Telefônica to focus on bundled services, pre to postpaid migration

Integrating services, migrating customers from pre to postpaid services and increasing broadband penetration top the list of Telefônica's goals for its operations in Brazil, the telco's executive director, Paulo Cesar Teixeira, said in a conference call with investors.

"We want to continue growing our voice and fixed wireless solutions, bundling our products, expanding our [push-to-talk service] Vivo Direto community and driving the pre to postpaid migration," Teixeira said.

According to the executive, the first positive results of mobile operator Vivo's integration into Telefônica's operations were seen during Q3, when net profits reached 1.33bn reais (US$751mn), up 6.6% on the same period last year. Quarterly net revenue was up 4.5% on the year to 8.26bn reais.

The carrier ended the quarter with 67mn mobile subscriptions, up 16.2%, while revenues from data and value-added services grew 43.2% to 1.2bn reais.

On the data side, Teixeira stressed that Telefônica is looking to increase its broadband base by bundling fixed and mobile broadband and enhancing ultraband offers. At the same time, though, the executive declined to comment on Telefônica's possible participation in 2.5 GHz tender for 4G spectrum, scheduled for April.

"We believe we still have room to increase coverage and get a return on investments in 3G, since the last auction took place not so long ago. So there's no need to rush that," he said.

Concerning the fixed-line segment, in which subscriptions decreased 1.9% year-on-year to 15.3mn, Teixeira acknowledged that market prices are being brought down by fierce competition. To respond to that and to protect its base, Telefônica will be increasing its offer of specific and tailored promotions, he said.

In the pay-TV segment, Teixeira highlighted the approval by antitrust authorities for the acquisition of pay-TV provider TVA and said the company "is working on several fronts to offer bundled services."

The company is looking to unite all services under the single brand of Vivo, which "will help our group to overcome challenges," he added.