Brazilian Network Consolidating its Operations

Brazil's Tele Centro Oeste Celular Participacoes (TCO), part of Vivo, the largest cellular telephone group in South America, has published its consolidated results for the second quarter 2003. Vivo has been concentrating on the implementation of a CDMA network (1xRTT), selective overlay of the TDMA coverage maintained by TCO, stabilization of capability and coverage of TDMA network, and development of new telecommunications services.

"Vivo" has encouraged its operators to adopt commercially aggressive store lay-outs and service plans, as well as unifying the communication of its corporate websites, among other initiatives aimed at capturing synergies.

TCO has achieved systematic client base growth in its area of operations, specifically in the central west and north of Brazil plus the state of Maranhao at a pace that surpasses the national average. In 2Q03, TCO's net additions represented 8.8% of net additions in Brazil as registered by the Brazilian Telecommunications Agency (ANATEL). Retention and loyalty campaigns have contributed to the maintenance of TCO's leadership in this new competitive environment, in particular due to the coverage and quality of service relative to the competition.

TCO, in the second quarter of 2003, expanded its coverage, being present, cumulatively, in 540 municipalities and locations. At the end of 2Q03, TCO provided service to 366 municipalities and locations in its Area 7 operation, and 174 municipalities and locations in Area 8.

TCO is the holding company that controls six cellular operators - Telegoias Celular, Telemat Celular, Telems Celular, Teleron Celular, Teleacre Celular and Norte Brasil Telecom - and a Company that provides IP (Internet Protocol) data services - TCO IP. TCO operates in the Federal District and in 11 Brazilian states: Acre, Amazonas, Amapa, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Para, Rondonia, Roraima and Tocantins, in 5.8 million km2 of territory and 31.2 million inhabitants, representing 18% of the Brazilian population."

Posted to the site on 29th July 2003