17
11/2019

Commentaries
0

Oi, 5G, Algar and other highlights

Eduardo Tude

Freepik.com

Oi

  • The final balance of Oi's Financial Cash had retraction of R$ 538 million in August/19, totaling R$ 3,083 million;
  • The operator will need resources to continue accelerating investments, which were R$ 656 million in August/19, totaling R$ 4,583 million in the year, being R$ 2,162 million in Oi Mobile;
  • Oi would have slowed down its debt issuance process of R$ 2.5 billion through secured debt due to the near conclusion of the sale of its 25% stake in Unitel  (Valor);
  • Oi's ON shares appreciated by 3.1% in the week and PN losses of 0.74%.

 

5G

  • Several competitive operators have shown interest in bidding on the 3.5GHz to 5G frequency bid during this week's Telcomp seminar;
  • Councilor Emmanoel, who is considering the proposal of a public consultation for the 5G bidding, told Telesíntese that he should make changes to the proposed rules: "this modeling creates a very large asymmetry, as in the end there may only be two large companies  controlling 120 MHz each of the 5G frequency. Other players will simply be kicked out of this new service. The duopoly in the sector is being institutionalized, which we cannot admit".

 

Results 3Q19 : Algar

 

  • Algar Telecom's gross revenue grew 4.8% when we compare 3Q19 with 3Q18. B2B revenue increased 9.1% and B2C revenue declining (-1.6%). B2B revenue represents 60% of Algar's Telecom revenue;
  • Algar Group's EBITDA margin was 32.8% in the quarter and net profit of R$ 58 million.

 

Other Highlights

  • Vivo's first FTTH franchise is expected to start operating on November 20th in Águas Lindas de Goiás (GO). Local partner Xis Net is responsible for the infrastructure and will use the Vivo Fiber for the sale of broadband plans;
  • Fox has announced that FOX + and FOX Premium services will no longer be able to subscribe directly from the app without a carrier involved. The measure applies to Brazil and other Latin American countries. Commercialization of these linear programming channels over the internet had been suspended by Anatel for breaching the SeAC Act, but Fox had obtained an injunction to continue commercialization.

 

Coming Weeks

 

 

Eduardo Tude

President and partner at Teleco (consultancy company), works since 2002 as analyst of Telecom market, coordinating consulting projects, publishing weekly articles, preparing sector reports and presenting workshops.

Telecom Engineer (IME 1978) and MSc. in Telecom Engineering (INPE 81), Tude is member in the Mobile World Congress’s judging commission for the Global Mobile Awards, in Barcelona, and was also a visiting specialist professor at Unicamp.

Tude had many positions in the management of Telecommunication companies in areas like Mobile Systems (Ericsson), Optical Networks (Pegasus Telecom) and Satellites (INPE).

Archive

2019

2018

2017