Apresentao do PowerPoint

1
Brasil Telecom Corporate Overview
November/2006
2
Summary
1
Company outlook Convergence What is converging
with what Convergence and Brasil Telecom Brasil
Telecoms steps towards convergence Final Comments
2
3
4
5
6
3
1
Company outlook - Our Footprint

• Largest Telecommunications Company in Region II

• Gross Revenue US 6,4 billions
• 9.4 million lines in service (LIS).
• 2.8 million mobile accesses (launched out/2004).
• 1.2 million broadband subscribers.
• 3.5 million active Internet clients.
• Metropolitan access networks in São Paulo, Rio
  de Janeiro and Belo Horizonte.
• Offers integrated services via 2 ring-system of
  fiber-optic subsea cables with 22,000 km
  connecting Brazil, United States, Venezuela and
  Bermudas.

1 All information is referent to June 2006
4
1
Company outlook - Integrated Portfolio
Brasil Telecom
Finance, HR, Marketing, Operations
Technology (Network/IT)
5
1
Company outlook - Mobile Telephony

• 3,051 thousand mobile accesses in 3Q06
• 11.4 of market share and 31 of pos-paid
  accesses.

3,051
2,772
2,460
2,213
1,676
Pos-paid
Pre-paid
Pos-paid
6
1
Company outlook - Broadband

• Data Communication Services accounts for 16 of
  the total revenues.
• ADSL revenue accounts for 43.9 of total data
  communications revenues.
• 14.5 penetration of LIS.

CAGR (01-05) 133.7
40.4 x 3Q05
CAGR (01-05) 168.8
(R million)
50.2 x 3Q05
7
1
Company outlook - EBITDA (R million)

• Reduction of Operating costs and expenses.
• Affected by increase in revenue in the data and
  mobile segments.

EBITDA Margin
8
1
Company outlook - Strategic Key Messages

• Defend fixed-line segment gt70 of revenue
• Expand mobile operations adequate scale vs.
  profitability
• Exploit growth opportunities in Data and
  Internet increase in revenues and profits

4. Full convergence Opex reduction, Capex
reduction, churn reduction and ARPU increase
5. Operational Efficiency
6. Corporate Governance culture transparency,
ethics and shareholders value creation.
9
2
Convergence

• Can be hard to increase the added value beyond
  initial benefit

The Bundles
Source Ovum
10
2
Convergence

• Reduce costs, increases coverage and therefore
  usage

Network
The Bundles
Source Ovum
11
2
Convergence

• New applications delivered in new ways to new
  devices

Services
Network
The Bundles
Source Ovum
12
2
Convergence

• Simplifies service delivery for both Service
  Provider and Customer

Devices
Services
Network
The Bundles
Source Ovum
13
2
Convergence
The maximum level of convergence perceived by the
customer occurs when an unique access device can
be used for all services and applications
available (fixed, mobile, internet, TV, etc).
Devices
Services
Network
The Bundles
Source Ovum
14
3
What is converging with what
Convergence is complex and is happening in the
following levels

• Network and Information Technology (IT)
• Industry sector
• Services

15
What is converging with whatNetwork technology
IT
3
Network convergence happens when operators move
to an All-IP-Next Generation Network (NGN) to
support all telecom traffic efficiently
SDH
Source Ovum
16
What is converging with whatNetwork technology
IT
3
As operators move to a multipurpose NGNs, the IT
systems that support each service and overlay
network are integrated into one OSS/BSS system
SDH
Source Ovum
17
What is converging with whatIndustry sector
3
The former distinct worlds of telecommunications
and IT are already merging. We also see that the
distinctions between fixed mobile operators,
carriers service providers and media telecom
are blurring

• Fixed operators some are already offering
  fixed-mobile convergent services, entering the
  markets previously served by mobile operators
• Mobile operators announced plans to offer
  content / TV services. Some companies are now
  offering football video clips to mobile handsets
• Media providers have purchased a number of
  companies designed to create new distribution
  channels to theirs content. Some ISP plan to
  offer VoIP and TV services
• IT and software companies argue that will
  inevitably be part of the convergent solutions
  market, particularly providing solutions for the
  home and office because of the ubiquity of their
  product (e.g.. IPTV middleware)
• Content owners search an opportunity to identify
  new channels to market their existing content.
  These companies see IPTV as a new channel to
  increase the films life time by adding
  on-demand facility.

18
What is converging with whatIndustry sector
3
Industry sectors are converging with adjacent
sectors around the edge and in the middle. Hence
the boundaries differences between each sector
in the convergent space will be difficult to
detect.

Source Ovum
19
What is converging with whatServices
3
Convergent services User perspective

• Integrated selling and customer relation services
  (One Stop Shop)
• One bill
• Reduction on the cost of services

20
What is converging with what Services on
Broadband
3
Fixed voice, data and video services are
converging, enabling bundles
21
What is converging with whatFixed Mobile
Services
3
A dual mode mobile handset that acts as a normal
GSM phone outside the home, inside the home,
routes calls through a device called access point
connected to conventional fixed line
22
4
Convergence and Brasil Telecom
The new scenery demands a infra-structure with
specific characteristics

• Agnostic to devices
• Flexible
• Adaptable
• Integrated control
• Integrated management of the client
• Agile and flexible OSS/BSS

23
4
Convergence and Brasil Telecom

• The possibility of service convergence (SoIP)
  and network convergence stimulates the adoption
  of IMS architecture.
• The future is the implementation of a totally
  integrated network, all-IP, based on TISPAN
  architecture (Telecoms Internet converged
  Services Protocols for Advanced Networks).

24
4
Convergence and Brasil Telecom - Network Evolution
IMS/ TISPAN NGN
25
4
Convergence Architecture Today
BRAS/AAA
MSC
GSM
GPRS
WiFi
xDSL
POTS
CMTS
26
4
Convergence - NGN
27
4
Convergence - IMS

• Mobilility
• Convergence
• Flexibility
• Confort
• Otimization
• New Services
• Etc.

Business Applications
VAS e IN
Presence
Messenger and Media Stream
Push-To-Talk
Games
Etc.
PGF
SBC
MGCF
MGW/SGW
LOCAL
Access Point Bluetooth CTP
Seamless Mobility
GSM
GPRS
WiFi
xDSL
POTS
CMTS
28
5
Brasil Telecoms steps towards convergence

• Starting a process aiming to change the companys
  skill
• moving from connectivity provider onto
  solutions provider
• integrating the Information and Network
  Technology people
• Developing technical and market capabilities
  through a program focused initially on network
  and market teams.
• Intensifying the companys participation in
  international forums such as ETSI and
  Fixed-Mobile Convergence Alliance (FMCA), which
  Brasil Telecom is a member since 2003.
• Consolidating the operation of the three Brasil
  Telecoms ISP, with more than 3,5 million
  customers.
• Merging the fixed and mobile operations.
• Developed and implement convergent networks
  (NGN), services and systems associated.

29
6
Final Comments

• The network evolution shouldnt occur because of
  the need of keeping up-to-date with technology.
• The evolution drive is the need of offering news
  services or the improvement of operational
  efficiency.
• The speed of the implementation will be defined
  mainly by the market.
• Dont implement a new technology just to offer
  the same old services.
• Regulatory and legal issues may accelerate or
  restrain evolution.

30
Thank You!

Dante Nardelli Junior danten_at_brasiltelecom.com.br
Tel [phone]