Sep 20, 2011

The Board of Directors of the Brazilian Development Bank (BNDES) approved R$ 3 billion in financing for Vivo S/A. The funding is for investments to expand and improve the current network, implement infrastructure required for new technologies between the years 2011 and 2013, as well as research and development.

With this, the company will increase access to telecommunications services throughout the country, extending internet connection to a greater number of people.

The main investment refers to the 3G coverage expansion plan and the increase in capacity of the 2G and 3G networks. With the expansion of 3G coverage, the goal is to make third generation mobile internet accessible to over 85% of the Brazilian population by December, 2011. The increase in capacity will improve the flow for the increasing demand for data and voice traffic, reducing network congestion.

There are also plans to expand Vivo’s own network (Backbone), which will increase reliability, and reduce dependency on the use of other operators’ networks. Backbone is the infrastructure that supports traffic between the telecommunications exchanges of a broader system, between cities.

The investment program also includes the construction of an Information Technology center in Tamboré (SP), which will be occupied by Vivo and Telesp. Start-up is scheduled for the first half of 2012.

With the support of the BNDES, Vivo will invest R$ 22 million in social programs. The projects targets investments in health and education services for families that live along the Tapajós River in the state of Pará; the development of small communities and peripheral urban areas using information and communication technologies in social inclusion projects; availability of 3G networks to fishing communities in Santa Cruz de Cabrália, in the state of Bahia; and the virtual mapping of streets in low-income communities. The company is present in more than 3,600 municipalities, representing approximately 65% of all municipalities in the country.

Since the privatization of Telebras, the BNDES’ financing to the sector has enabled telephone companies to invest R$ 198 billion in the development and improvement of the national telecommunications system.