Teleco Blog

19
6/2022

Reduction of ICMS was approved, Oi, V.tal, 5G and more highlights

Eduardo Tude

ICMS

The Chamber of Deputies concluded the approval of PLP18/22, which reduces ICMS for communications and other sectors to the percentage applied to essential services (17% to 18%). The reduction takes effect as soon as sanctioned by the Presidency of the Republic.
Undoubtedly good news for the sector!!!

Oi and V.tal

Amos Genish has been announced as CEO and chairman of the board of directors of V.tal. The company is expected to issue debentures worth R$ 5.7 billion to finance part of its 2021 and 2022 investments.
Oi's ON share showed loss of 10.9% in the week and PN share and loss of 10.2%.
The Ibovespa depreciated by 5.4% in the week. Oi's ON share accumulates a loss of 35.5% in the year and the PN of 24.2%.

In Brasília, EAF started the campaign for those who are part of any social program of the Federal Government to register on the “Siga Antenado” website to receive a free kit for migration from the satellite dish to the Banda Ku.

Other Highlights

TIM has already released roaming on its network for all customers it acquired from Oi Mobile. Claro released it in 16 of the 22 area codes.
Brisanet ended May 2022 with 951 thousand fixed broadband accesses and 5.4 million homes passed. It accumulated net adds of 108 thousand fixed broadband accesses in the first 5 months of the year, corresponding to 11.4% of the total.
The National Data Protection Authority (ANPD) will become an autarchy of a special nature, as with regulatory agencies, as established in Provisional Measure (MP) 1.124/2022.
10.4 million cell phones were sold in 1Q22 in Brazil, 6% less than in 1Q21. 9.9 million smartphones were sold (-4%) and 507 thousand traditional cell phones (-24%). Worldwide sales of smartphones also fell (-8.9%). Source IDC.

Coming Weeks

June 21^st: Oi's 1Q22 Results.

12
6/2022

5G, Oi concluded the sale of V.tal and more

Eduardo Tude

Data measurement carried out by Open Signal reveal that the average download speed of users connected with 5G in Brazil is 2.4 times higher than that of those connected with 4G. This difference will increase when 5G networks start using the 3.5 GHz band.
Peak download speed for 5G is 530 Mbps and 162 Mbps for 4G.
EAF, responsible for the migration of users from satellite dishes to the ku band, launched the Siga Antenado website with information about this process.
https://sigaantenado.com.br/
4% of TIM's smartphone base is already 5G and nd 79% of smartphones sold by the operator.
Several entities in the city of Campinas launched the Open 5G @ Campinas initiative.

Oi concluded the sale of the control of V.tal to funds managed by BTG. The company will continue to be a shareholder of V.tal with a 34.7% stake.
This condition allowed the transfer of reversible assets from the fixed telephony concession that will continue to be subject to the reversibility regime.
The next steps will be: the incorporation of Globenet by V.tal (which must also be authorized by the USA), the elimination of duplication of fixed telephony authorizations and the inventory of Globenet's assets that would be subject to the reversibility regime.
From now on, Oi will pay an estimated monthly amount of R$ 100 million for the use of V.tal's network. (Teletime)
Like Claro, Oi also launched its linear channels streaming service.
Oi's ON shares presented loss of 15.4% in the week and PN decreased 11.5%.
The Ibovespa dropped by 5.1% in the week. Oi's ON share accumulates a loss of 27.6% in the year and the PN of 15.6%.

Portability between mobile operators

Claro had the highest positive balance of numbers ported on cell phones in the year until May (641 thousand), followed by Vivo (462 thousand). TIM (-59 thousand) and Oi (-1,098 thousand) had a negative balance.

Other Highlights

Councilor Moisés Moreira is the new vice-president of Anatel.
The FUST Management Board held its first ordinary meeting.
Vivo Fibra arrived in the city of São Pedro through its Terra franchise.
From now on, the prefix 0303 must be used for all the calls from active telemarketing.
The European Union has established that by 2024 all cell phones, tablets and cameras must have a USB-C port. Apple is already preparing to adapt iPhones that currently use the Lightning port.

5
6/2022

5G is postponed in Brazilian Capitals and more highlights

Eduardo Tude

The date on which the use of the 3.5 Ghz band will be authorized in Capitals is set for September, allowing for a more massive entry of 5G.
Anatel's Board of Directors approved Gaispi's recommendation and extended the deadline for spectrum cleaning by 2 months, due to the impossibility of distributing kits for migration to the Ku Band in a shorter period.
Despite the postponement, 42 TV channels are also being broadcast in the Ku band using Embratel StarOne D2 or Star One C4 satellites, which are located at 70º West.

Oi and the Attorney General's Office (AGU) signed an agreement that reduced Oi's debt with Anatel from R$ 20.237 billion to R $9.109 billion. From this amount, the value paid by the Company through escrow deposits will be deducted, resulting in a debt balance of R$ 7.335 billion, to be settled in 126 non-linear installments by April 2033.
Despite being significant and positive to reduce uncertainties regarding the company, the market expected an agreement with a greater reduction and Oi's ON shares fell by 14.5% in the week and PN by 9.0%.
Ibovespa decreased by 0.7% in the week. Oi's ON share accumulates a loss of 14.5% in the year and the PN of 4.7%.

Other Highlights

Anatel announced a series of measures to combat abusive telemarketing and fraud, which can result in a fine of up to R$ 50 million for those responsible.
Anatel will put to public consultation the proposal to create a single regulation comprehending all telecommunications services.
TIM completed the upgrade of its LPWA networks from NB-IoT 1 protocol (3GPP release 13) to release 14 (called NB-IoT 2).

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).

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Reduction of ICMS was approved, Oi, V.tal, 5G and more highlights

5G, Oi concluded the sale of V.tal and more

5G is postponed in Brazilian Capitals and more highlights