Net) overtook Oi in net revenue

Congresses, Fairs and Seminars

Next events:

24 a 27 /05: GSMA Mobile Money Summit