Leonardo Olmos: No problem. Thank you very much. Have a good day.
Christian Gebara: Thank you, Leonardo.
David Melcon: Thank you.
Operator: Our next question comes from Vitor Tomita from Goldman Sachs. Please Mr. Vitor, your microphone is open.
Vitor Tomita: Hello, good morning all. And thanks for taking our questions. We have two questions from our side. The first one is on your recent price up to prepaid plans. Did you notice any elasticity impacts such as lower recharge frequency or other impacts after pricing up your plans on prepaid? And do you see room for pricing up other repaid offerings this year are for making other movements on the pricing side? And that would be our first question. Our second question would be on fiber-to-the-home. This quarter saw not only some improvement in volumes for fiber-to-the-home, but also some interesting improvements in transfer of fiber-to-the-home ARPU with year-on-year growth turning positive. Should we see that as a turning point with FTTH ARPU now potentially maintaining a positive growth trend for more quarters? Thank you very much.
Christian Gebara: Vitor, going to the second one, we are not giving a trend on that. But as what I said before, no, we’ve been very successful in increasing the penetration of digital service overall offer. So, selling a lot of OTTs together with fiber. We also are increasing the speed of our offer and also increasing prices related to that. And as you see the average speed of our customer base is also going up. We shared numbers in the last quarter, and we can share also these numbers. So it’s always positive, not only the entry level of the speed but also the mix that we have in our customer base. And also, we are selling more Vivo Total as a way to bundle more services to the same customer. So the trend is positive when you consider that we have a very low churn and customers are choosing our offer in a broader sense, fix more mobile and also adding digital service and going up in the speed.
I think also another room to growth is that we are growing stronger in this concept of smart homes. So apart from selling the fiber itself, we’re selling Wi-Fi connectivity in different rooms, we are selling also the possibility of customers paying for a service of installation of more devices of smart homes. So all this area of home connectivity, we see strategically room to grow. That was the first. I don’t know if you have any more questions on this. In the second, the prepaid we are moving the offer, I think you mentioned that the top-up face value that we increased. We’re increasing the top of face value. But we are also increasing our – we have different offers now, but we are increasing the value of the biweekly offer that was 15.
We are moving already in many states to 17. And the idea is to go to 17 internationally along November. So 17 biweekly offer.
Vitor Tomita: Very clear. Thank you very much.
Christian Gebara: Thank you, Vitor.
Operator: Our next question comes from Phani Kanumuri from HSBC. Please Phani, your microphone is open.
Phani Kanumuri: Hi, thanks for taking my questions. I have a couple of questions. The first one is regarding the timing of the process for the capital reduction process. When is it expected to complete, the capital reduction process? And how would it benefit your shareholder remuneration? And the second question is related to the concession agreement. Do you have any updates on what is happening on the concession process? Thank you.
Christian Gebara: Okay. I’ll go to the first and go to the second. The first in the capital reduction. As you all know, we got approved by ANATEL, up to R$5 billion in capital reduction. So that’s where we stand. We are planning to do – to announce the first tranche of this reduction in the next weeks. To do so, we need to first know, as a management or submit a proposal to our Board of Directors that we may do in the next weeks, as I just mentioned. After that, we should call the general shareholder meeting. That has to be realized 45 days after this call. After the GSM, it is approved, the company should grant another 60 days as a period for authorization of creditors. So considering that we may approve in the next weeks in our Board, then we’re going to call the GSM.
So we have to estimate another 120 days to have it executed. So this is the plan for next steps in capital reduction. In the other question specifically about the migration, and I don’t know what is your question about, because as you know, we have two things here going on. We have one that is a discussion about the value of the migrations that we discussed with ANATEL, we came up with the number, the R$8.7 billion that we discussed – we want to discuss this number because there is some – not a convergence in the value. And on the other hand, we also have an arbitrage process ANATEL, where we discussed a financial equation of the concession that’s more the unbalanced of the original contract and also the sustainability of the contract.
For this, we are demanding more than the R$8.7 billion. We don’t give the number, but it’s a high number where we see the sustainability and balancing of the concession. That is an arbitrage. There is now a solution or an alternative, not a solution, as an alternative, the TCU opens up for a consensus solution where we could put the two discussions on the table and try to come up with a consensus. And we are betting on that solution. So to do so, we have a suspension of the arbitrage process because we want to discuss with the TCU mediating it, the solution consensus with ANATEL. ANATEL submitted this request to the consensus solution to TCU. We are now waiting TCU to accept it. If they accept it, we’re going to have a commission installed, and we’re going to have 120 days to reach this consensus.
And after this final approval by the court, it may last up to another 90 days to get everything approved, so 210 days. So now what we are waiting for is TCU to approve that we can establish the consensus solution or start discussing the consensus solution. So it’s more or less where we stand in the process. If you need more details, then our team here can give you more color on that.
Phani Kanumuri: Very clear, thanks everyone.
David Melcon: Thank you.
Christian Gebara: Thank you.
Operator: Our next question comes from Carlos de Legarreta from Itaú BBA. Please Mr. Carlos, your microphone is open.
Carlos de Legarreta: Hi, thank you. Good morning. I have two questions from my side. The first one regarding your personnel expenses, I would like to understand what has been the driver year-to-date? And also how do you see personnel expenses evolving in 2024? And secondly, talking about the B2B business, obviously, you’ve done very high growth, 28% in the last 12 months. Just want to get a sense if that is because you’re adding new services or you’re just overall growing faster than the market? Thank you.
Christian Gebara: I’ll go to the second Carlos and then I will let David go to the first question, okay? B2B is – yes, we are always launching new services, but we are very focused on the verticals that you know, there is cyber, there is IoT, there is cloud, and there is also sale of equipment. So that’s the main focus as a product perspective. But within this family of products and services, we are always adding new ones, especially when to customize that to specific verticals that we are very structured now by vertical. So the Agro business has some demand different from the retailers. So we’re also – always trying to adapt to the need of a specific vertical and also the need of the different size of companies. As you know, Vivo has 1.5 million customers in B2B, ranging from micro company, small company up to the largest companies of this country.
So we structure also our value proposition based on the size of the company. I think I highlighted in my speech, Vivo [indiscernible] is Vivo My Business, that is very focused to the small company. And here we add cloud services, cybersecurity services, very tailored to this size. So what we’re doing here is always innovating but increasing the penetration. I also said that we sell through Vivo, digital services in these categories that I just mentioned, to less – to the 10% of our customer base. So there is room to sell to more customers and also room to sell more services to the existing customers. So the growth will come this way, more services to our customer base and always innovating in these categories and always also considering new categories if they come along in a relevant way for us to address digitalization.
