I think here, what we see is a huge opportunity for digitalization companies in Brazil, especially if you go to the mid-bottom where the level is very still very low after pandemic. These customers are very interested. They need someone to help them doing that, have 5,000 sales reps that can be very close to these customers and helping this digitalization process. I don’t know if I answered your question, but that’s what we have right now, R$3.2 billion annual basis of revenues, more than 6% of total revenue, double-digit growth in the last quarter’s one after the other.
David Melcon: And Carlos, taking the first question on personnel costs. I mean, the main driver for this growth had to do with insourcing of activities. These are mainly area related to IT and B2B and also accelerating the growth in new services and new businesses as, of course, we need to also to recruit the best people to drive those businesses, plus the salary increase that we normally have as part of our business as usual. I think regarding the trends, if you look at the number this quarter, I mean, we are growing less than we were growing in the second quarter and also less than what we were growing on the first one. So we are seeing a positive trend. But as we said before, total cost is what we are looking at. So no matter perhaps if it’s one line or another one. And we are seeing a very controlled cost and growing below inflation. So that’s it.
Carlos de Legarreta: Thank you for the color. I guess as a follow-up to that, is that in-sourcing process expected to finish in the near future, or should we continue something – I mean this to be a driver to perhaps drive personnel expense growth above inflation for next year.
David Melcon: I mean this is something that we – I mean ad hoc, depending on what we see the evolution, there is no big program for insourcing that could drive this cost up. But this, I would say – this ends up being more business as usual.
Carlos de Legarreta: Okay. It’s just an ongoing process.
David Melcon: Yes.
Carlos de Legarreta: Okay, thank you so much.
David Melcon: Thank you.
Operator: Our next question comes from Carlos Sequeira from BTG Pactual. Please Mr. Carlos, your microphone is open.
Carlos Sequeira: Hi, good morning. And congratulations on the results, were amazing. I have a couple of questions really. One is Bernardo asked earlier a question on rent sharing agreement. And I want to just make a follow-up. I saw that ANATEL put up for sale – put up for public consultation rules that prevent the big telcos from executing rent sharing agreements in cities with less than 100,000 people. And my question is does that change in any way your plans or capital requirements, assuming it’s approved, right, to deploy 5G in these most cities, please? That’s the first one. And the second one is a more straightforward one. Oi put up for sale its fiber client base and I’m wondering if that makes sense for you eventually. Thank you.
Christian Gebara: Carlos, thank you for the comments and the question. The first one is a public hearing now that ANATEL has in place. Yes, I think, we’re going to give our opinion. I think rent sharing is a very positive way to optimize CapEx and to increase coverage. And I think the country that needs more coverage needs to find new models of network expansion, especially now that we have 4G, 5G and in the future we’re going to have different technologies. So our opinion here is that rent sharing should be available, and we are doing that in 2G. That is a technology that we can shut down. We are doing that in single grid, we are doing that in 4G with TIM, as I explained to Bernardo. And of course, we imagine doing that with different technologies in more places.
And again, that’s necessary to a country the size of Brazil to reach everyone. Now there’s a lot of discussions also about schools being covered, suburban areas being covered, remote areas in Amazonia being covered. And we are keen on covering that, but we need to save CapEx in other places to be able to reach this coverage that is also demanded and we wanted to fulfill. So again, participating and having a very strong opinion about coverage and the need to optimize investments. Second one, we’re going to – it’s a new process, no, of the sale of Oi customer. We need to understand, especially because we don’t have any detail understand that these customers today are using the infrastructure of a neutral network. So what is the relationship and what is the contract of these customers that Oi has today with the neutral company, not the Vita in this case, who buys customer, buys the contract, what are the conditions of this contract.
So I think there are many questions to be answered. We participate in everything related to any opportunity in the fiber business. So far, we haven’t been a buyer of anything, but again, being the number one company in network and in customers in Brazil, we need to see what is there and understand all the details, especially related to the contract of the usage of the neutral network that I mentioned before.
Carlos Sequeira: Okay. Thank you, Christian. So on the rent sharing, my understanding is that you hope that this possibility will not materialize, right? ANATEL will understand that there are bigger goals they should be looking at rather than preventing companies from doing rent sharing, right? That’s your view.
Christian Gebara: Yes. That’s my view. That’s my view.
Carlos Sequeira: Yes. And on the Oi process, do you have an idea on timing for that? Or it’s so new that you don’t have any idea? Just wondering, I don’t have any.
Christian Gebara: We don’t have any official timing that was presented to us, only in the press, nothing official.
Carlos Sequeira: Okay, thank you very much.
Christian Gebara: Thank you.
David Melcon: Thank you, Carlos.
Operator: Thank you. This does conclude the question-and-answer section. I would now like to hand the floor back to Mr. Christian Gebara for the company’s final remarks. Please, Mr. Christian, you may proceed.
Christian Gebara: Well, thank you all for participating. We are very satisfied with a very strong quarter, now the third in this year with strong results in all lines. We’ll keep on with our strategy now. It’s based on having the best infrastructure for digitalization in the country and the ability to go beyond telco and add new digital services. And I believe we are being able to prove that is also successful and relevant part of the revenue going forward. So again, we have all the team here available for any additional questions that you may have. And once again, thank you for your participation.
Operator: Vivo’s conference is now closed. We thank you for your participation and wish you a very good day.
