Telefônica Brasil S.A. (NYSE:VIV) Q4 2022 Earnings Call Transcript

Christian Gebara: Hi, Marcelo. Let’s talk about the mobile dynamics. Also, as we presented, commercially speaking, it was a great year for people, we continue to expand our market share. And we continue to expand both in prepaid and in postpaid. No, so when we see the number that we have to deal with 980 million access compared to 83.9, already had one year before, of course, you consider that the 12 million that we got from oil, but the 3.3 that we just connected now. So in real numbers and absolute numbers was very, very, extremely positive. And in net ads, we’ve worked a leading company and portability as well. So that also again an example of our perceived superior value proposition and when we add that to the fiber, one that the people total that I mentioned before also put us in a unique position to be the leading company of both technologies for 4G, 5G plus fiber.

And our current reflects that the 1.05 of the last quarter was the lowest one and the market share of almost 39%. Having said that, we are very, very keen on monetizing all the investment I’ve been doing in the last years. So we are the one increasing prices. We did that last year, we are doing again in the entry plans for all our postpaid plans. So give you an example. Now in January, our entry planning for a hybrid was adjusted to BRL57, used to be BRL50.99. So that was an important increase. And when I compared to others, we are above them in price and in what we offer by this price. So I think it’s a normal behavior that we expect to be followed by others, because we are going to give him back what inflation is at the moment. And also giving back to customers, what was the benefit that they got from the ISMS reduction.

We did the same in the entry point of our individual postpaid plan. Today, our first plan is BRL122 per month. And the same we did in a family plan that is also good plan for us that we increased to BRL242. During the same in the Vivo total, also increasing our bundle that I said is responsible for 70% of our FTTH sales. Again, here, we increase price. Now, the first one is a BRL200. So we’re putting the market in a different price point, expectation that our peers follow this movement because we are wanting to win here is passing through inflation. The same in the fiber in FTTH 50% of our customer base will be increased in price. So we have now the entry price of BRL120, with 300 megabits as the speed for the fiber service. In prepaid, would like to do the same — in the prepaid price has been the same level for many years.

Now we just have the benefit of the ISMS reduction with more data that is offered to the customers, we need to move this price up, especially when you move the hybrid price up. If you don’t do that in your prepaid will be difficult to continue with the successful strategy we are being all falling of migrating prepaid to hybrid. So here again, we expect market to move up in prepaid as well. I think that was the first question the second one was–

Marcelo Santos: In Vivo Money?

Christian Gebara: We will compliment Vivo Money. We are very — sorry, do you want in first one Marcelo? Should I move to the second?

Marcelo Santos: No, no. The first one is perfect. Just reminding the Vivo Money question. Thank you.