Oi (Telemar) says it plans to spend between USD5 billion and USD6 billion in 2009 to expand its presence in the Brazilian telecoms market following the acquisition of Brasil Telecom (BrT). The company says that 60% of the monies will be allocated to fixed line and broadband services and the remainder to its mobile operations. Oi hopes the investment will increase its overall subscriber base by nine million users this year. In order to broaden its subscriber base, it will expand the provision of broadband, introduce convergent packages and launch a satellite TV service (DTH). Oi’s director of finance and investor relations, Alex Zornig, said the operator also aims to complete the integration of BrT and Amazonia Celular in 2009, adding that the Brasil Telecom name will disappear by the end of the year.
Oi is also placing emphasis on developing its mobile market share in of Sao Paulo, where it has been working since October 2008. Zorning says the company wants to attract about three million customers in Sao Paulo this year, in addition to the two million it has already signed up as a result of its aggressive marketing campaign for pre-paid SIMs. To achieve this goal Oi hopes to launch 3G services and broaden the geographic scope of its data networks.
The operator added a total of 8.7 million new customers in 2008 to end the year with a total of 40.4 million. Of the total customer base, 13.9 million were fixed line customers, 24.4 million mobile and two million took one of its broadband packages (including 1.965 million ADSL and 51,000 Oi cable customers). The company ended 2008 with an overall market share of 30.3%, up from 26.9% at the end of 2007. Consolidated revenues reached USD27.2 billion last year up 8.1% year-on-year, operating income of USD18.7 billion. Net profit was about USD1.2 billion, although EBITDA dropped 6.9% year-on-year to USD2.54 billion reflecting non-recurring items in the period under review. .