02/23/2017

vivo.com.br

Telefônica Group Vivo Vivo Fixed Vivo Mobile
Annual Annual Annual Annual
Quarter Quarter Quarter Quarter
       

 

In this page:Operational and economic data reported by Vivo movel, including the number of cellulars, ARPU, MOU, Churn, SAC, Employees, Revenue, EBITDA margin, EBIT, profit and iInvestments.


Company

 

Vivo is a telecom company owned by Telefonica Group, that acquired it from Portugal Telecom in 2010.

 

 

Operational Performance

 

Thousand
2012 2013 2014 2015 2016 ∆Year
Cellular
76,137 77,245 79,937 73,268 73,778 0.7%
Net Adds 4,583 1,108 2,692 -6,669 509
Prepaid 75.3% 69.3% 64.5% 57.6% 54.7% -
Churn 3.5% 3.8% 3.7% 4.2% 3.4% -
Cities covered by 3G 3,100 3,134 3,289 3,538 3,584

 

 

- 2012 2013 2014 2015 2016 ∆Year
ARPU (R$)
22.6 23.6 23.7 24.4 27.6 13.1%
MOU (Minutes) 115 124 135 135 160 18.3%

 

 

 

Financial Economic Performance

 

Million R$ 2014 2015 2016 ∆Year
Mobile Service Revenue 22,455 23,643 24,343 3.0%
Franchise and Usage 11,482 10,440 8,939 (14.4%)
Network Usage 2,296 1,664 1,299 (21.9%)
Data and VAS 8,308 11,400 14,055 23.3%
Messaging P2P 1,705 1,671 1,506 (9.9%)
Internet 4,943 7,470 10,298 37.9%
Other Data and VAS Revenues 1,660 2,259 2,252 (0.3%)
Other Services 368 138 49 (64.3%)
Revenue of Mobile Handset 1,215 1,494 1,196 (20.0%)
Mobile Net Revenue 23,670 25,136 25,538 1.6%

 

 

Coverage

 

Vivo reached national coverage in 2009, using frequencies in Band L acquired in an auction in 2007 in order to cover the Northeast of Brazil and the region of Franca (in the states of São Paulo).

 

 

Technology

 

Vivo's main technology was CDMA, but the company implemented a GSM network which statrted operating in 2007 and became the main technology in 2008.

 

WCDMA/HSDPA is the technology adopted for 3G (more details), despite having an EVDO network with limited coverage which might be terminated in the future.

 

 

Important Facts

 

04/13/2003 Vivo is launched on the market
04/25/2003 Telesp Celular acquired the control of TCO (Tele Centro Oeste S.A.)
12/04/2005 Vivo announced the incorporation of Tele Leste Cel., Tele Sudeste Cel. and CRT by TCP. The incorporation was accomplished in 02/22/2006
05/02/2006 New fase of reorganization announced: with incorporation of the operators by Global Telecom.
07/20/2006 The Administrative Council of Vivo approved the construction of a network GSM/EDGE scalable to WCDMA, to be increased to its actual CDMA network, whoch will continue working and in expansion. The investment foreseen to the implantation of these network is R$ 1.080 thousands.
July/2007 Telefonica offered US$ 4,1 billion for Portugal Telecom's participation in Vivo. PT didn't accept the offer.
08/03/2007 Vivo announced the purchase of Telemig and Amazônia Celular
April/08 Vivo assume the control of Telemig Celular

 

 

Vivo is a joint venture controled by Telefonica (50%) and Portugal Telecom (50%) established in december 2002 from 7 cellular providers in the Bands A and B.

 

These providers correspond to 5 companies listed in the stock exchange of São Paulo and New York: Telesp Celular Participações S.A., including Global Telecom; Tele Centro Oeste Participações S.A., including NBT; Tele Leste Celular Participações S.A.; Tele Sudeste Celular Participações S.A. and Celular CRT Participações S.A.

 

In 2007, Vivo acquired Telemig Celular getting its control in Apr/08.

 

 

www.vivo.com.br

 

 

Telefonica purchases Portugal Telecom's participation at Vivo

On July 2010, Telefonica reached a deal with Portugal Telecom (PT) to purchase PT's stake at Vivo for € 7.5 billion.

 

On September 23 2010, Anatel approved this acquisition, however, imposed the following commitments to Vivo/Telefonica:

  • Cover, with GSM, 35 cities with no access to this service, 16 of them until March 2011 and the others 19 until December 2011;
  • Cover, with 3G, 83 cities, besides those 2,832 cities already already established, until December 2012
  • Assign transmission capacity, in optical fiber or high speed, to be used (no commercially) by the National Education and Research Network (RNP), which enables the interconnection between public universities set in the state of São Paulo.

Companies must submit periodic reports about the accomplishment of these commitments.

 

 

On 09/27/10, Telefonica paid the first installment (€ 4.5 billion), other payments will be done on 12/30/10 (€ 1.0 billion) and on 10/31/11 ( € 2.0 billion).

 

Telefonica became Vivo's controller and able to promote the integration of its fixed and mobile operations in Brazil.

 

Telefonica also confirmed carring out an auction (OPA) for the acquisition of Vivo's ONs for 80% of the price paid to Portugal Telecom.

 

By this acquisition, Telefonica

 

Acquisition History

 

The process started in 2007. Telefonica made the following propposals to PT:

  • Jul/07: €3.0 billion
  • Jan/10: €5.7 billion
  • Jun/10: €6.5 billion
  • 06/29/10: €7.15 billion

The last proposal made by Telefonica was approved by 74% of those who attended the shareholders' meeting on 06/30/2010, but it was vetoed by the Portuguese government which has Golden Share at PT. The Golden Share assures the Portuguese government the right of veto.

 

On July 8th, the European Union court decided that Portuguese Government's Golden Share judge at PT is illegal. By that, the negotiation between PT and Telefonica was resumed.

 

Telefonica prepared itself to request the dissolution of Holding Brailcel. So, the company could take control over Vivo by purchasing shares in the stock market. Portugal Telecom opened negotiations to buy stake at Oi using the resources from Vivo's sale.

 

On July 27th, Portugal Telecom closed the deal selling to Telepfonica its stake at Vivo for € 7.5 billion and announced an agreement to break into Oi.

 

Consult Teleco's commentary

 

 

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