TELB4

Telecomunicações Brasileiras S.A. – Telebras is a Brazilian federal state-owned company, organized as a mixed-capital, publicly traded corporation, with common and preferred shares listed on B3 under the tickers TELB3 and TELB4. Created by Law No. 5,792/1972 and established in November of the same year, the company’s original mandate was to centralize, standardize, and modernize the various public telecommunications service concessionaires operating in the country, acting as the holding company of the former Telebrás System. Between 1972 and 1998, it controlled state fixed-line and mobile telephony operators, as well as Embratel, playing a central role in structuring Brazil’s telecommunications infrastructure until the sector’s privatization process.

The privatization of the Telebrás System in 1998 resulted from constitutional changes and the enactment of the General Telecommunications Law, which redesigned the regulatory framework and opened the sector to private competition. The companies then controlled by Telebras were reorganized into 12 regional holding companies, with four responsible for fixed-line telephony and eight for mobile telephony, while “mirror companies” were created to stimulate a duopoly in different concession areas. After this process, Telebras went through a period of reconfiguring its role, gradually resuming operational activities linked to public telecommunications policies and the provision of network infrastructure, especially from the National Broadband Plan implemented in 2010 onward.

In its current configuration, Telebras operates predominantly as an implementing agent of public telecommunications policies, focusing on digital inclusion, high-capacity connectivity, and meeting the demands of public administration bodies. Its recent strategic direction began to follow the guidelines of the Public Telecommunications Policies defined by Decree No. 9,612/2018 and the National Information Security Policy established by Decree No. 9,637/2018. In 2024, the company approved an Institutional Strategic Plan for the 2025–2030 period, aimed at directing efforts toward implementing public telecommunications policies and ensuring the company’s economic and financial sustainability, while maintaining an emphasis on secure connectivity services for government agencies and digital inclusion projects.

Telebras’s business model is based on providing data and broadband telecommunications services, supported by infrastructure that combines a terrestrial fiber-optic network and its own geostationary satellite. The company owns a network of more than 30 thousand kilometers of fiber-optic cables crossing all Brazilian states, installed along power transmission lines, gas pipelines, and highways, part of which are granted by other state-owned companies such as Petrobras and Eletrobras. Complementing this, it operates the Geostationary Defense and Strategic Communications Satellite (SGDC) in partnership with the Brazilian Air Force, using the Ka band for civilian broadband services throughout the national territory, while the X band is dedicated to military uses. The terrestrial infrastructure associated with the SGDC includes Space Operations Centers in Brasília and Rio de Janeiro, with high-availability data centers, as well as gateways located in military areas.

The main services offered by Telebras include satellite broadband solutions, corporate IP connectivity, and private data networks. Telebras SAT is the Ka-band satellite broadband service with nationwide coverage, aimed especially at remote locations and areas without adequate terrestrial infrastructure. The company also sells IP Telebras, an internet access solution for corporate clients, regional ISPs, and public education and healthcare institutions, among others, focusing on dedicated and symmetrical connections. Its L3VPN offering, based on MPLS technology, enables the creation of virtual private networks for integrating data, voice, and video, serving government bodies and entities that require higher security and quality of service. In addition, Telebras offers point-to-point fiber (P2P) services, high-capacity connectivity for ISPs and operators, SD-WAN solutions primarily for the government segment, and Wifi Brasil, a program structured to provide public points of free internet access in a contractual partnership with the Ministry of Communications.

Telebras’s client base is concentrated in the public sector, especially ministries, autonomous agencies, and other entities of the federal and state administrations. Under Decree No. 11,299/2022, the company was designated the exclusive manager of the Private Communication Network of the Federal Public Administration, reinforcing its role in secure connectivity solutions and dedicated networks for government agencies. The company’s revenues come mainly from communication and multimedia services, leasing of satellite capacity, value-added services, rentals, and other leases. Among the clients with the highest share in recent net revenue are the Ministry of Communications and INSS, highlighting the importance of contracts with large federal agencies. In the private market, the company operates more selectively, serving regional ISPs, companies with public service programs, and carrying out capacity swaps with large operators.

From a regulatory standpoint, Telebras is subject to the telecommunications sector framework supervised by the National Telecommunications Agency (Anatel). The provision of its services depends on specific licenses, and the company holds authorizations for Multimedia Communication Service (SCM), Switched Fixed Telephone Service (STFC), and satellite operation. Compliance with technical, safety, and electromagnetic compatibility rules is ensured through the use of Anatel-certified and approved equipment, both in its terrestrial network and in its satellite infrastructure. The company also complies with environmental legislation applicable to the telecommunications sector in areas such as waste management and energy efficiency, and structures its infrastructure supply and maintenance contracts through public bidding processes, which reinforces its close relationship with public agencies and the legal framework applicable to state-owned companies.

In the field of sustainability and governance, Telebras discloses environmental, social, and governance information in its own annual report, prepared in line with CVM regulatory requirements. The document is submitted for validation by internal governance bodies, although it does not yet undergo specific independent assurance. The company is developing its materiality matrix and defining ESG key performance indicators, supported by an internal environmental, social responsibility, and governance policy that takes the UN Sustainable Development Goals as a reference. Although it does not yet conduct a greenhouse gas emissions inventory or formally adopt recommendations such as those of the TCFD, it states that it is carrying out initiatives to improve the monitoring of environmental impacts and the structured tracking of its ESG actions.

In addition to its direct telecommunications operations, Telebras maintains a significant stake in VISIONA Tecnologia Espacial S.A., an aerospace joint venture with Embraer Defesa e Segurança Participações S.A., in which it holds 49% of the share capital. VISIONA focuses on research, development, manufacturing, and service provision related to satellites and space systems, working on projects linked to the National Broadband Program and to strategic communications for defense and government. Although it does not consolidate financial statements with this investee, the stake reinforces Telebras’s ties to Brazil’s space infrastructure and to technological innovation initiatives in strategic communications. Overall, the company positions itself as a state-owned telecommunications infrastructure operator, with a strong emphasis on secure connectivity and services of public interest, supported by a nationwide fiber-optic network and a geostationary satellite dedicated to full coverage of Brazilian territory.