4 lte, an operator’s reality

LTE, an operator’s reality_

Digital Revolution_

CHANGING_ The world is

traffic is being generated

A huge amount of

Bandwidth and data consumption increased by 24%

Web traffic increased by 35%

Youtube data consumption increased by 32%

Video streaming and P2P increased by 11% e 13%

Instant messaging traffic increased by 363%

Social media increased by 168%

Facebook videos increased traffic by 389%

Data consumption and Youtube increased by 129%

Video streaming, including Youtube, 1,797%

Traffic Explosion_

And is deeply changing the network operators’ businesses

Energy Business

If mobile internet operators were in the

885

597

2569238

+2.229%

2012 2011 2010 2009 2008

121117113107103

2011 2010 2009 2008

+18%

2012

Global Mobile Internet Traffic (Petabytes)

We would build our capacity as if 41 power plants like Itaipú

were activated every year

Brazil's Installed Capacity (GW)

What have we got to make this Revolution_

The mobile telephony evolution_ We have seen a technological revolution over the last 3 decades

1G – 1st Generation

_Wireless communication, anywhere

_Analog mobile phones

Voice only

2G – 2nd Generation

_Text messages and the first mobile internet connection for e-mails

What is it?

What it means

1998 1990

_Voice and data

(SMS and WAP)


_First apps and the possibility to browse the web anytime, anywhere

_Better browsing experience. The whole world in your pocket!

3G – 3rd Generation

_More speed to data

3G Plus – Advanced 3rd gen

_Even more speed and capacity

2012 2008

What is it?

What it means

2013

4G – 4th Generation

_A more efficient approach to data


What is it?

2015?

5G – 5th Gen

_What’s next?

8 months preparation

It all started long before the 2.5 GHz auction_ 4G

‗ Core team assembly on October 2011

‗ Technology research

‗ International benchmark

‗ Investment scenario simulations

Result Winning the main lot

These principles guided us on the 2.5 GHz auction

_We are an internet company. This is

our DNA

_Our company has the largest

customer base and the market

leadership

_That’s why we’ve bought the most

adequate lot for our needs:

20 + 20 MHz will enable us to

connect more people

A Project with Ambitious Goals_ Cover all 2014 FIFA World Cup host and

subhost cities until the end of this year

2.5GHz Band

This high frequency band demands at least 2 times more towers if compared to 3G frequencies

We have more than 250 different municipality laws regulating site construction in Brazil

_

_

Coverage Timetable –

Anatel Goals

December 2013 –

FIFA 2014 World Cup Hosts

and Subhosts

May 2014 –

State capitals and

municipalities with more

than 500k inhabitants

December 2015 –



December 2016 –



Throughout Brazil

We are committed to continue expanding our 4G coverage

We have launched 4G in 69 cities of Brazil

Fortaleza - CE

Recife - PE

Salvador - BA

Belo Horizonte - MG

Rio de Janeiro- RJ

Brasília - DF

São Paulo - SP

And will be present in

74 municipalities until

the end of the year

4G connections Market Share

45%

17%

Operator 1

26%

12%

Operator 3

Operator 2

Vivo is the most prepared operator

to offer 4G!

... We are leaders on 3G and 3G Plus coverage

Our coverage is larger than all other operators' coverage put

together!

_ COVERAGE OPERATOR 1 593 municipalities

_ COVERAGE OPERATOR 2 734 municipalities

_ COVERAGE OPERATOR 3 1.119 municipalities

_ COVERAGE 3.121 municipalities

Our goal is to provide the best connection to all Brazilian people_

Always providing the most innovative products on the market_

We are an Internet Company!_

To all kinds of customer needs and all types of

use

In Vivo, 4G is not only 10x faster then 3G Here, our 4G is Plus:

With coverage and quality recognized by everyone

The only one with multiconexion

We have an extensive portfolio to customers demanding 4G..._

For tablets and

notebooks To home For smartphones

Vivo Box at home_

_4G Plus

directly to the

Box at your

home

_Up to 5

connections

through Wi-Fi

4G also has

You can use your 4G Smartphone Plan with additional devices to stay connected with much more speed

For smartphones, tablets and notebooks

Innovative concept: Only plan

in the market with data sharing

Attend customers in need for

multiconexion, looking for

convenience and economy

Great opportunity to capture

disconnected devices

Vivo Sustainable Base Station: Telefonica Brasil innovates to push forward infrastructure_

Low visual impact

Easily integrated to urban environments Technology made available to all operators

Our future_ A customer oriented digital telco

Constantly improving

connectivity offerings

Developing new digital solutions

So that our customers can take full

advantage of the digital world

Thank you_

4 lte, an operator’s reality

Technology

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