BRST3

Brisanet Serviços de Telecomunicações S.A. is a regional telecommunications operator founded in 1998 by José Roberto Nogueira in the city of Pereiro, in the semi-arid region of the state of Ceará. The company was created with the goal of providing radio internet access at affordable prices in the countryside of the Northeast, in a context of low supply of connectivity services outside major urban centers. Over the first few years, it expanded its operations to cities in Ceará, such as Jaguaribe, Icó and Limoeiro do Norte, and to municipalities in Rio Grande do Norte, such as São Miguel and Pau dos Ferros. In 2010, it had established itself as one of the largest radio internet operators in the country, serving tens of thousands of customers in around 150 towns in the Northeast hinterland, and began to shift its strategy toward large-scale adoption of fiber-optic technology.

A key milestone in this technological transition came in 2011, when Brisanet began rolling out a fiber-optic network in Pau dos Ferros, in Rio Grande do Norte, making this municipality the first city in Brazil to be fully served with this technology by the company. The migration to fiber intensified in the following years, with the introduction of new telecommunications services such as fixed-line telephony in Juazeiro do Norte starting in 2014, pay TV in 2015 and mobile telephony in 2018. At the same time, the corporate structure became more sophisticated, with the adoption of integrated management systems, external auditing of the financial statements and an increase in the workforce, in step with the expansion of the subscriber base. On November 25, 2020, the limited-liability company was converted into a corporation, a process that preceded the IPO of the controlling group and reinforced the company’s preparation to access the capital markets.

Brisanet’s shares began trading on B3 under the ticker BRST3 through Brisanet Participações S.A., which became the controlling holding company until the approval, in 2024, of the merger of its parent company into Brisanet Serviços de Telecomunicações S.A. itself. This corporate reorganization was intended to unify the shareholder base in the operating company, simplifying the capital structure. In 2021, the group carried out its first infrastructure debenture issuance and conducted its initial public offering of shares, in addition to acquiring the right to use three radio-frequency bands for 5G operation in an auction held by the National Telecommunications Agency (ANATEL). Subsequent debenture issuances and infrastructure build-outs showed the growing use of debt and equity instruments to finance the expansion of the network and service portfolio.

Brisanet’s business model is concentrated in a single operating segment of telecommunications, with a strong focus on fixed broadband internet services via fiber optics. The company provides connectivity for homes and businesses through FTTH (fiber-to-the-home) networks and GPON technology, with speeds of up to 1 Gbps. Building on this base, it complements its offering with pay TV, fixed and mobile telephony services, equipment rental, value-added services and proprietary streaming solutions such as BrisaMusic and BrisaPlay, as well as the Conecta+ platform. Almost 90% of net operating revenue comes from fixed broadband internet services, underscoring the importance of fiber connectivity as the main revenue driver. Verticalization of operations, from network planning to installation and support, is supported by proprietary technology and an in-house “software factory” that integrates sales, customer service, technical supervision and field-team management systems.

In terms of service portfolio, Brisanet is authorized by ANATEL to operate in several telecommunications modalities: Multimedia Communication Service (SCM), Switched Fixed Telephone Service (STFC) in local, national long distance and international long distance modalities, Conditional Access Service (SeAC) for pay TV, Personal Mobile Service (SMP) and Private Limited Service (SLP). Fixed broadband services form the economic core of the company, while mobile telephony, pay TV, fixed voice and complementary digital services function as offer extensions and ways to increase average revenue per user. The company also sells SIM cards and enables MVNO operations within its ecosystem, in addition to offering self-service features and additional functionalities for TV and telephony. Even with this diversified portfolio, management considers that operations are organized under a single business segment, centered on the integrated provision of telecom services.

Brisanet’s operating area is predominantly regional, focused on Brazil’s nine Northeastern states. The company has built a robust infrastructure consisting of more than 46,000 km of fiber-optic backbone, more than 115,000 km of FTTH cables and roughly 280 proprietary data centers, supporting the distribution of fixed broadband and mobile services in hundreds of municipalities. In March 2025, the company reported more than 1.49 million customers, serving more than 155 cities with fixed broadband and more than 40 cities with mobile service, with expanding 4G and 5G coverage, as well as a commercial presence in all Northeastern state capitals and several larger cities. In the mobile segment, Brisanet acquired radio-frequency lots in the 2.3 GHz, 3.5 GHz and other bands, mainly for operations in the Northeast and Center-West regions, reaching, in 2025, more than 260 cities with mobile coverage and a potential population of more than 12 million inhabitants.

The Agility Telecom brand is an important pillar of Brisanet’s indirect expansion. Launched in 2019, it operates under a franchise model, in which franchisees act as small local ISPs using Brisanet Group’s network infrastructure and support, expanding reach in smaller towns and remote areas of the Northeast. This structure allowed Agility’s subscriber base to grow rapidly in its early years, although the model was revisited from 2023 onward, with the de-authorization of some franchisees and studies for the future conversion of these partners into virtual mobile operators (MVNOs). In March 2025, Agility Telecom had 63 franchisees serving more than 140,000 customers in five Northeastern states, reinforcing the strategy of complementing Brisanet’s direct operations with a network of regional partners.

From a commercial standpoint, the company operates through multiple sales channels, covering the B2C, B2B and B2G segments. In B2C, it makes intensive use of digital media, telemarketing, door-to-door sales, physical stores and its own online channel, as well as referral campaigns and the involvement of technicians and partners remunerated by commission. In B2B, it combines inbound and outbound digital fronts, with teams dedicated to specific niches and regional consultants focused on companies, as well as authorized agents specialized in telecommunications. In B2G, it uses tools to map opportunities with public entities and maintains a team dedicated to prospecting contracts with government bodies. This multichannel approach is supported by a proprietary app with a large base of active users, which integrates customer service, self-management and additional services, as well as internal tools that enable the company to monitor networks and operations in real time, reducing the time to activate new customers and optimizing costs.

Brisanet operates in a heavily regulated sector, under the supervision of ANATEL and in compliance with the General Telecommunications Law and specific regulations for each service provided. Authorizations for SCM, STFC, SMP, SeAC and SLP, as well as the various radio-frequency usage concessions, are subject to regulatory terms and conditions that involve coverage obligations, payment of fees, sector charges and contributions such as Condecine, administered by the Brazilian Film Agency (Ancine) in the case of pay TV. Service concessions under the private regime have an indefinite term, while radio-frequency authorizations have fixed terms, generally ranging from 15 to 20 years, with staggered expiration dates into the 2040s. The company is also subject to penalties if it fails to comply with regulatory obligations, which makes compliance management and relations with regulatory bodies a central element of its operations. In market terms, Brisanet positions itself as one of the main independent fiber-optic broadband providers in Brazil, the market-share leader in the Northeast region, and its more recent trajectory has been marked by the expansion of its customer base, intensified investment in 5G and the consolidation of its role as a regional connectivity platform, with BRST3 shares listed on B3 as a means of accessing capital to sustain this strategy.