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11/18/2011

Telecom Groups in Brazil

This page: Presents informations about the participation of the main groups in the telecommunication market of Brazil.

Main Telecom Groups in Brazil

The main Groups in the telecom market in Brazil are:

	Fixed	Cellular	Broadband	Pay TV.
Telefonica/Vivo	Telesp	Vivo	Telesp	TVA
Oi	Oi	Oi	Oi	Oi
Claro/Embratel/Net	Embratel	Claro	Net and Embratel	Net and Embratel
Tim	*	Tim	-	-
Vivendi	GVT	-	GVT	-
Nextel	-	**	-	-

* TIM operates long distance for fixed telephony and has a small participation in local telephony.

** Nextel is a SME (Trunking) operator and acquired 3G license in 2010.

Recent acquisitions of these groups

Aquisition	Announcement	Anatel's Approval
Telesp S. A. Incorpora a Vivo	Mar/11	Mar/11
Portugal Telecom announces agreement to break into Oi	Jul/10	Oct/10
Vivo acquires Portugal Telecom's stake at Vivo	Jul/10	Sep/10
Tim purchases Intelig	Mar/09	May/10
Vivendi acquires GVT	Nov/09	Nov/09
Net purchases ESC 90	Sep/08	Jun/09
Oi acquires Brasil Telecom (more details)	April/08	Dec/08
Vivo acquires Telemig Celular	Aug/07	Oct/07
Oi acquires Amazônia celular	Dec/07	Mar/08
Net acquires BIGTV	Dec/07	Dec/08
Net acquires Vivax	Oct/06	May/07
Oi acquires Way TV	Jul/06	Oct/07
Telefonica acquires TVA*	Oct/06	Oct/07
Merger of Sky with DirecTV	Oct/04	Nov/05
Telmex acquired participation at Net incorporated in Sep/05 at Embratel	Jun/04	Mar/06
Telmex purchases Embratel	Mar/04	Jun/04
Embratel purchases Vesper	Aug/03	Nov/03
Portugal Telecom and Telefonica unified their cellular operations in Brazil forming Vivo	2002	-
Claro was formed by the acquisition of many cellular operators between 2000 and 2005.	-	-

*MMDS and participation in Cable TV

Participation of the Groups in 3Q11

3Q11	Revenue (%)		Market Share (Accesses)
3Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	25.8%	25.4%	26.0%	29.5%	22.3%	5.8%
Oi	22.8%	21.3%	44.7%	18.9%	29.9%	2.8%
Claro/Embratel/Net	22.7%	24.5%	18.7%	25.3%	26.0%	55.0%
Tim	13.3%	13.4%	1.4%	26.0%	-	-
Nextel	4.9%	5.2%	-	-	-	-
GVT	3.1%	2.7%	6.1%	-	9.0%	-
Others	7.4%	7.4%	3.1%	0.3%	12.7%	36.4%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

3Q11	Revenue R$ Million		Accesses (Thousands)
3Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	12,319	8,262	11,091	67,038	3,551	693
Oi	10,925	6,940	19,074**	42,872	4,776	330
Claro/Embratel/Net	10,836	7,951	8,000	57,514	4,155	6,534
Tim	6,382	4,371	600	59,210	-	-
Nextel	2,356	1,683	-	*	-	-
GVT	1,462	894	2,600	-	1,442	-
Others	3,547	2,411	1,336	718	2,033	4,332
Total Brazil	47,827	32,536	42,701	227,352	15,957	11,889

* Nextel counted 3,941 thousand SME accesses in 3Q11. Those aren't included in the total of cellulars in Brazil by Anatel.

**Anatel's data, Oi published a smaller quantity.

Participation of the Groups in 2Q11

2Q11	Revenue (%)		Market Share (Accesses)
2Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	26.0%	26.0%	26.2%	29.5%	22.8%	6.1%
Oi	23.8%	22.3%	45.7%	19.1%	30.5%	3.1%
Claro/Embratel/Net	23.0%	24.4%	18.2%	25.6%	25.4%	53.7%
Tim	13.2%	13.4%	1.4%	25.5%	-	-
Nextel	4.2%	4.5%	-	-	-	-
GVT	2.6%	2.4%	5.9%	-	8.8%	-
Others	7.1%	7.1%	2.7%	0.3%	12.4%	37.1%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

2Q11	Revenue R$ Million		Accesses (Thousands)
2Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	12,116	8,231	11,151	64,049	3,470	682
Oi	11,099	7,077	19,438**	41,510	4,642	344
Claro/Embratel/Net	10,710	7,722	7,727	55,534	3,863	5,962
Tim	6,151	4,252	590	55,525	-	-
Nextel	1,980	1,414	-	*	-	-
GVT***	1,222	747	2,521	-	1,346	-
Others	3,328	2,264	1,128	728	1,892	4,120
Total Brazil	46,605	31,706	42,555	217,346	15,213	11,108

* Nextel counted 3,713 thousand SME accesses in 2Q11. Those aren't included in the total of cellulars in Brazil by Anatel.

**Anatel's data, Oi published a smaller quantity. *** Revenue data about 2Q11

Participation of the Groups in 1Q11

1Q11	Revenue (%)		Market Share (Accesses)
1Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	27.5%	28.6%	26.6%	29.5%	23.3%	4.9%
Oi	24.6%	22.6%	47.6%	19.7%	31.1%	3.0%
Claro/Embratel/Net	23.1%	24.3%	16.7%	25.4%	25.4%	54.7%
Tim	12.3%	12.2%	-	25.1%	-	-
Nextel	4.2%	4.3%	-	-	-	-
GVT	2.8%	2.4%	5.8%	-	8.5%	-
Others	5.6%	5.6%	3.3%	0.3%	11.6%	37.4%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

América Móvil Group (Claro/Embratel/Net) overtakes Oi in Net Revenue

América Móvil's Group (Claro/Embratel/Net) Group presented net revenue of R$ 7.5 billion in 1Q11, it was bigger than Oi's in the quarter (R$ 6.9 billion). With this result, Oi falls to the third position in net adds in Brazil.

The value of R$ 7,5 billion was gotten by Teleco by counting the net adds of the 3 operators (Claro, Embratel and Net). Group's net revenue drops to R$ 7.0 billion (what's still superior to Oi's) if we consider Claro/Embratel's addition of the consolidated revenue, which eliminates revenues between these two companies, with Net's revenue.

Oi will have to resume growth of its revenue in the next quarter in order to recover the second position in net revenue. In 1Q11 its revenue dropped 5% in the quarter and 7.1% in the year, while América Móvil's net revenue in Brazil increased 4.7% and 10.5% respectively.

1Q11	Revenue R$ Million		Accesses (Thousands)
1Q11	Gross	Net	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	12,183	8,778	11,176	62,061	3,377	509
Oi	10,899	6,933	20,006**	41,443	4,513	311
Claro/Embratel/Net	10,220	7,482	7,000	53,438	3,684	5,704
Tim	5,440	3,752	-	52,849	-	-
Nextel	1,856	1,326	-	*	-	-
GVT	1,222	747	2,450	-	1,232	-
Others	2,475	1,717	1,400	719	1,684	3,895
Total Brazil	42,295	30,735	42,032	210,510	10,419	10,419

* Nextel had 3,509 thousand SME accesses in 1Q11 that aren't included in the number of mobile accesses in Brazil.

**Anatel's data.

Participation of the Groups in 2010

2010	Revenue (%)		Market Share (Accesses)
2010	Gross	Net	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	28.0%	28.5%	26.9%	29.7%	24.0%	5.0%
Oi	27.3%	24.8%	47.7%	19.4%	31.6%	2.8%
Claro/Embratel/Net	21.6%	22.9%	16.7%	25.4%	25.5%	53.1%
Tim	11.3%	12.2%	-	25.1%	-	-
Nextel	3.7%	3.8%	-	-	-	-
GVT	2.4%	2.0%	5.4%	-	7.9%	-
Others	5.8%	5.8%	3.3%	0.4%	10.9%	39.1%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

2010	Revenue R$ Millions		Accesses (Thousands)
2010	Gross	Net	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	47,076	33,862	11,309	60,293	3,317	486
Oi	45,928	29,479	20,019	39,273	4,354	275
Claro/Embratel/Net	36,304	27,201	7,000	51,638	3,524	5,189
Tim	19,038	14,457	-	51,015	-	-
Nextel	6,165	4,502	-	*	-	-
GVT	3,966	2,429	2,275	-	1,095	-
Others	9,732	6,874	1,398	725	1,510	3,819
Total Brazil	168,209	118,804	42,000	202,944	13,800	9,769

Participation of the Groups in 2009

2009	Gross revenue	Market Share (Accesses) 2009
2009	4Q09	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	29.1%	27.0%	29.7%	23.1%	6.5%
Oi	28.9%	51.2%	20.8%	37.0%	3.1%
Claro/Embratel/Net	21.8%	15.5%	25.5%	25.3%	53.6%
Tim	11.4%	-	23.6%	-	-
GVT	1.8%	3.5%	-	5.9%	-
Outros	7.0%	2.9	0.3%	8.7%	36.3%
Total Brasil	100.0%	100.0%	100.0%	100.0%	100.0%

Telefonica is the main Telecommunication Group in Brazil with gross revenue of R$ 46 billions in the accumulated of 2009.

2009	Gross Revenue R$ Milhões	Accesses (Thousands) 2009
2009	2009	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	46,028	11,250	51,744	2,636	487
Oi	45,708	21,344	36,112	4,211	234
Claro/Embratel/Net	34,435	6,450	44,401	2,882	4,007
Tim	18,079	-	41,102	-	-
GVT	2,771	1,442	-	669	-
Outros	11,008	1,214	600	989	2,709
Total Brasil	158,029	41,700	173,959	11,387	7,473

Participation of the Groups in 3Q09

	Gross revenue		Market Share (Accesses) 3Q09
	Jan-Sep/09	3Q09	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	29.0%	28.3%	27.2%	29.4%	23.2%	7.2%
Oi	28.9%	28.8%	51.6%	21.0%	37.3%	0.9%
Claro/Embratel/Net	23.0%	23.5%	15.2%	25.5%	25.1%	51.4%
Tim	11.3%	11.5%	-	23.8%	-	-
Others	7.7%	8.0%	5.9%	0.3%	14.4%	40.6%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

Telefonica is the biggest Brazilian Telecommunication Group holding gross revenue of R$ 34.2 billion in accumulated in 2009. However, in 3Q09, Oi overcame Telefonica in revenue with R$ 11.6 billions.

	Gross revenue R$ Milions		Accesses (Thousands) 3Q09
	Jan-Sep/09	3Q09	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	34,197	11,411	11,333	48,847	2,578	508
Oi	34,023	11,597	21,479	34,818	4,142	62
Claro/Embratel/Net	27,160	9,461	6,338	42,278	2,790	3,645
Tim	13,369	4,651	-	39,600	-	-
Others	9,126	3,208	2,450	578	1,598	2,883
Total Brazil	117,874	40,328	41,630	166,121	11,108	7,098

2Q09	Gross Revenue	Market Share (Accesses)
2Q09	Gross Revenue	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	29.0%	27.5%	29.3%	25.3%	7.8%
Oi	28.5%	52.1%	21.3%	37.8%	0.9%
Claro/Embratel/Net	22.9%	14.5%	25.4%	24.2%	52.6%
Tim	11.5%	-	23.7%	-	-
Others	8.0%	5.9%	0.3%	12.7%	38.7%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%

2Q09	Gross Revenue R$ Million	Accesses (Thousands)
2Q09	Gross Revenue R$ Million	Fixed	Mobile	Broadband	Pay TV
Telefonica/Vivo	11,368	11,475	46,819	2,727	514
Oi	11,184	21,789	33,932	4,066	62
Claro/Embratel/Net	8,982	6,081	40,486	2,605	3,480
Tim	4,505	-	37,826	-	-
Others	3,150	2,456	551	1,362	2,557
Total Brazil	39,189	41,800	159,614	10,760	6,613

1Q09	Gross Revenue	Market Share (Accesses)
1Q09	Gross Revenue	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	29.8%	27.6%	29.7%	25.5%	7.6%
Oi/Brt	29.3%	52.1%	20.7%	37.7%	0.9%
Claro/Embratel/Net	22.8%	13.9%	25.8%	23.5%	50.6%
Tim	11.0%	-	23.5%	-	-
Others	7.1%	6.4%	0.3%	13.3%	40.8%
Total Brazil	100.0%	100.0%	100.0%	100.0%	100.0%

1Q09	Gross Revenue R$ Millions	Accesses (Thousands)
1Q09	Gross Revenue R$ Millions	Fixed	Cellulars	Broadband	Pay TV
Telefonica/Vivo	11,418	11,583	45,641	2,657	502
Oi/Brt	11,242	21,826	31,835	3,938	61
Claro/Embratel/Net	8,717	5,836	39,587	2,452	3,347
Tim	4,212	-	36,096	-	-
Others	2,715	2,670	514	1,388	2,700
Total Brazil	38,304	41,915	150,673	10,435	6,610