Growth in the B2B segment through geographic expansion, network densification and new products. Our B2B growth strategy, which has a great appeal due to the low penetration rates of services of data for connectivity in Brazil, focuses on the expansion of our networks to attractive regions with moderate competition, identified through georeferencing the number of prospective corporate customers, as well as the densification of our networks already installed, making it possible for us to gain in scale and efficiency in the services provided to corporate customers. Due to our role as an authorizing officer in the expansion areas, we have chosen the most appealing regions to offer our products and services, carrying out a better allocation and optimizing the efficiency of our investments.

Our B2B expansion strategy is being successfully implemented, and we will continue to invest in building backbones and metropolitan networks of high strategic value to access new customers. In addition, after launching the undersea cable, we hope to access new markets and also improve the quality and competitiveness of our products and services.

Strengthening of B2C, in our region of origin, through the integrated offer of fixed and mobile Ultra Broadband services. We are leaders in market share in services provided to the B2C segment, and we have the highest Service Performance Index (IDA) among our competitors, according to the ranking of complaints from providers disclosed by ANATEL in 2017. Our strategy is to maximize our penetration, optimize the use of our network and maintain the barriers to our competitors by strengthening the B2C segment in our region of origin. In order to do this, we made investments to upgrade the core of the fixed and mobile broadband network, enabling a convergent offer of fixed (with speeds of 10Mbps to 200Mbps) and mobile UBL services (available in 3G and 4G technologies in the 700Mhz, 1800Mhz and 2100Mhz frequencies and supported by the capillarity of our fixed network), voice and pay-tv.

Efficiency in carrying out our business focused on the best return on invested capital. We use effective processes leveraged in digital technologies in order to improve our efficiency to carry out our business and our relationship with our customers. Our goal is to be the pioneers in the digital transformation of the relationship with customers and become a reference in technology management, providing a better experience to the end-user, better efficiency in the processes and a better return over the invested capital. The main ongoing measures include: (a) commercial efficiency; (b) process automation; (c) network efficiency; and (d) digital multichannels.

Exploring the undersea cable to start operating in new B2B markets and reduce costs. We intend to expand our fiber optic network to the Northeast through the launching of the undersea cable (with 12Tbps per fiber pair based on the current technology) connecting Santos (SP) and Fortaleza (CE) to Boca Raton (Florida, United States), which will enable us to access new B2B markets and also reduce our IP band costs, making us more competitive and improving the quality of our products and services.

 

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