September, 2008

1

September, 2008.

Market

Institutional Presentation

Agenda

World Mobile Market

Brazilian Mobile Market

Market


Agenda

World Mobile Market


4


World Users Evolution - billion

Source:Teleco – June 08

Handsets

3.73.5

3.3

2.7

2.2

1.71.3

1.21.0

0.7

2000 2001 2002 2003 2004 2005 2006 2007 1Q08 2Q08


Major Markets

Brazil is the 5th

largest mobile

market in the world

reaching 141mn

handsets in

September 08

1º 2º 3º 4º 5º 6ºChina India US Russia Brazil Indonesia

601

Source: Merril Lynch - Global Wireless Matrix 3Q08

283 263 173 141 116

http://images.google.com.br/imgres?imgurl=http://www.workersforjesus.com/dfi/china.jpg&imgrefurl=http://www.workersforjesus.com/dfi/senior-por.htm&h=310&w=491&sz=8&hl=pt-BR&start=2&usg=__zrZyAxrezUGl1-wryL04gX6szfo=&tbnid=NWBFRgQjK8VewM:&tbnh=82&tbnw=130&prev=/images%3Fq%3DChina%26gbv%3D2%26hl%3Dpt-BR

http://images.google.com.br/imgres?imgurl=http://www.inforel.org/fotoNoticia/india.gif&imgrefurl=http://www.inforel.org/servlet/ListaNoticia%3Facao%3DC%26noticiaId%3D1763%26ano%3D2006&h=302&w=452&sz=4&hl=pt-BR&start=7&usg=__xoVOZRp7M_Ba4nzZJE5inJEJFS8=&tbnid=ussDWH0yL7zqHM:&tbnh=85&tbnw=127&prev=/images%3Fq%3DIndia%26gbv%3D2%26hl%3Dpt-BR

http://images.google.com.br/imgres?imgurl=http://www2.uol.com.br/JC/HTML_PORTAL/cotidiano/imagens/bandeira_EUA.png&imgrefurl=http://jc.uol.com.br/2008/03/28/not_164586.php&h=267&w=400&sz=68&hl=pt-BR&start=2&usg=__NnKFLwwN4vKB3MSqqa4EjpyLsIY=&tbnid=QIVlB4hXBeqpPM:&tbnh=83&tbnw=124&prev=/images%3Fq%3Dbandeira%2Beua%26gbv%3D2%26hl%3Dpt-BR

6Source: Global Wireless Matrix. – 2Q08.

Mobile Penetration

Most telecom/media services still have excellent growth prospects in Brazil due to the low penetration: 69% in mobile as of June 2008.


Market


Agenda

World Mobile Market


8

Panorama

• Population*: 189.6 Million

• Homes*: 56.3 Million

• Area: 8,514,215 km²

• GDP**: R$ 2,778.0 Billion (US$ 1,621.3 Billion)

• GDP per capita**: R$ 14,478 (US$ 8,449)

Source: * Estimated IBGE ** International Monetary Fund, World Economic Outlook Database, estimated 2008.


9

Launch of cell technology in the main Brazilian cities

1990 - 1993 2007

Introduction of third generation technology

2005 - 2008F

(in million of lines) + 200% in the

last 5 years

Brazil holds 5th place in the world mobile telecom ranking

1997

Opening of the Brazilian telecom market

Evolution of mobile telecom in BrazilInstitutional Presentation

10Source: Teleco and Anatel – 2Q08.

Mobile Market Evolution

+24%

118 Million


+21%

+33%

+41%

+31%

+16%

+21%

+16%

11Source: Anatel – 3Q08.

Mobile Market EvolutionInstitutional Presentation

12Source: Teleco and Anatel – 2Q08.

TechnologiesInstitutional Presentation

Customers


Agenda

Vivo’s History

Brazilian Market and Vivo

Vivo’s Customer Base

Vivo Escolha Plans

Vivo’s Operating and Financial Performance

Vivo Today

Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

Joint venture formation


Vivo was launched in April/2003: joint venture by 7 cell phone carriers, leaders in their markets, constituting the largest cell phone carrier in Brazil.

+ =

16

2003 2004 2005 2006

CBF Sponsorship

Vivo Launch

Launch of innovative products and services

Vivo ao Vivo

Vivo Play 3G

Launch ofVivo Escolha Plans

CBF / World Cup

Brand trajectory


17

2007 2008

Brand trajectory

Brand repositioning

Aggressive promotional pricing

National coverage

Launch of Digital TV


18

The brand allies quality of service and vocation for innovation.

Source: Ipsos Asi BrandGraph tracking - mar/08

Currently, Vivo is Top of Mind in the category and is strongly associated with the following attributes:

• Most reliable brand

• Greatest coverage

• Best signal quality

• Most advanced technology

• Best mobile telecom option

Recognition


19

“Most reliable brands in Brazil” (IBOPE / 2007)

“Most valuable brands” (Brand Finance / 2007)

For the 4th consecutive year Vivo is the most reliable brand in Brazil in the mobile telecom category.

Vivo is the most valuable brand in mobile telecom in Brazil with a total of R$ 2.25 billion.

RecognitionInstitutional Presentation

20

RecognitionInstitutional Presentation

Vivo holds higher

satisfaction levels

among users than

the market average.

Source: GFK Total Satisfaction Survey – 2S07

Ratings vary from 0 (extremely unsatisfied) to 10 (extremely satisfied).

Overall satisfaction

Market average Vivo

8.33

8.41

Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

22Source: Planning and Performance Department – September 2008.

Distribution

29%

12% -2%15%

29%

10%


Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

24Source: Planning and Performance Department ;

Vivo’s Customer Base - Thousands


25

Pre and Post paid plans - Millions


Source: Planning and Performance Department;

Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

27

VivoEscolha

50

VivoEscolha

90

VivoEscolha

180

VivoEscolha

350

VivoEscolha

650

VivoEscolha

900

VivoCompleto

Plans FranchiseLocal

MinutesMobile + Fixed

SMS Included + Minutes on net

Long Distance

and Roaming

Free

+ SMS and Wap SMS + MMS +Wap

Favorite Vivo

Number

Free Bonuses

R$ 52.00 50 min - 5 min + 30 min -

90 min 50

180 min 50

350 min 100

650 min 100

900 min 100

1,400 min 100

R$ 83.00

R$ 129.00

R$ 193.00

R$ 288.00

R$ 354.00

R$ 525.00

50 min

50 min

150 min

150 min

300 min

300 min

300 min

15 min + 100 min

15 min + 100 min

15 min + 100 min

30 min + 200 min

30 min + 200 min

30 min + 200 min

50 + 50 + 500 KB

100 + 100 + 500 KB

100 + 100 + 500 KB

300 + 300 + 2 MB

300 + 300 + 2 MB

300 + 300 + 2 MB

300 + 300 + 2 MB

-

1,000 min

1,000 min

1,000 min

1,000 min

1,000 min

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“Vivo Escolha” PlansInstitutional Presentation

Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

29

ARPU – R$


30

SAC and Churn


SAC

CHURN

31

Net Revenue – R$ million


CAGR 03 - 07:

7.6%

32

EBITDA – R$ million


*Including extraordinary effects of ICMS on Telemig of R$ 240 million.

33

Capex – R$ million


34

Net Debt and Cash Flow – R$ million


Customers


Agenda

Vivo’s History



Vivo Escolha Plans


Vivo Today

36

Today


Source: Anatel 3Q08 (Brazil) /Merril Lynch - Global Wireless Matrix 2Q08 (World)

In the Second Quarter 2008, the clients of Telemig Celular joined Vivo’s client base, becoming part of a company that is among the world’s 15 biggest mobile operators, with a community of 42.3 million customers.

Brazil World

1º 2º 3º 4º 5º 14º

Documents

September, 2008