TelefÔnica Brasil S.A. operates as a mobile telecommunications company in Brazil.
The company has a particularly strong position in postpaid mobile services. The company’s Vivo brand, under which it markets its services, is among the most recognized brands in Brazil. It offers its clients a complete portfolio of products, including mobile and fixed-line voice, mobile data, fixed broadband, ultra-fast broadband, or UBB (based on its FTTH and FTTC infrastructure), Pay TV, information technology,...
TelefÔnica Brasil S.A. operates as a mobile telecommunications company in Brazil.
The company has a particularly strong position in postpaid mobile services. The company’s Vivo brand, under which it markets its services, is among the most recognized brands in Brazil. It offers its clients a complete portfolio of products, including mobile and fixed-line voice, mobile data, fixed broadband, ultra-fast broadband, or UBB (based on its FTTH and FTTC infrastructure), Pay TV, information technology, and digital services, such as entertainment, cloud, security, and financial services. The company also has one of the most extensive distribution networks in the sector, where its clients can obtain certain services, such as purchasing credit for prepaid phones.
The company seeks to continue to increase its operating margins by focusing on developing and growing its product offerings so that they comprise an integrated portfolio that allows it to extend its customers' lifetime value.
On October 11, 2024, FIDC II ceased to exist as the company was merged into FIDC I. Subsequently, on April 29, 2024, ‘FIDC III’ was created to operate the ‘Parcela Pix’ product, with a single investment from the company.
In May 2024, the FIP closed the acquisition of a shareholding position in Conexa Health LLC, the controlling company of Conexa Saúde Serviços Medicos S.A.
In July 2024, FIP committed to acquiring a minority equity stake in CRMBonus Holding. CRMBonus operates a platform that leverages artificial intelligence to enhance relationships between companies and their customers, promoting the concept of ‘giftback’ in the Brazilian market.
In November 2024, the FIP acquired a minority stake in AGL Holding, the parent company of Agrolend Credit Company. Agrolend is an agricultural fintech that provides credit to small- and medium-sized rural producers in Brazil.
On July 22, 2024, TelefÔnica Cloud e Tecnologia do Brasil S.A. (‘TCloud’), a subsidiary of the company, entered into a purchase and sale agreement for quotas and other covenants to acquire all quotas issued by IPNET Serviços em Nuvem e Desenvolvimento de Sistemas Ltda. (‘IPNET’) and IPNET USA, LLC (‘IPNET USA’), subject to the achievement of operational and financial metrics.
On October 1, 2024, TCloud signed the closing agreement, completing the acquisition of all quotas issued by IPNET and IPNET USA.
Operations and Services
The company’s operations consist of local and long-distance fixed-line telephone services, mobile services, including value-added services, data services, including broadband services and mobile data services, Pay TV services, mainly through IPTV, network services, including rental of facilities, as well as other services, wholesale services, including interconnection, digital services, services designed specifically for corporate customers, and the sale of wireless devices, accessories, and consumer electronics.
Fixed-line Voice Services
The company’s portfolio of fixed-line telephone services, or STFC services, includes local, domestic long-distance, and international long-distance calls provided both on the public and private regime.
Local Services
Fixed-line local services include activation, monthly subscription, public telephones, and measured services. Measured services include all calls that originate and terminate within the same area code within the company’s concession region, which it refers to as local calls.
Intraregional, Interregional, and International Long-Distance Services
Intraregional long-distance fixed-line services consist of all calls that originate in one local area or municipality and terminate in another local area or municipality within the company’s concession region. Interregional long-distance services consist of state-to-state calls within Brazil, and international long-distance services consist of calls between a phone line in Brazil and a phone line outside Brazil. The company was the first telecommunications company to be granted the authorization to develop local, intraregional, interregional, and international services throughout Brazil, including outside its concession area.
Mobile Services
The company is the leading provider of mobile telecommunications services in Brazil.
The company’s mobile portfolio includes voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as value-added services, such as Atma, VivaE, Vale Saúde, Vivo HomeFix, Vivo BTFIT, Go Read, Ubook, Hube Jornais, NBA, McAfee, Forbes Brasil, Casa do Saber, Super Comics, Skeelo, Babbel, and Vivo Pay, prepaid plans with data sharing features, family plans, voice mail, caller identification, voice minutes in unlimited bundles to mobile and fixed-line phones, and digital services, such as multi-media backup, cloud-based services to save texts, entertainment and music apps, advertising platforms, among others.
The company also offers wireless roaming services through agreements with local mobile service providers throughout Brazil and other countries, allowing its subscribers to make and receive calls while outside of its concession areas. It provides reciprocal roaming rights to the customers of the mobile service providers with which it has such agreements.
Data Services
The company provides fixed broadband through fiber (i.e., FTTH and FTTC) and xDSL technologies, with download speeds reaching up to 1 Gbps.
In 2024, the company continued to cover 100% of the municipalities in its concession area in the state of São Paulo and hundreds of others throughout Brazil, reaching approximately 7.0 million fixed broadband customers in total, and it expanded its national fiber network to reach approximately 31.5 million homes, of which 29.1 million consisted of FTTH technology.
In mobile broadband, the company uses a variety of technologies to provide wireless internet services to its customers. As of December 31, 2024, it covered 5,060 municipalities with its 3G network, reaching 97.9% of Brazil’s population. It also offers 4G LTE technology, which, by the end of 2024, was available in 4,814 municipalities, reaching 96.6% of Brazil’s population, 4.5G LTE through carrier aggregation in 3,873 municipalities, reaching 91.6% of the Brazilian population, and also 5G technology, present in 504 municipalities, equivalent to 61.3% of the Brazilian population.
In November 2021, ANATEL held the largest spectrum auction in the company’s history, which included 4G and, for the first time, 5G blocks, with 700 MHz, 2.3 GHz, 3.5 GHz, and 26 GHz lots. On that occasion, the company acquired 3.5 GHz and 26 GHz national licenses (100 MHz and 600 MHz bandwidths, respectively). It also won regional 2.3 GHz licenses, with 50 MHz bandwidth in the southeast region of Brazil (except for the state of São Paulo and PGO Sector 3) and 40 MHz bandwidth in São Paulo state and in the north and mid-west regions of Brazil (except for PGO Sectors 22 and 25). The licenses ensure the company has the required spectrum to provide 5G services and are valid for 20 years (renewable under the then-existing legal conditions at the expiration of this term).
Pay TV Services
The company began offering subscription-based television services, or Pay TV services, via DTH (‘direct to home,’ a special type of service that uses satellites for the direct distribution of television and audio signals to subscribers) on August 12, 2007. By the end of 2022, it discontinued the DTH operations, disconnecting all customers. From 2023 onwards, it only provides Pay TV services by means of IPTV (a type of service that offers video broadcast through the IPs) technology. As of December 31, 2024, the company had approximately 785 thousand Pay TV customers.
Network Services
The company’s network management technology ensures comprehensive management and supervision of all its network processes and network performance for its clients. The company’s network management center monitors the critical network operational parameters of the countrywide transmission backbone, IP networks, mobile and fixed packet/circuit core networks, value-added services/multimedia platform and global services, radio access network, infrastructure, and online services performance, as well as fixed access network across the country, broadband networks, network interconnection, portability, and IPTV/DTH. The center is able to identify abnormalities in both the company’s network (fixed and mobile) and in third-party networks, including networks of other operators and other corporate clients, using failure, signaling, quality, and service monitoring systems. The company’s network management center is integrated with maintenance and operations teams that maintain and operate mobile and fixed network elements, as well as infrastructure and transmission, in addition to the radio network elements and computing bases, service platforms, and communications backbones.
The company’s network provides for continuity of service to its customers in the event of network interruptions. It has developed contingency plans for potential catastrophes in its switchboard centers, power supply interruptions, and security breaches.
The company continually strives to enhance its network and expand its offerings to deliver exceptional service to its customers and meet their expectations. It is consistently improving and refining its primary observability processes to achieve more effective incident correlation, faster fault recovery, and proactive incident management. These objectives are supported by self-monitoring capabilities through the development of a customized Telefónica Event Management System (TEMS), as well as self-healing capabilities enabled by integrated system enablers (PUR) and advancements in Robotic Process Automation (RPA).
Some of the improvements the company has made in recent years include advancements in the migration of time-division multiplex switches to next-generation network switches, which offer new digital services to its clients and reduce its maintenance costs, including improvements in levels of security, power supply, battery, and air conditioning infrastructure. The most significant implementation of fixed network technology has been a project to exchange optical cabinets, used for offering voice and data services for Multi-Service Access Nodes, which allows the company to offer broadband service to many clients who did not previously have this service.
In addition, the company is extensively implementing advanced virtualization solutions, such as network functions virtualization (NFV), to support the launch of the new fifth-generation mobile network (5G-NSA/SA). This network is fully operational and designed to meet future market and customer expectations by enabling massive device connectivity, ultra-high-density deployments through IoT technology, ultra-low latency applications, and higher data transfer rates.
Network and Facilities
The company provides services referred to as the industrial exploration of dedicated line (Exploração Industrial de Linha Dedicada), or EILD, pursuant to its concession agreement and its authorizations. The EILD consists of the rental of dedicated circuits and clear channel protocols for the provision of services to third parties.
In addition, the company is able to offer a complete portfolio of wholesale products, including L2L, IP, Ethernet, and MPLS. All of these products are used to meet the demands of other network operators and regional internet providers. The circuits are requested with different service level agreements, and the company is required to provide the facilities with contingency routes, sites, and equipment to improve the service against points of failure.
The company’s network consists of an access layer that connects its clients through its copper or optical networks, which are connected to voice and data centers. These centers are interconnected locally or remotely through transmission equipment connected predominantly with fiber optics and occasionally through a microwave network, which together form a network layer that enables connectivity between the various platforms, as well as interconnection with other carriers. The company’s network strategy is based on the expansion of the fiber optic access network to allow greater coverage and broadband services for its customers, as well as to develop an integrated multiservice network and multimedia applications. As a telecommunication service provider, the company does not manufacture equipment for the construction of its networks and facilities. It buys the equipment from qualified suppliers in Brazil and abroad, and through such equipment, it implements its networks and facilities through which it supplies its services.
Wholesale Services (including Interconnection)
The company has continuously adapted and expanded its network topology aiming to develop new business opportunities throughout Brazil by offering services to other telecommunications companies.
As part of the company’s wholesale services, it provides interconnection services to users of other network providers. The company earns revenue from any call that originates from another mobile or fixed-line service provider network connecting to one of its customers. It charges the service provider from whose network the call originates an interconnection fee for every minute that its network is used in connection with the call.
As of December 31, 2024, the company had 830 local and long-distance interconnection agreements with it (fixed-line and mobile operation) and 251 agreements for the provision of local and long-distance traffic.
An interconnection is a link between compatible telecommunications networks that enables a fixed-line or mobile service user of one network to adequately communicate with the users of a network from another provider.
All providers of telecommunication services (fixed or mobile) are required to provide interconnection upon request to any other telecommunication collective service provider. The conditions for interconnection agreements may be freely negotiated among the parties. The agreements are required to be formalized by contract, whose effectiveness depends on ANATEL’s approval.
Digital Services (including Value-Added Services)
The sale of digital services has become a key growth strategy for Vivo, driving differentiation and customer retention. To enhance its value proposition, Vivo continuously invests in value-added services, offered either as bundled solutions with mobile and fiber products or as standalone add-ons, ultimately increasing the average revenue per user (ARPU).
Beyond revenue generation, digital services play a crucial role in enhancing customer experience and loyalty.
In 2024, Vivo further expanded its offerings by introducing exclusive promotional periods for its customers. A key highlight was its partnership with Amazon, enabling Vivo customers to enjoy exclusive Amazon Prime benefits. Depending on their plan, eligible customers could receive up to one year of complimentary Amazon Prime membership.
Consistent with previous years, Vivo continued to refine its segmented communication strategies and promotional campaigns, driving a significant increase in add-on sales.
By the end of the year, Vivo had over 3.0 million active streaming service subscriptions.
Financial Services
Financial services are a highly strategic focus for Vivo, strengthening the company’s position as a digital service hub and offering customers much more than just telecommunications solutions. This year, it completed a comprehensive rebranding initiative, establishing the Vivo Pay brand as the umbrella for all of Vivo’s financial services. The company’s journey began in October 2020 with the introduction of Vivo Money, a personal credit service designed for its customers. After two years of testing, 2022 marked the consolidation of Vivo Money as a significant business line. The company’s Personal Loan (formerly called Vivo Money) provides credit ranging from R$500 to R$50,000, payable in up to 36 installments, tailored to each customer’s credit profile.
Continuing the company’s strategy of portfolio expansion, it launched two new credit products in 2024, further enriching the financial services available to Vivo customers:
FGTS Birthday Withdrawal Anticipation—This product targets customers with an available balance in their account with the Brazilian Severance Guarantee Fund (Fundo de Garantia por Tempo de Serviço), or the FGTS, who opt for the birthday withdrawal. This type of credit carries a lower risk of default, as payments are guaranteed through the FGTS balance, with installments deducted automatically; and
Pix in Installments (Parcela Pix)—Fully integrated into the Vivo app within the new Vivo Pay section, this digital credit product allows customers to make payments via PIX in installments. Available 24/7, this service prioritizes convenience and accessibility, enabling customers to access credit products seamlessly online.
The company’s financial services portfolio extends beyond credit solutions, offering a range of products designed to meet its customers’ needs. In addition to these new launches, 2024 was a milestone year for Vivo Pay, as it received authorization from the Central Bank of Brazil to operate as a Direct Credit Society (SCD). This new license enables end-to-end control of its operations and enhances its ability to integrate financial services with Vivo’s existing channels, delivering an improved and cohesive user experience. The first product launched under this license is its digital banking account, a cornerstone of its financial strategy.
Insurance Services
Another key component of the company’s financial services portfolio is insurance. Vivo Seguro Celular, its mobile insurance product in partnership with Zurich, offers customers a simple and effective way to protect their smartphones through a fully digital and seamless process. Building on this successful partnership, it expanded its collaboration with Zurich by introducing new insurance plans for electronic devices, including laptops, smartwatches, headphones, and tablets. These developments highlight the strength of its partnership and its potential to enhance services for all its customers.
In 2024, the company broadened its insurance offerings by enabling customers to purchase and manage policies directly through the Vivo Pay section of the app. Additionally, it introduced a simplified insurance plan with a coverage of R$2,000, priced at a highly competitive R$14.90 per month.
Corporate Innovation
In recent years, the company has not only established new business ventures that have accelerated its digital transformation but also increased the contribution of these services to its overall revenue. These services accounted for 10.2% of its total revenue in the year ended December 31, 2024. The company continues to invest in research and development to create innovative services that enhance its customers’ experience and provide greater convenience in their daily lives:
In the healthcare ecosystem, in 2023, the company acquired 100% of the shares of Vale Saúde Sempre, a startup operating as a healthcare services marketplace. The platform offers affordable access to consultations (in-person and telemedicine), exams, and surgical procedures through a monthly subscription. It boasts an accredited network of thousands of laboratories and medical clinics throughout Brazil. In 2024, the company leveraged this acquisition to expand its operations in the B2C segment, utilizing Vivo’s extensive sales force, increasing its B2B customer base, adding new partners to the accredited network, and introducing dental services. As a result, Vale Saúde Sempre served over 400,000 users in the year ended December 31, 2024, and has seen its net revenue multiply by approximately three times in the year ended December 31, 2024.
In education, the company advanced its joint venture with Ânima Educacional, VivaE, launched in 2022. This EdTech focuses on open courses aimed at preparing individuals for emerging digital market professions. With its proprietary teaching methodology, VivaE offered over 50 courses and surpassed 100,000 users as of December 31, 2024. Additionally, it began exploring the B2B market and participated in TelefÔnica’s internship selection process, where candidates took courses, and the top performers advanced. In 2025, VivaE will begin selling courses directly to companies.
Additionally, the company repositioned its Smart Home value proposition by focusing on key customer journey pillars, such as consultancy, installation, device configuration, and specialized support. Initially offering on-site installation and automation services in São Paulo, the company expanded to every city where Vivo broadband is available. In addition, Vivo launched a home monitoring service that provides cameras for a monthly fee, highly valued by customers with pets, children, and elderly relatives. This service offers options for live feed or recording, accessible via the Vivo Smart Home app. The app now includes a dedicated Smart Home section to educate customers about devices and functionalities, showcase purchasable products, and integrate connectivity and smart home features.
With respect to renewable energy, towards the end of 2023, Vivo signed a contract to create a joint venture with Auren Energia, focusing on renewable energy solutions across Brazil. Initially targeting business customers connected to the high-voltage network with demand under 500 kW, the new company, GUD Energia, became operational in March 2024. By December 31, 2024, GUD Energia had sold over 600 GWh of energy.
Moreover, the company’s corporate open innovation program, Vivo Discover, launched in 2019, continues to foster innovation through mindset transformation and new business development. The flagship program, Vivo Shapers, completed its sixth cohort in 2024 with 30 executives. This six-month program covers key methodologies for innovation processes, startup culture, and strategies for developing new businesses in collaboration with startups.
In addition, Vivo Ventures, the company’s corporate venture capital fund, made four strategic investments in 2024, as follows:
CRM Bonus—The fund announced an investment in CRM Bonus, a platform leveraging artificial intelligence to optimize company-customer relationships and popularize the ‘gift back’ concept in the Brazilian market. Since the start of the year, CRM Bonus’s ‘Vale Bonus’ solution has been included in the benefits offered by Vivo, allowing customers to receive digital money when topping up credits or paying bills on time. This initiative has contributed to improved customer retention.
Agrolend—Vivo Ventures acquired a minority stake in Agrolend, an agricultural fintech providing credit to small- and medium-sized rural producers in Brazil. This financing supports the development of agricultural production and promotes investment in inputs, equipment, and technologies that enhance productivity and profitability. The investment aligns with Vivo’s strategy of establishing itself as a hub for digital services and innovative solutions.
Lend Tech—The fund invested in Lend Tech, a prominent fintech specializing in digital collection solutions for large corporations and small businesses. This investment reinforces Vivo’s commitment to expanding its footprint in the financial solutions ecosystem.
Klubi (Follow-on Investment)—Vivo Ventures made a follow-on investment in Klubi, a fintech authorized by the Central Bank of Brazil to operate as a consortium administrator. Klubi specializes in consortia for cars, cell phones, and electronic equipment. This additional investment strengthens Vivo’s presence in the financial services sector, complementing its Vivo Money offerings. As part of the collaboration, Vivo and Klubi launched the ‘Compra Programada’ product, a cell phone consortium designed to meet customers’ needs.
Corporate Services
The company offers its corporate clients comprehensive telecommunications solutions and IT support designed to address specific needs and requirements of companies operating in all types of industries (retail, manufacturing, services, financial institutions, government, etc.).
The company’s clients are assisted by its highly qualified professionals who are capable of meeting the specific needs of each company with voice, data, broadband, computer services solutions, including hardware and software, and digital solutions, such as cloud, cybersecurity, and IoT. The company works to consistently achieve greater quality and efficiency in its services and increase its level of competitiveness in the market.
Sale of Smartphones, Devices, and Accessories
The company sells 5G NR and LTE devices, such as smartphones, broadband USB modems, and devices that are certified to be compatible with its network and service, including eSIM devices. It also sells a range of connected and non-connected gadgets offering its customers quality and technological products, such as tablets, notebooks, gaming consoles, wearables, speakers, e-health devices, smart home devices, TVs, etc.
The company has special offers on smartphones and other data devices for customers of bundled packages.
The company’s current device suppliers are Samsung, Apple, Motorola, Intelbras, Flex (Mitrastar), Blucastle, Tellescom (Askey), and ZTE, and its gadgets suppliers are Samsung, Apple, Harman (JBL and Kardon), Lenovo, Timbro (Amazon), Intelbras, Positivo (Positivo and Vaio), Steck, Allied (Logitech, TPLink, and XBox), Alfacomex (Geonav), Customic, i2Go, Aya Pitaya, Glowshine, Simerx, Multi (DJI and Multi), DPC (Motorola, Renpho), Proparts (Garmin), Flex (Mitrastar), Tellescom (Askey), Blucastle, RCELL (Nintendo), Sony Entertainment (Playstation), WAP (WAAW), and ZAFF.
Smartphone and other electronics sales continued a positive trajectory in 2024 with important growth results, aligned with the company’s strategy to gain profitability and become an important player in the electronics segment. This was the result of the company’s strategy of portfolio expansion, enhanced distribution, and communication initiatives emphasizing that Vivo can provide everything customers need, as well as through its sales channels attracting high-value customers to its physical and online stores. The company also had important achievements with its own accessories brand, Ovvi, launching new products focused on design excellence and quality, making relevant partnerships and sponsorships, and adding even more market value to its business.
The company will continue to seek to provide everything customers need, leveraging its sales channels, which are focused on attracting high-value customers to its physical and online stores.
Markets of Operation
The company’s concession agreement—which is in the process of being migrated to authorizations—enables it to operate fixed-line telephone services in the state of São Paulo, except for a small region (Sector 33) that is still subject to an earlier concession. In addition, it offers fixed-line telephone services, data, and Pay TV services elsewhere in Brazil, pursuant to licenses and authorization. The company operates mobile voice and broadband services throughout Brazil, under the mobile service (SMP) authorization. It also offers a variety of value-added services, some of them through commercial partnerships.
Marketing and Sales
The company’s commercial distribution network (marketed under the Vivo brand), as of December 31, 2024, consisted of 260 own sales outlets throughout Brazil. It also has approximately 10,180 sales outlets run by authorized dealers (including exclusive dealers and retail channels), maintaining a solid capillarity strategy that contributed to its leadership position in the Brazilian telecommunications market.
As of December 31, 2024, the company had approximately 282,000 points of sale where prepaid mobile service customers could purchase credits using distribution or online channels.
The company brings its solutions to its customers through the following physical sales channels:
Vivo stores: Maintaining the company’s pioneering spirit and leading role in the market, it began the transformation of the PoS (Point of Sale) into a Tech Retail Experience Point, with the inauguration of Casa Vivo, a unique and innovative project that materializes its new positioning, with a focus on offering technology products and services. The company consolidated this transformational strategy in the second half of 2023, with the deployment of this new concept in six stores in strategic shopping malls, that prioritize product exhibition and experimentation, adding value to its entire portfolio through experiencing the services and Smart Home areas, in an amplified format. This direction defines how the company will build the foundations for the formats of all of Vivo's physical sales channels in the future.
Exclusive dealers: This channel is made up of companies selected and certified to supply the company’s complete portfolio of products. These resellers make up an extensive distribution network across the country. Although the channel offers the entire product portfolio, its focus is on postpaid and fiber products. The company is also constantly updating and improving these stores to provide a better customer shopping experience, to ensure that it is consistent across all of its flagship stores. Focusing on business sustainability for both Vivo and its dealers, the company optimized its points of sale while maintaining a presence across Brazil with 1,523 stores as of December 31, 2024. This move reinforces its commitment to agile and sustainable management, aimed at creating value and strengthening its foundation for future expansion.
Retail channel: The company’s retail channel sells prepaid and top-up products that are sold by its partners' own sales teams. In 2024, the company invested in price-led SIM cards in an attempt to reestablish commercial relationships with the retail companies and started to review the operating model with the aim of resuming the channel's growth.
Distribution and digital channel: The broadest and most complex sales channel in the company’s markets allows its prepaid customers to purchase data and voice credits. To be as close as possible to potential and current customers, this channel is made up of accredited agents, lottery outlets, post offices, bank branches, and small retailers, such as pharmacies, newsstands, bookstores, stationery stores, bakeries, gas stations, bars, and restaurants. In digital, it has banks, fintechs, and digital distribution partners. In 2024, this channel was responsible for the majority of its prepaid sales (96%) and top-up revenue (88%). In 2024, the company maintained market leadership in terms of prepaid market share, which was achieved in 2020. The company increased its position in micromanagement, including specific payments to the sales force with granularity at the POS level, and launched several projects searching for portfolio diversification in its channels.
Door-to-door sales: This channel continues to strengthen with the growth of the fiber network across the country, consolidating the sales force, focusing on quality, and now seeking to totalize the company’s customers with fixed-mobile convergent offers. This is a strategic channel that offers convenience to customers and is suitable for selling telecom services to B2C and B2B customers. The fiber market requires important local knowledge for greater sales penetration and that is why a hunter channel, such as door-to-door sales, is so important for this segment.
Outbound telesales: Characterized by the lack of geographical limitations, the company’s outbound telesales channel can reach existing and potential customers across the country, offering possibilities of migration from prepaid to postpaid services, in addition to FTTH. This channel focuses on increasing the customer base, identifying new customers, and offering suitable plans to its existing customers according to their consumption profile.
Customer experience
In 2024, Vivo remained steadfast in its purpose of ‘Digitalize to bring closer’ to create a better world filled with opportunities and development. The company reinforced its focus on ensuring that all customer experiences across its business lines—including connectivity, financial services, health, education, and consumer electronics—were aligned with its value proposition: ‘Vivo is technological and excellent in quality,’ ‘Vivo is close and solves problems,’ and ‘Vivo makes me feel special.’
To strengthen its commitment to this value proposition, Vivo established an executive directory dedicated entirely to Customer Experience (CX). This initiative is guided by six strategic drivers: a standardized and unique view of the customer; online monitoring; an omnichannel experience; problem-solving capabilities; expectation management; and a fully digital approach.
The company’s efforts have been widely recognized in the market, earning several prestigious awards. At the 2024 Experience Awards, Vivo received the award for the highest NPS (Net Promoter Score) in Brazil for mobile and broadband services. Additionally, Open Signal recognized Vivo as the provider of the fastest 5G network in the world, highlighting the success of its technology investment strategy.
Technology
Voice and Data Networks
To offer a greater variety of integrated services, the company has incorporated several new technologies into its voice and data networks. In 2024, it advanced its network virtualization program toward cloudification, enabling it to provide services based on 5G Standalone and other emerging technologies. Additionally, it completed its first Proof of Concept (PoC) using services based on slice technology, incorporating closed-loop control.
For mobile voice services, the company continues to strengthen its voice digitalization program using VoLTE (Voice over LTE) and is increasingly investing in this technology. As a result, it has surpassed 65 million subscribers using VoLTE, a key driver for phasing out legacy technologies, such as 3G and 2G. The company also completed its first PoC with VoNR (Voice over New Radio) service, paving the way to offer voice services over the NR Access Network in the near future.
For the fixed-line voice network, the company provides services, such as VoFTTH (Voice over FTTH), SIP trunking, Unified Communications, and SIP interconnections. It continues to expand its fiber network by launching it in cities already served by copper-based voice services. These efforts are complemented by initiatives focused on energy efficiency, site demobilization, voice digitization, and creating synergies between fixed-line and mobile networks.
To support VoIP growth, the company has consolidated its Unified IMS Core and is deploying Session Border Controllers (SBCs) at its access and peering edges. These initiatives have resulted in significant savings in energy consumption, labor, and maintenance costs. For the Data Core, the company has concluded that 5G offers similar functionalities to legacy networks. In this context, the company’s Capillarity User Plane leverages synergies with the fixed network by reusing CDN and cache solutions to expand into new capital cities in Brazil. This approach improves latency and reduces transmission data volumes in its transport network.
For the Control Plane, synergies with infrastructure and the mobile network contribute to power savings, resilience, and enhanced security through the company’s private cloud initiatives. For IoT and Private Networks, the company has begun expansion and updates to fully support 5G.
The IP Backbone is a strategic asset to meet customer demands and support the development of a large number of services, such as expansion of the company’s 5G services, IoT development, development of cloud and VoD services, expansion of fiber optics to customer homes, and migration of voice and television services to IP.
As the Internet address numbers in Brazil were exhausted in 2014 and the company’s own resources are reaching critical levels, it has seen strong growth in the next version of the IP protocol, the IPv6. Vivo has completed its IPv6 project in 2017, which is important to guarantee full connectivity to its clients and support sales to keep expanding its customer base.
Finally, the company has a solid Carrier Grade Nat solution (CGNAT) already developed for mobile services, which will be extended to fixed-line services along the next years as an additional solution.
In the company’s Telecom Data Centers, the Local Area Network (LAN) structure provides connectivity for platforms and servers on both the fixed and mobile networks. The local network is the access point for all services and provides connectivity to the IP Backbone.
In 2024, the company began the evolution of the TRILL model to the Spine & Leaf model. It has moved from a 3-layer architecture model (Core-Aggregation-Access) to a 2-layer model (Spine & Leaf). The new model is a technological evolution that provides even greater resilience in the local network than TRILL. In addition to greater resilience, the company can leave the architecture with one less layer, which means simplifying the network and reducing implementation costs. With the new Spine & Leaf architecture, the company maintains the concept of decentralization in Telecom Data Centers. Just like TRILL, Spine & Leaf also uses Top of Rack (TOR) and End-of-Row (EOR) switches, allowing cost savings on structured cabling, reduction of energy, space, and cooling. In 2024, the company expanded the ports and took the opportunity to change the technology from TRILL to Spine & Leaf Technology in four existing sites.
In 2024, the company maintained the strategy of structuring its CDN (Content Delivery Network) to improve the customer experience with its services, using the cache solution to reduce bandwidth consumption on the IP Backbone, storing content locally from its main partners. In addition to these existing partners, the company is always looking for new partners to further improve network quality by reducing latency and saving resources on its IP Backbone. This allows the company to optimize network resources and improve service quality. For this network structure, the company uses stand-alone switches.
Network Security
In 2024, the company strengthened the protection of its network by consolidating existing tools and introducing new solutions to enhance Threat Intelligence, Vulnerability Management, and Data Protection. The company expanded its team of highly skilled professionals to support the implementation of security by design, thereby reducing the likelihood of service compromise.
To proactively identify vulnerabilities before attackers can exploit them, the company conducted cyber war games and tabletop simulations with its blue, purple, and red teams in 2024. These exercises aimed to bolster the company’s cyber resilience and defense capabilities. The simulations replicated a cyberattack scenario: the red team focused on identifying and exploiting system breaches, the blue team was responsible for defending the systems, and the purple team set the rules and controlled the environmental conditions of the game.
TV Services
The company offers IPTV services through its FTTH network using an open platform designed to revolutionize the delivery of IPTV services. The company’s open platform includes Pay TV with video broadcasting delivered via IP. Several global partners have developed modules in collaboration with the company to integrate with its existing global video platform. The company’s local team customized the middleware for set-top boxes (STBs) to create a standardized version, enabling faster time-to-market for new developments and product releases, as well as future convergence between IPTV and OTT platforms. To enhance the IPTV ecosystem, the company integrated several components, such as instant channel changes, retransmission, and applications to improve the user experience. Additional services, including pay-per-view and VoD (Video on Demand), are also available.
The company’s IPTV interface was redesigned to improve the customer experience by introducing personalization features and thematic areas (e.g., sports events). In 2024, the company launched a new STB with a small form factor (HDMI stick), supporting 4K video, targeted at customers seeking flexibility and affordability. The Vivo Play App, based on OTT streaming, offers over 80 linear channels and full access to the company’s VoD catalog. The app underwent several software updates in 2024, introducing new features and enhancing the user experience.
5G Acquisition
In December 2021, the company acquired the following radio frequency sub-bands through auction: 2,300 MHz to 2,390 MHz, 3,300 MHz to 3,700 MHz, and 24.3 GHz to 27.5 GHz. These acquisitions will allow the company to expand network capacity in high-density urban areas. With these frequencies, the company ensures the provision of 5G services, significantly reducing latency, enhancing connectivity, and enabling download and upload speeds up to 10 times faster than 4G. These 5G capabilities have facilitated the development and enhancement of services, such as IoT, gaming, autonomous vehicles, virtual reality (VR), industrial automation, and agribusiness.
Acquisition of Part of OI's UPI Mobile Assets
The company acquired part of Oi’s UPI mobile assets, including approximately 12.5 million customers, 43 MHz of spectrum in the 1,800 MHz, 2,100 MHz, and 900 MHz bands with nationwide coverage, and contracts for the use of 2,700 mobile access sites. These assets are located in the Southeast (São Paulo), South (Paraná), Northeast (Pernambuco, Alagoas, Paraíba, Rio Grande do Norte, Ceará, and Piauí), and North (Maranhão) regions, strengthening its network's capacity and coverage.
Mobile Coverage
In 2024, the company continued to expand the capacity and coverage of its mobile networks to absorb continuous growth in voice and data traffic. The company seeks to set itself apart from its competitors by significantly growing its 4G and 5G coverage. As of December 31, 2024, the company’s mobile network covered 5,060 municipalities in Brazil using different technologies, such as 5G, LTE Advanced Pro, LTE, WCDMA, and GSM/EDGE digital technologies, or 90.84% of the total municipalities in Brazil and 97.99% of the Brazilian population. The company has the biggest LTE Advanced Pro (commercially known as 4.5G) coverage in Brazil (with 3,873 municipalities and 91.6% population covered). In the same period, the company covered 504 municipalities in Brazil with 5G Standalone and non-Standalone, which cities together accounted for 61.3% of the Brazilian population.
Since 2015, the company started to develop network sharing in 4G 2,600 MHz coverage with Oi and TIM. As of December 31, 2024, after the sale of Oi and project review, the company covered 126 Brazilian cities using shared radio base stations and 222 cities using TIM’s network through RAN sharing. In 2017, the company also began to develop 3G network sharing with Claro, and as of December 31, 2024, it covered 232 Brazilian cities using shared radio base stations and 137 cities using Claro’s network through RAN sharing. In 2018, the company further began to develop 3G network sharing with TIM, and, as of December 31, 2024, it covered 17 Brazilian cities with shared radio base stations and 27 cities using TIM’s network through RAN sharing. In 2019, the company began to develop network sharing in 4G 700 MHz with TIM (as a proof of concept), and, as of December 31, 2024, it covered 10 Brazilian cities with shared radio base stations and 9 cities using TIM’s infrastructure through RAN sharing. In 2019, the company entered into a network sharing agreement with TIM for 2G, 3G, and 4G technologies, which sought to expand the company’s network and create synergies. As of December 31, 2024, the company covered 363 Brazilian cities with shared 3G/4G radio base stations and 353 cities using TIM’s infrastructure through RAN sharing. From 2021 until December 2024, 3G/4G Single Grid was deployed in the urban area of 180 cities by Vivo and 200 cities by TIM. Also in 2024, 2G Single Grid was deployed in 1,063 cities by Vivo and 785 cities by TIM aiming to accelerate the switch-off of legacy networks. RAN network sharing allows the company to fulfill the ANATEL obligations that were imposed on it as part of its spectrum acquisitions and reduces network deployment and maintenance costs to provide additional coverage at lower costs.
Fraud Detection and Prevention
During the year 2024, the company continued its efforts to combat fraud, focusing on the two main types as follows:
Subscription Fraud: This type of fraud occurs when one or more services are granted without the consent of the true ‘owner,’ with the primary objective of acquiring products and services, causing financial loss. In 2024, the company recorded an 81% increase in losses related to fraud. The main causes of this increase were the identification of new fraud scenarios through investments in layers of security and intelligence rules against fraud, which allowed the company to detect larger volumes of fraud (through biometrics, behavioral analysis of the device, fraud detection and prevention tools, machine learning rules, among others), as well as the constant improvement of existing rules and the continuous review of prevention and detection processes.
SIM Swap Fraud: This type of fraud is characterized by the alteration of the CHIP (ICCID) without the authorization or knowledge of the line owner. Its objective is to use the line to generate irregular traffic with national, international, roaming calls, as well as to criminally access customers' personal information, which is often valuable in extortion, thefts, and online scams. The company had a 77% reduction in cases in 2024. This reduction was related to greater predictability of possible systemic vulnerabilities and access by unauthorized profiles, whose mitigating actions, such as mandatory biometrics and process improvements, were addressed and prioritized. Awareness actions were carried out, constant parameter and rule updates were made, and the root cause was identified for better detection, prevention, and direction in fraud treatment.
Competition
The company’s main competitors in fixed telecommunications services are Claro S.A. and its affiliates (which includes its Claro and Embratel services) and Oi (Oi Móvel S.A. – Em Recuperação Judicial, Oi S.A. – Em Recuperação Judicial and Oi S.A. – Em Recuperação Judicial and their affiliates), which is stronger in the fixed-line services outside the State of São Paulo.
History
The company was founded in 1998. It was incorporated in Brazil in 1998. The company was formerly known as Telecomunicações de São Paulo S.A. - TELESP and changed its name to TelefÔnica Brasil S.A. in 2011.
