Weekly Newsletter

07/28/11 Newsletter 189

3G

3G in the World

100% of the WCDMA operators launched HSPA

Claro improved its performance in 2Q11

Results 2Q11

Net adds reached 2.1 million mobile accesses; MOU and ARPU dropped in the quarter and year

Operators Market Share - Jun/11 (Preliminary Data)

By State

Tim led growth in SP

By Area Code

TIM hit 151 thousand net adds in A. Code 11

Regions

Claro led growth in regions I and II

3G Market Share and Data Terminals (Jun/11)

Claro lost Market Share

Claro gained Market Share and remained as leader

Users Profile - 2010 (TIC Domiciles)

49% of the cellular users sent and/or received SMS; 22% accessed music

Quality Indicators (Jun/11)

Tim and Vivo hit 100% of the targets

Results 2Q11

iPhone registered 9.1% growth in sales; iPod fell 16.4%

Nokia's cell phone sales dropped 18.4%

Cell Phones Sales in the World

Apple's cell phone sales rocketed 142.2% in 2Q11 if compared with 2Q10

Smartphones

Nokia's sales fell 31%

Results 2Q11

Profit of R$ 178 million in the quarter, falling 13.7% over 2Q10

Quality Indicators (Jun/11)

Oi met 89.3% of the targets

Results 2Q11

Brazilian market had the biggest growth in the quarter; Capex soared 135%

International Long Distance calls had the biggest growth among main revenues

South America had the biggest ARPU and the biggest investments from the group

Broadband was the telecom service holding the biggest growth in 1Q11; Mobile Telephony dropped 1.3%

Results 2Q11

Revenue increased 2.0%

Verizon Wireless' net adds grew 24.3%

98.6 million mobile accesses and 41.2 million fixed telephones

AT&T Wireless counted 68 million postpaid mobile accesses, but prepaid had the biggest growth (14.8%) in the year

Mobile Telephony

Verizon Wireless led the quantity of cellulars in the country, 106.3 million

Fixed Telephony

AT&T counted 41.2 million fixed telephones, Verizon had 25 million

Broadband

AT&T reached 16.4 million accesses; Verizon counted 8.5 milhões

In 1Q11, operational profit dropped in all the countries where the carrier operates

China Unicom was the mobile operator to get the biggest growth in 1Q11 and in the last 12 months

Broadband growth hit 2% in 1Q11 and 6.8% in one year

Results 2Q11

Ebitda grew 24.2% and net profit 121.2% in one year

Results 2Q11

EBITA dropped 20.7% and net profit is 22% smaller

Sales increased 14.9% in the quarter

Vendors in the World 2Q11

Ericsson's revenue jumped 40.7% in comparison with 2Q10

Vendors Infrastructure 2Q11

Nokia Siemens' revenue increased 39.5%

Congresses, Fairs and Seminars

Next events:

Aug 17: Workshop - Telecom Market Update 2Q11

Aug 18: Workshop - Cellular Market Update 2Q11