We ended up doing that in 180 cities, but we are now preparing ourselves to do more cities. So it took us more time, technically speaking, especially because we also had the Oi deal in the middle of the process that we put our network focus in migrating customers and also integrating their frequency in our portfolio. And now we are again ready to expand this single grid to more cities. I don’t give you a number right now, but there is opportunity to expand it. And then there is a third element of this agreement that is the 2G network that we want to consolidate and shut down. That also had a very good progress. We concluded now the rollout almost. I think we have like more than 1,000 cities today that we have the 2G networks already consolidated.
Here there is also room to expand it. And once it’s expanded, we are close – shutting down 2G infrastructures as a whole. So 1,000 cities that we already have the consolidation in the future, apart from having the consolidation, we may shut down the 2G and use the frequency to other technologies. So that’s the status. Some progress still room to come and the last year impacted by the Oi integration for both operators.
Bernardo Guttman: Very clear. Thank you very much, Christian, David.
Christian Gebara: Thank you, Bernardo, for the question.
Operator: Our next question comes from Marcelo Santos from JPMorgan. Please, Mr. Marcelo, your microphone’s open.
Marcelo Santos: Hi. Good morning, Christian, David, everybody from the Vivo team. Thanks for the opportunity for making questions. I have two. The first, you had some fines on the de-commission of Oi sites. So I just wanted to ask where you are on the process of decommissioning these sites and how much gain – if you could give us an idea, how much gain could we expect in leases going forward? And the second question is on fiber adds. The number of fiber adds you are having is growing. I wanted to see the outlook you have for this. I mean, you’re approaching the levels of last year. So it’s a good sign. Is this because of better competitive environment, better macro? I mean, could you give some color on reasons for the improvement and the outlook? Thank you.
Christian Gebara: I’ll go to the second question, Marcelo. There is thinking – is the result of a better value proposition? No. We are in 25 million homes already. We’re going to get to 29 million by the end of next year. We have 6 million customers, we’ve been able to sell, especially that I think I highlighted here. In our stores, most of the customers buying fiber is buying Vivo Total. That has the combination either the customer came with the mobile and acquired fiber or had nothing with Vivo and ended up being both fiber and 5G. With the Vivo Total, we have more than 1.1 million. We’ve been very successful also adding digital service to this offer. We’ve been also very successful in providing high speed experience to our fiber customers.
That’s also due to the technical network – the high quality technical network that we have and the high-quality CPEs that we have. We also have been investing a lot in our technicians. So, a customer is buying not only fiber but is also buying a Wi-Fi experience that we’re expanding to a smart home experience very successfully. So it’s a combination of many factors. Now here there is no gain because we are promoting anything. I think the gain of customers is related to a better value proposition, leveraging on what we said here before, though, customer base, network quality, channel presence, physical and digital brand, strength of the brand and the possibility to offer convergence in a way that no one can replicate at the moment. So all this give this very strong result, and we are very positive about the successful trajectory of this strategy going forward.
I don’t know if you have more questions in this, otherwise David will answer about the addition of the [indiscernible].
David Melcon: Marcelo, thank you for the question. So first of all, I think, the underlying OIBDA growth we have this quarter is very strong, and it’s coming from a significant acceleration of the growth in revenues, but also on controlling the costs and acceleration of digitalization, Vivo app, and so on. So we also – as we explained last quarter, we also terminated with transition service agreement with Oi that is giving us OpEx savings of around R$140 million per year. So as you mentioned this quarter, we also have a couple of impacts coming from the Oi acquisition. So we finally reached an agreement regarding the Oi price. So we got R$244 million cash back plus R$33 million interest that are also receiving this quarter.
And as you mentioned, we also are still negotiating some of the towers’ leases that we receive from Oi. So in total, we received 2,700 sites, out of which we are going to maintain 800 of those. So the rest, which is something like 1,900 are going to be canceled and decommissioning in the next quarters. So, we are progressing well on the negotiation with the towers company. So we have already agreed with some of them cancellation in the third quarter. And also, we are progressing with the rest, and we are hoping to have everything agree in the next two or three quarters. So, overall, I mean, that’s it. So we are very efficient on managing those contracts. And as you mentioned, we had an impact of R$69 million cost this quarter, which are noncash as we are continue negotiating and will we see at the end of the next couple of quarters, the end of the negotiation, but this is what we have so far, but I want to mention that the underlying OIBDA growth is very strong.
Marcelo Santos: Okay, perfect. Very clear. Thank you very much.
Operator: Our next question comes from Leonardo Olmos from UBS. Please Mr. Leonardo, your microphone is open.
Leonardo Olmos: Hi. Good morning everyone. Hope you are all well. I got a single question. Can you please discuss the main potential tax change you’re facing now? And how could that affect your earnings or other parts of your cash conversion? Thank you.
Christian Gebara: Hi Leo. David can give you more color if you want. But there is no change right now that we are talking about – we’re talking about the interest on capital. That is still under the initial discussion. So David can give you some color. But the other one, the other tax is still waiting to see what’s going to be the outcome, the one more related to consumption. Here, we are now always advocating for the essentiality of our service, the possibility of having a better tax over digitalization connectivity would help the country in many ways. That’s what we try to advocate because, as you know, we pay a lot of tax over the service that we sell to our end customers, on average, 35%. And when there was this decrease in SMS, in some states, they were very positive, I think, for inclusion and for many other things that we could calculate here during this period.
So this is the tax that we have right now. The one in interest on capital, David can give you some more color.
David Melcon: Yes, Leo, thank you for the question. So at this moment, it’s too soon to talk about any potential impact. This matter is not solved nor defined at the executive or legislature level. Anyhow in the end of interest on capital goes through in anticipation of a broader income tax reform, which we believe will also have targets a reduction of our current corporate tax rate. So we have relevant alternatives to maintain our solid levels of shareholder remuneration, such as reducing our capital stock, leveraging the company, speeding up share buybacks, but anyhow, we are not expecting any change this year.
Leonardo Olmos: Got it, thank you. And since you are on regulation, can you talk a little bit about the secondary spectrum, the use of secondary spectrum by local ISPs. How are you seeing on that? What do you expect?
Christian Gebara: I don’t know if there is – there is no demand. I don’t have anything relevant to share with you all right now. We haven’t been demanded. And so I really don’t have anything new to share about what’s the specific question if there is demand or because so far, there is nothing new to share.
