VIVT3

Telefônica Brasil S.A., traded on B3 under the ticker VIVT3, is one of the main telecommunications operators in the country and part of the Spanish Telefónica group. The company originated from the former Telecomunicações de São Paulo S.A. – TELESP, which was part of the Telebrás System, a state-owned telecommunications monopoly created in 1972. In 1998, during the privatization of the sector, the Telebrás System was broken up into regional holding companies and the then Telesp Participações S.A. was acquired by the Telefónica Group. From that point on, the company underwent successive corporate restructurings, mergers and internal reorganizations that consolidated its nationwide operations in fixed and mobile services.

A key milestone in Telefônica Brasil’s trajectory was the integration of Vivo’s mobile business. In 2010, Telefónica S.A. acquired all of the capital of Brasilcel, then the controlling shareholder of Vivo Participações S.A., thus gaining full control of the mobile operation. Between 2010 and 2011, ANATEL and shareholders approved the stages of the restructuring that culminated in the merger of Vivo Participações into Telefônica Brasil, making Vivo a wholly owned subsidiary and unifying the provision of mobile and fixed services under the same group. On October 3, 2011, the corporate name was changed from Telecomunicações de São Paulo S.A. – TELESP to Telefônica Brasil S.A., reflecting the nationwide scope of its operations, and the trading codes on what was then BM&FBovespa became VIVT3 and VIVT4.

Over the following decade, Telefônica Brasil expanded its scope with strategic acquisitions in digital services and infrastructure, reinforcing its positioning as a convergent telecommunications and technology group. In 2014, it acquired GVT Participações S.A., which owned operator Global Village Telecom, a relevant player in fixed broadband and pay TV in Brazil, strengthening its national presence in ultra broadband. Later, it consolidated value-added services, IT and digital solutions in the former Telefônica Data S.A. (TData) and carried out transactions such as the acquisition of Terra Networks Brasil, specialized in digital services and mobile channels, and Telefônica Infraestrutura e Segurança Ltda., focused on engineering projects, corporate security, information security and the Internet of Things. These initiatives integrated connectivity, content, cloud and security capabilities into the group’s portfolio.

Telefônica Brasil’s business model is based on the integrated provision of telecommunications services and digital solutions for residential, corporate and government clients. The company operates in fixed and mobile voice, fixed broadband, ultra broadband via fiber, mobile data, IPTV pay TV, information technology services, cloud computing, digital security, IoT and value-added services. As of December 31, 2024, it held a leading position in the Brazilian mobile telecommunications market in terms of accesses, with a 38.8% share, as well as a 41.3% share of the postpaid segment, which is traditionally higher value-added. In FTTH broadband, it recorded a 17.6% share of the national market, supported by a fiber network that reached approximately 31.5 million households, of which 29.1 million were covered by FTTH technology.

The company’s operating segments include fixed voice services, mobile services, data and broadband, pay TV, and network and wholesale services. In fixed telephony, Telefônica Brasil offers local, intraregional, inter-regional and international calls, with services provided under both public and private regimes, including subscriptions, public telephony and services measured within concession areas and authorizations. In mobile, the Vivo brand offers prepaid, postpaid and family plans with 3G, 4G, 4.5G and 5G voice and data, as well as digital services such as entertainment apps, music, cloud backup, health solutions and loyalty programs. In broadband, it offers fixed access via FTTH, FTTC and xDSL with speeds of up to 1 Gbps, as well as mobile coverage in practically all Brazilian territory, with 3G networks in 5,060 municipalities, 4G in 4,814 municipalities, 4.5G in 3,873 municipalities and 5G in 504 municipalities at the end of 2024.

The network infrastructure is one of Telefônica Brasil’s main assets and supports revenue generation in both retail and wholesale. The company operates a high-capacity national IP backbone, with intensive use of fiber optics and virtualized network elements, adopting technologies such as NFV, SDN and cache and CDN solutions to bring content closer to the network edge and reduce latency. In wholesale, it provides Dedicated Line Industrial Exploration (EILD), dedicated circuits, L2L, IP, Ethernet and MPLS for other operators and regional providers. Technological modernization includes the migration of legacy TDM switches to next-generation platforms, consolidating voice services on VoLTE, VoFTTH and SIP, and preparing the data core for Standalone 5G, focusing on low-latency applications, massive IoT and private networks. In pay TV, after discontinuing the DTH model in 2022, the company has focused on offering IPTV over its FTTH network, with an open platform and integration with video and OTT services.

In terms of markets served, Telefônica Brasil, through the Vivo brand, operates throughout the entire country, with a strong presence in the state of São Paulo and broad coverage in the other states, in both mobile and fixed services. Its customer base includes residential consumers, small and medium-sized enterprises, large corporations and public agencies, with customized solutions for corporate data, IT, cloud, information security and mission-critical connectivity. The network and wholesale services enable interaction with other players in the sector, allowing third-party data traffic over the company’s infrastructure. The company also operates financial initiatives linked to the telecom ecosystem, such as Vivo Pay, whose credit origination is structured via Credit Receivables Investment Funds (FIDCs), in partnership with specialized managers.

Telefônica Brasil operates in a highly regulated environment under the supervision of the National Telecommunications Agency (ANATEL). The company depends on concessions and authorizations to provide telecommunications services under public and private regimes, as well as radio frequency licenses to operate mobile networks. In the 5G auction held in 2021, it acquired national blocks of 3.5 GHz and 26 GHz, as well as regional licenses of 2.3 GHz, totaling R$ 4.45 billion between license value and associated investment commitments. These spectrum assets, with a renewable 20-year term, form the basis for the evolution of the mobile network and the large-scale rollout of 5G services. The company also complies with cybersecurity and data privacy standards, maintaining governance structures aligned with international frameworks such as the CIS Controls, with dedicated teams for risk management, threat monitoring and attack simulation exercises.

In the environmental, social and governance (ESG) field, Telefônica Brasil develops initiatives related to waste management and recycling through companies such as Recicla V Comércio e Reciclagem de sucatas e metais Ltda., which is engaged in the purchase, sale and recycling of metal scrap, cables, fiber optics and electronic equipment. The company also invests in information security and infrastructure solutions through structures such as Telefônica Infraestrutura e Segurança Ltda., integrating aspects of data protection, monitoring, consulting and training in technology and security. Corporate governance includes a public company structure with shares listed on B3, interests in specialized operating subsidiaries and the adoption of practices for network risk management, technological modernization and energy efficiency in the operation of data centers and access networks. In this way, the company consolidates its position as a large-scale telecommunications operator, with a diversified service portfolio and nationwide operations, reflected in the role of VIVT3 in the Brazilian stock market.