Telefonica, Portugal Telecom Appoint Management At Brazil Unit"

SAO PAULO -(Dow Jones)- Spain's Telefonica (TEF.MC) and Portugal Telecom (PT) have appointed a new chairman and a new chief executive for their Brazilian joint venture, Vivo, the companies said Friday.

Fernando Xavier Ferreira will take over as chairman of the board, replacing Felix Ivorra.

Roberto Oliveira de Lima has been appointed as Vivo's chief executive, replacing Francisco Padinha, who returns to Portugal Telecom's headquarters in Lisbon.

These are routine changes envisaged under the agreement signed when Brasilcel NV, as the Brazilian joint venture is formally known, was established in late 2002, the companies said.

Ivorra and Padinha have led Brasilcel from the beginning, including the April 2003 launch of the Vivo brand for its five operating units, the largest of which is Sao Paulo's Telesp Celular Participacoes SA (TCP).

Miguel Horta e Costa, chief executive of Portugal Telecom, praised the outgoing team, which has run Vivo since its inception.

"Vivo is closing a notable cycle in its life," Horta e Costa said. "This company is a source of pride for Portugal Telecom as well as Telefonica."

Vivo had about 27 million customers at the end of the first quarter, making it the largest single operator in South America.

Horta e Costa acknowledged the intense competition in the local market, and said the new team will have to work hard to maintain market leadership. Vivo should focus on leadership in the market for higher-paying contract customers, rather than prepaid, he said.

Telefonica's chairman, Cesar Alierta, said Vivo would maintain its market leadership by focusing on the quality of services.

- By Matthew Cowley and Rogerio Jelmayer, Dow Jones Newswires; 5511 3145 1479; matthew.cowley@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 20th May 2005