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Vivo Participações S.A.
                    2Q06 Results




    July 21, 2006
1
Executive Summary
                    Challenges                • Stabilize Market Share                    • Promote Revenue Growth




                                                     Operational Highlight


Increase in the post-paid outgoing revenue of 15.3% in SP and 21.2% in RJ/ES
Increase in the post-paid outgoing ARPU of 4% in SP and 9% in RJ/ES
Decrease in the inbound traffic with migration F-M to M-M/ Decrease in interconnection revenue
Inactive clients write-off with effects in churn but without effects in revenues




2
Introduction

Strong Commercial Activity    Competitive market
                              Mother's Day/ Valentine's Day
                              Commercial Campaigns



Client Base                   Write-off of inactive clients
                              Impact in Churn
                              No effect on revenue

Revenues                      Outgoing revenues grew in relation to 2Q05
                              Pressure on prices with strong competition


Provision for Bad Debt(PDD)   Impact of R$ 161.5 MM QoQ
                              Normalized PDD of R$177.2 MM or 4.7% of gross revenue


EBITDA                        Reduction due to non higher provisions
                              Normalized value: R$467.8 MM and 18.0% margin


Net Debt                      Manageable volume and reduction of financial costs



3
Introduction


Advances      Quality : 98% of Anatel’s goals achieved
              Network completely authenticated
              78% of client base centralized in a single billing system
              57% of client base centralized on prepaid platforms
              72% of client base centralized at the front office



Short Term    Combat Fraud and Cloning
              Consolidation/ Rationalization of IT/IS
              National Coverage
              Dedicated attention to Corporate Segment
              Corporate Restructuring


Medium Term   Launching of GSM’s network (overlay)
              Competition and evolution in 3G
              Maintenance of Leadership in 850MHz and better network
              Costs Reduction
              No impact of CapEx




4
Client Base

             + 0.3%            - 5.4%



    28,446            28,525             30,138
                                                       30,348 total without
                                                       write-off of clients

                               - 8.6%    5.761
             -4.4%
    5.511             5.268


                                                  • Retention and loyalty programs;

                                                  • Focus on the value clients;
             +1.4%
                                - 4.6%   24.377
    22.935            23.257                      • More than 78% of the clients base
                                                  integrated to the unified IT/IS
                                                  platforms.



    2Q05              2Q06               1Q06

               Prepaid     Post-paid




5
Leadership in Distribution & Coverage
                                          Only Operator in 3G



              Channels of distribution                            Coverage



      8,364
                       6,953                              2,256
     327                                 6,116
                       104                                               1,759
                                         91                                                1,660
    3,231
                     2,795
                                    2,118




    4,806
                     4,054          3,907




    Vivo              C1             C2                   Vivo            C1                C2

       Retail    Third Party   Own Stores                         Municipalities Covered




6
2Q06 Main Marketing Actions
    Program based on Points                        Mother’s Day




                                                                                 Soccer World Cup 2006




    Change handsets using the                   Buy a handset and get
    program based on points.                    the second for free.


    Talk more Vivo Prepaid                     Recharge in Double


                                                                                When buying or changing handset, the
                                                                                client speaks for how long he/she
                                                                                wants for only R$0.30/min in local
                                                                                calls or long distance calls from Vivo to
                                                                                Vivo




                                             Vivo offers the recharge value
      Client speaks for free with any Vivo   in bonus for local calls from
      or fixed phone after the 3rd minute    Vivo to Vivo to speak in double.


7
Loyalty and Retention
                                                               Focus Value Clients
                                     LOYALTY                                                          RETENTION
    Changes for
    Segmented




                                                                              Segmented
                       Incentive to retain Prepaid client through discounts
      Prepaid




                                                                                 Offer
                                                                                           Retention of clients through segmented offers
                       in the exchange for a new handset keeping the
                                                                                           such as “Right Planning” and “Vivo Smart”
                       number
     Program of
       Points




                       Points are added and can be used when handset is




                                                                              Migration
                                                                              Pre-Post
                       exchanged. Balance of points is sent by SMS in a                    Using base segmentation, to inform to prepaid
                       monthly basis.                                                      clients the advantages of being a Post-Paid.
        Overlay CDMA




                       Incentive to change TDMA handsets for CDMA
                       based on the program of points.




                                                                              Upgrade of
                                                                              Plans and
                                                                               Packages
                                                                                            Maxime value-for-money to client and increase
                                                                                            customer satisfaction
      Globalmoto
      Direct mail




                       Enables value clients to acquire the Globalmoto
                       handset at differentiated prices.



8
Net Revenue
    R$ million


                    Service Revenue                                                       Handset Revenue
                 - 7.5%             - 3.4%



    2,360
                          2,184               2,262                                  -20.2%              +31.4%

    1,165
                          1,159                1,189




    1,059                  868                  930
                                                                           519                  414               315
     136                   157                  143

    2Q05                  2Q06                 1Q06                        2Q05                2Q06               1Q06
Other Services      Network Usage     Monthly Subscription                                    Handsets



                                      Right Planning;
                                    Campaigns to encourage the intra network traffic;
                                    Data transmission ;
                                    Internet access cards, PDA’s and SMS.
                                      Increase in the outgoing revenues;
                                      Drop in the inbound fixed-to-mobile traffic.

9
Data Revenue Evolution

        Data Net Revenue                            Data Net Rev./Service Net Rev.



                                                                                             7.7%
 2Q06

                                                                              7.0%
                                                           6.1%
 1Q06                                        +14%



 2Q05
                                                           2Q05               1Q06           2Q06


                       2Q05                                         2Q06
                                                                     35%
                        35%


                                                                  17%         18%
                 14%
                          21%




                                                                        65%
                  65%


                                                              WAP   SMS       ZAP + others
10         WAP    SMS         ZAP + others
ARPU Blended Evolution
                    2Q05 vs. 2Q06          2Q06 vs. 1Q06

                      -15.7%                  -5.1%

            28.6
                                    24.1
                                                           25.4




            12.7
                                                           10.4
                                    9.7


     15,5                                                         17,3




            15.9                                           15.0
                    Inbound         14.4

                    Outgoing




            2Q05                    2Q06                   1Q06




11
ARPU Post-Paid Evolution
              2Q05 vs. 2Q06          2Q06 vs. 1Q06

                 - 9.1%                - 5.1%



     78.0
                                                     74.7
                              70.9

     25.3                                            21.6
                              20.8




     52.7                     50.1                   53.2


              Inbound

              Outgoing




     2Q05                     2Q06                   1Q06




12
ARPU Prepaid Evolution
             2Q05 vs. 2Q06          2Q06 vs. 1Q06
                -17.4%                 -0.8%



     15.5


                             12.8                   12.9



     9.2

                             6.8                    7.4




     6.3     Inbound
                             6.0                    5.6
             Outgoing




     2Q05                    2Q06                   1Q06




13
MOU Blended Evolution
            2Q05 vs. 2Q06          2Q06 vs. 1Q06

               -16.5%                 -2.9%



     79

                            66
                                                   68



     43

                            35                     37




     36     Inbound
                            31                     31

            Outgoing




     2Q05                   2Q06                   1Q06




14
MOU Post-paid Evolution
             2Q05 vs. 2Q06          2Q06 vs. 1Q06

                 -4.3%                +0.5%



     209
                             200                    199



     82
                              73                     76




     127                     127                    123
             Inbound

             Outgoing




     2Q05                    2Q06                   1Q06




15
MOU Prepaid Evolution
                   2Q05 vs. 2Q06          2Q06 vs. 1Q06

                      - 26.1%                -2.9%


            46




                                   34                     35




            32



     15,5                          25                     26     17,3




                   Inbound
            14
                   Outgoing         9                      9



            2Q05                   2Q06                   1Q06



16
SAC*
                    Strategy focused on Acquisition of Value Clients


                               -25.1%               2.4%




                     171

                                          128
                                                                125




                    2Q05                  2Q06                 1Q06




     *SAC Blended


17
Operating Costs*
                                           Growth with Competitive Activity
     R$ million



                                                    382
                           Cost of
                                                      434
                    services rendered
                                                     418

                                              152
                            Personnel         156
                                              155

                                                                        830          2Q05
                              Cost of
                            handsets
                                                      433                            1Q06
                                                            547                      2Q06
                                                                        809          PDD
                              Selling
                                                                  711
                            expenses
                                                                              1002


                          General &          127
                       administrative        129
                         expenses            146




          *Depreciation is not included.

18
PDD* Evolution
     R$ million
                                                             338.7




                                                                                          Others
                                                                          161.5
                                              161.0                                       Insolvency Clients

                                136.6                                                     PDD extraordinary in the 2Q06.




                                 2Q05         1Q06            2Q06

                                                 Structure and Process Initiatives :

                    Authentication of the Analog network and TDMA third party network already concluded;
                    Interception of calls posted by Vivo clients in roaming, is fully implemented (“screening” of clients);
                    “Credit Scoring” (already implemented);
                    Strong billing actions;
                    “Management of Consumption”.


         *PDD = Provision for Bad Debt
19
EBITDA and EBITDA Margin
     R$ Million




                       EBITDA                                           EBIT


                      27.8%


20.8%
                                                 18.0%

                                             11.8%

                      717.1




      599,3

                                                                          125.5
                                                         467.8   62.5
                                              306.3

     2Q05             1Q06                   2Q06

      EBITDA             EBITDA Normalized                                        - 299.9
      EBITDA Margin      EBITDA Normalized
                                                                 2Q05    1Q06      2Q06




20
Gross Debt, Net Debt and Gearing
                                                 Covered Short Term Debt


                       Gross Debt (R$ million)                                    Net Debt (R$ million)

                                                                                  4,464.4
                   5,482.6
                                             4,686.4                                               4,333.9

                    60%                       60%



                    40%                       40%

                                                                                   1Q06              2Q06
                   1Q06                      2Q06

                    Short Term       Long Term
                                                                 Gearing
                                     8,416
                                                         7,985




                             4,464               4,334


                                                                           0.53     0.54

     Net Debt                                                              1Q06     2Q06
     Shareholder's Equity



             R$ million          1Q06                  2Q06
21
Net Financial Result
                     Reduction in Financial Expenses

     R$ million




                  (246.7)

                                     (213.6)
                                                         (186.3)




                            -13.3%             + 14.7%




                  2Q05               2Q06                1Q06




22
Capex
      R$ million
                          419.0
                                                                                               954.2
                               116.2                             335.7
      Total Capex                                                                               200.1
                                                281.3
                               53.7                              108.6
                                                                                                120.3                      617.0
                                                 103.3
                                                                  87.6                                                      211.9

                               249.1              85.9
                                                                                                633.8                       173.5

                                                                 139.5
                                                  92.1                                                                      231.6


                               2Q05              1Q06            2Q06                      Accumulated 2005          Accumulated 2006

                                      Network   Technology   Others                             Network       Technology   Others



% Capex/Net Rev.         14%                                          13%                       18%

                                                11%
                                                                                                                             12%




                        2Q05                    1Q06                  2Q06               Accumulated 2005            Accumulated 2006




                                           Network Quality/Capacity;
     Main Investments                      Centralized systems and platforms;
                                           Corporate segment: handsets and technology.



23
Anatel Standards
                                  Reduction in Indicators of Non-Compliance


                          15.0%
                                    14.0%


                                             12.1%



                                                       9.3%




                                                                3.8%     4.3%
                                                                                  3.6%
                                                                                          3.3%
                                                                                                       Best
                                                                                                   Performance



                         Mar-05     Jun-05   Sep-05   Dec-05   Mar-06   Apr-06   May-06   Jun-06




     Source: ANATEL (June/2006)
24
VIVO Social Responsibility


           Vivo has continued with its internal voluntary program with several
               actions of support to visually disabled person:
               Opening of Vivo Voluntary Space, located at the company’s
               building in Rio de Janeiro, for recording of spoken books.
               Three courses were provided for training Vivo volunteers –
               audiodescription, revisers and readers.
ACTIONS        Production of approximately 11,000 pages of Braile books, only
               in June, which work was carried out by approximately 600
               volunteers of the company.




25
GSM Overlay


Project                                  Frequency                          Capex
Construction of a GSM/EDGE               We will use the frequency of       • Capex to the overlay of GSM will
network capable of upgrade to W-         850MHz and CDMA with EV-DO.        be approximately R$ 1,080MM;
CDMA to be added to the network,                                            • Capex already included in the
which will continue in full operation.                                      Company’s plan with no impact by
                                                                            the balance between investments in
                                                                            CDMA and GSM;



Reasons                                  Advantages                         Competitive Differentials
• Future coverage also in GSM;           • Handset prices;                  • Higher offer of handsets and
• Digital roaming facilitated by         • Short term pay-back;             services to the market;
present contracts;                       • Improvement in the competitive
• Lower GSM’s handset cost;              positioning;                       • Only Brazilian operator to offer
• Gain of scale;                         • Experience from TEM and PT in    both technologies CDMA and GSM;
• Evolution to UMTS;                     other markets.                     • Its offers services that fits all
• High use of the existing                                                  market segments.
infrastructure;
• Reduction in the price of GSM
equipments;
• Recurrent Economy in Capex.




26
Final Remarks
                          •   Sustainable effort to detect and control;
                          •   Authentication of prepaid and post-paid customer base;
Fraud and Cloning
                          •   System’s Prevention;
                          •   Reduction of PDD.

                          • Unified IT and SI platforms;
                          • 75% of clients already integrated;
Systems                   • Simplified control;
                          • Increased Reliability and Control.



                          •   Structure Simplification (reduction of 14 operator to 1);
Corporate Restructuring   •   Synergies;
                          •   Cost control;
                          •   Transparency.



                          • Search for Nationwide coverage;
                          • 100% Digital;
Coverage                  •1xRTT in 1,825 municipalities.



                          • 3G’s Competitively;
                          • Easier Roaming;
GSM
                          • Lower handsets’ costs.




27
Safe Harbor Clause
                    Forward Looking Statements

     • This presentation contains statements that constitute forward looking statements in its
     general meaning and within the meaning of the Private Securities Litigation Reform Act
     of 1995. These statements appear in a number of places in this document and include
     statements regarding the intent, belief or current expectations of the customer base,
     estimates regarding future growth in the different business lines, market share, financial
     results and other aspects of the activity and situation relating to the Company. The
     forward looking statements in this document can be identified, in some instances, by
     the use of words such as "expects", "anticipates", "intends", "believes", and similar
     language or the negative thereof or by forward-looking nature of discussions of
     strategy, plans or intentions. Such forward-looking statements are not guarantees of
     future performance and involve risks and uncertainties and actual results may differ
     materially from those in the forward looking statements as a result of various factors.
     • Analysts and investors are cautioned not to place undue reliance on those forward
     looking statements which speak only as of the date of this presentation.




28

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VIVO - Apresentation of 2nd Quarter 2006 Results

  • 1. Vivo Participações S.A. 2Q06 Results July 21, 2006 1
  • 2. Executive Summary Challenges • Stabilize Market Share • Promote Revenue Growth Operational Highlight Increase in the post-paid outgoing revenue of 15.3% in SP and 21.2% in RJ/ES Increase in the post-paid outgoing ARPU of 4% in SP and 9% in RJ/ES Decrease in the inbound traffic with migration F-M to M-M/ Decrease in interconnection revenue Inactive clients write-off with effects in churn but without effects in revenues 2
  • 3. Introduction Strong Commercial Activity Competitive market Mother's Day/ Valentine's Day Commercial Campaigns Client Base Write-off of inactive clients Impact in Churn No effect on revenue Revenues Outgoing revenues grew in relation to 2Q05 Pressure on prices with strong competition Provision for Bad Debt(PDD) Impact of R$ 161.5 MM QoQ Normalized PDD of R$177.2 MM or 4.7% of gross revenue EBITDA Reduction due to non higher provisions Normalized value: R$467.8 MM and 18.0% margin Net Debt Manageable volume and reduction of financial costs 3
  • 4. Introduction Advances Quality : 98% of Anatel’s goals achieved Network completely authenticated 78% of client base centralized in a single billing system 57% of client base centralized on prepaid platforms 72% of client base centralized at the front office Short Term Combat Fraud and Cloning Consolidation/ Rationalization of IT/IS National Coverage Dedicated attention to Corporate Segment Corporate Restructuring Medium Term Launching of GSM’s network (overlay) Competition and evolution in 3G Maintenance of Leadership in 850MHz and better network Costs Reduction No impact of CapEx 4
  • 5. Client Base + 0.3% - 5.4% 28,446 28,525 30,138 30,348 total without write-off of clients - 8.6% 5.761 -4.4% 5.511 5.268 • Retention and loyalty programs; • Focus on the value clients; +1.4% - 4.6% 24.377 22.935 23.257 • More than 78% of the clients base integrated to the unified IT/IS platforms. 2Q05 2Q06 1Q06 Prepaid Post-paid 5
  • 6. Leadership in Distribution & Coverage Only Operator in 3G Channels of distribution Coverage 8,364 6,953 2,256 327 6,116 104 1,759 91 1,660 3,231 2,795 2,118 4,806 4,054 3,907 Vivo C1 C2 Vivo C1 C2 Retail Third Party Own Stores Municipalities Covered 6
  • 7. 2Q06 Main Marketing Actions Program based on Points Mother’s Day Soccer World Cup 2006 Change handsets using the Buy a handset and get program based on points. the second for free. Talk more Vivo Prepaid Recharge in Double When buying or changing handset, the client speaks for how long he/she wants for only R$0.30/min in local calls or long distance calls from Vivo to Vivo Vivo offers the recharge value Client speaks for free with any Vivo in bonus for local calls from or fixed phone after the 3rd minute Vivo to Vivo to speak in double. 7
  • 8. Loyalty and Retention Focus Value Clients LOYALTY RETENTION Changes for Segmented Segmented Incentive to retain Prepaid client through discounts Prepaid Offer Retention of clients through segmented offers in the exchange for a new handset keeping the such as “Right Planning” and “Vivo Smart” number Program of Points Points are added and can be used when handset is Migration Pre-Post exchanged. Balance of points is sent by SMS in a Using base segmentation, to inform to prepaid monthly basis. clients the advantages of being a Post-Paid. Overlay CDMA Incentive to change TDMA handsets for CDMA based on the program of points. Upgrade of Plans and Packages Maxime value-for-money to client and increase customer satisfaction Globalmoto Direct mail Enables value clients to acquire the Globalmoto handset at differentiated prices. 8
  • 9. Net Revenue R$ million Service Revenue Handset Revenue - 7.5% - 3.4% 2,360 2,184 2,262 -20.2% +31.4% 1,165 1,159 1,189 1,059 868 930 519 414 315 136 157 143 2Q05 2Q06 1Q06 2Q05 2Q06 1Q06 Other Services Network Usage Monthly Subscription Handsets Right Planning; Campaigns to encourage the intra network traffic; Data transmission ; Internet access cards, PDA’s and SMS. Increase in the outgoing revenues; Drop in the inbound fixed-to-mobile traffic. 9
  • 10. Data Revenue Evolution Data Net Revenue Data Net Rev./Service Net Rev. 7.7% 2Q06 7.0% 6.1% 1Q06 +14% 2Q05 2Q05 1Q06 2Q06 2Q05 2Q06 35% 35% 17% 18% 14% 21% 65% 65% WAP SMS ZAP + others 10 WAP SMS ZAP + others
  • 11. ARPU Blended Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 -15.7% -5.1% 28.6 24.1 25.4 12.7 10.4 9.7 15,5 17,3 15.9 15.0 Inbound 14.4 Outgoing 2Q05 2Q06 1Q06 11
  • 12. ARPU Post-Paid Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 - 9.1% - 5.1% 78.0 74.7 70.9 25.3 21.6 20.8 52.7 50.1 53.2 Inbound Outgoing 2Q05 2Q06 1Q06 12
  • 13. ARPU Prepaid Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 -17.4% -0.8% 15.5 12.8 12.9 9.2 6.8 7.4 6.3 Inbound 6.0 5.6 Outgoing 2Q05 2Q06 1Q06 13
  • 14. MOU Blended Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 -16.5% -2.9% 79 66 68 43 35 37 36 Inbound 31 31 Outgoing 2Q05 2Q06 1Q06 14
  • 15. MOU Post-paid Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 -4.3% +0.5% 209 200 199 82 73 76 127 127 123 Inbound Outgoing 2Q05 2Q06 1Q06 15
  • 16. MOU Prepaid Evolution 2Q05 vs. 2Q06 2Q06 vs. 1Q06 - 26.1% -2.9% 46 34 35 32 15,5 25 26 17,3 Inbound 14 Outgoing 9 9 2Q05 2Q06 1Q06 16
  • 17. SAC* Strategy focused on Acquisition of Value Clients -25.1% 2.4% 171 128 125 2Q05 2Q06 1Q06 *SAC Blended 17
  • 18. Operating Costs* Growth with Competitive Activity R$ million 382 Cost of 434 services rendered 418 152 Personnel 156 155 830 2Q05 Cost of handsets 433 1Q06 547 2Q06 809 PDD Selling 711 expenses 1002 General & 127 administrative 129 expenses 146 *Depreciation is not included. 18
  • 19. PDD* Evolution R$ million 338.7 Others 161.5 161.0 Insolvency Clients 136.6 PDD extraordinary in the 2Q06. 2Q05 1Q06 2Q06 Structure and Process Initiatives : Authentication of the Analog network and TDMA third party network already concluded; Interception of calls posted by Vivo clients in roaming, is fully implemented (“screening” of clients); “Credit Scoring” (already implemented); Strong billing actions; “Management of Consumption”. *PDD = Provision for Bad Debt 19
  • 20. EBITDA and EBITDA Margin R$ Million EBITDA EBIT 27.8% 20.8% 18.0% 11.8% 717.1 599,3 125.5 467.8 62.5 306.3 2Q05 1Q06 2Q06 EBITDA EBITDA Normalized - 299.9 EBITDA Margin EBITDA Normalized 2Q05 1Q06 2Q06 20
  • 21. Gross Debt, Net Debt and Gearing Covered Short Term Debt Gross Debt (R$ million) Net Debt (R$ million) 4,464.4 5,482.6 4,686.4 4,333.9 60% 60% 40% 40% 1Q06 2Q06 1Q06 2Q06 Short Term Long Term Gearing 8,416 7,985 4,464 4,334 0.53 0.54 Net Debt 1Q06 2Q06 Shareholder's Equity R$ million 1Q06 2Q06 21
  • 22. Net Financial Result Reduction in Financial Expenses R$ million (246.7) (213.6) (186.3) -13.3% + 14.7% 2Q05 2Q06 1Q06 22
  • 23. Capex R$ million 419.0 954.2 116.2 335.7 Total Capex 200.1 281.3 53.7 108.6 120.3 617.0 103.3 87.6 211.9 249.1 85.9 633.8 173.5 139.5 92.1 231.6 2Q05 1Q06 2Q06 Accumulated 2005 Accumulated 2006 Network Technology Others Network Technology Others % Capex/Net Rev. 14% 13% 18% 11% 12% 2Q05 1Q06 2Q06 Accumulated 2005 Accumulated 2006 Network Quality/Capacity; Main Investments Centralized systems and platforms; Corporate segment: handsets and technology. 23
  • 24. Anatel Standards Reduction in Indicators of Non-Compliance 15.0% 14.0% 12.1% 9.3% 3.8% 4.3% 3.6% 3.3% Best Performance Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Apr-06 May-06 Jun-06 Source: ANATEL (June/2006) 24
  • 25. VIVO Social Responsibility Vivo has continued with its internal voluntary program with several actions of support to visually disabled person: Opening of Vivo Voluntary Space, located at the company’s building in Rio de Janeiro, for recording of spoken books. Three courses were provided for training Vivo volunteers – audiodescription, revisers and readers. ACTIONS Production of approximately 11,000 pages of Braile books, only in June, which work was carried out by approximately 600 volunteers of the company. 25
  • 26. GSM Overlay Project Frequency Capex Construction of a GSM/EDGE We will use the frequency of • Capex to the overlay of GSM will network capable of upgrade to W- 850MHz and CDMA with EV-DO. be approximately R$ 1,080MM; CDMA to be added to the network, • Capex already included in the which will continue in full operation. Company’s plan with no impact by the balance between investments in CDMA and GSM; Reasons Advantages Competitive Differentials • Future coverage also in GSM; • Handset prices; • Higher offer of handsets and • Digital roaming facilitated by • Short term pay-back; services to the market; present contracts; • Improvement in the competitive • Lower GSM’s handset cost; positioning; • Only Brazilian operator to offer • Gain of scale; • Experience from TEM and PT in both technologies CDMA and GSM; • Evolution to UMTS; other markets. • Its offers services that fits all • High use of the existing market segments. infrastructure; • Reduction in the price of GSM equipments; • Recurrent Economy in Capex. 26
  • 27. Final Remarks • Sustainable effort to detect and control; • Authentication of prepaid and post-paid customer base; Fraud and Cloning • System’s Prevention; • Reduction of PDD. • Unified IT and SI platforms; • 75% of clients already integrated; Systems • Simplified control; • Increased Reliability and Control. • Structure Simplification (reduction of 14 operator to 1); Corporate Restructuring • Synergies; • Cost control; • Transparency. • Search for Nationwide coverage; • 100% Digital; Coverage •1xRTT in 1,825 municipalities. • 3G’s Competitively; • Easier Roaming; GSM • Lower handsets’ costs. 27
  • 28. Safe Harbor Clause Forward Looking Statements • This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines, market share, financial results and other aspects of the activity and situation relating to the Company. The forward looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ materially from those in the forward looking statements as a result of various factors. • Analysts and investors are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this presentation. 28