T

1
Conference Call Presentation 1st Quarter of 2008
2
Operational Performance Oi Customer BaseGrowth
pace continues in line with new level set in 3Q07
4.1 (14.3)
4.5x
33,0
28,9
Oi Fixed
Oi Velox
Oi Mobile
3
Operational Performance Oi Customer
BaseAnother growth quarter triggered by Oi
Velox and Oi Móvel
38.6
29.7
-2.1
7.9
8.4
-1.3
1Q07
4Q07
1Q08
1Q07
4Q07
1Q08
1Q07
4Q07
1Q08
4
Operational Performance Mobile Market Region I
leads Brazilian growth and accounts for almost
50 of Brazilian wireless market penetration is
still below national average
Region I
Region II III
Brazil
102.2
121.0
125.8
8.2
Brazil
D1Q07
6.1
19.8
Other Regions
4.8
4.5
2.2
Region I
26.8
Penetration
RI
RI
23.2
Brazil
5
Operational Performance Oi Mobile
ClientsPost-paid net additions record best
quarterly performance since 3Q06 Oi Conta
Total accounts for 22.9 of total post-paid
Oi Conta Total
Other post-paid
D1Q07
D4Q07
0.08
0.24
-0.05
0.13
0,.6
13.4
16.0
17.3
Total
8.4
29.7
Post-Paid
Pre-paid
1Q08
4Q07
1Q07
4Q07
4Q07
8.3
31.3
Post-paid
9.0
22.2
Pre-Paid
Market share RI
In this quarter, Tele Norte Celular
Participações (Amazônia Celular) figures are not
yet included. This company had 1.4mn clients in
1Q08, or 2.2 of Region I market share.
6
Financial Performance Consolidated Revenue
AnalysisConsolidated gross revenue up 4.7 from
1Q07, due to a 32.1 increase in mobile revenues
Consolidated gross revenue
Gross Revenue - TNE Consolidated
Fixed Gross Revenue TNE Consolidated
R million
R million
-0.6
4.7
83.9
79.7
Mobile Gross Revenue - TNE Consolidated
R million
32.1
20.3
16.1
Mobile
Fixed
7
Financial Performance Fixed-Line Revenue
AnalysisStable wireline revenues Data, F-M Long
Distance, Advanced Voice and Others partially
offset lower Local Traffic, Public Phones and F-F
Long Distance
5,173
1Q07
Fixed-Mobile
Data
Subscriptions
Network Usage
-0.6
Others
Local Traffic
Public Phones
LD (ex VC2/3)
1Q08
5,143
VC-1VC-2 and VC-3 Additional Services,
Advanced Voice and Others Local Traffic
Other Local Service Revenue.
8
Financial Performance Mobile Revenues
AnalysisHigher Service Revenues with favorable
performances across the board, compensate
reduction in Handset Revenues
Mobile Revenue TNE R million

• Higher subscriptions with increased average
  client base, especially Oi Conta Total
• Outgoing calls revenues increase derives from the
  Oi Ligadores campaign, boosting data/VAS
  revenues

990
1Q07
Services (ex-network usage)
34.5
Network usage
32.1
Handsets
1Q08
1,308
9
Financial Performance Operating Expenses
AnalysisStable compared to 1Q07 lower
Provisions for Contingencies and Cost of Goods
Sold offset the increase in Provision for Bad
Debts
D4Q07
D1Q07
-3.2
-0.5
2.856
2.841
-0.5
Interconnection
Other Expenses
Bad Debt
Materials
Cost of goods sold
Personnel
Third-party Services, Marketing, Rent and
Insurance and Other Expenses
10
Financial Performance EBITDA MarginFavorable
performance in the quarter due to both fixed and
mobile services mobile maintained margin above
30
D4Q07
D1Q07
3.1
8.4
D4Q07
D1Q07
13.8
6.5
EBITDA Mg.
33.5
36.1
36.7
D4Q07
D1Q07
108.7
7.6
EBITDA Mg.
34.5
33.7
36.7
EBITDA Mg.
32.1
18.3
33.3
11
Financial Performance Debt and Financial
Expenses41 Net Debt reduction shows strong cash
flow generation cash represents 92 of the debt
outstanding due up to 2012
8,807
9,390
8,978
Swap
Foreign currency
National currency
Net Debt R million
-41.2
-6.9
Onwards
0.4
Net Debt/ EBITDA
0.5
0.8
12
Financial Performance Net Earnings, CAPEX and
Free Cash Flow

• Higher yoy results reflect better operational
  performance and profit use
• Net profit reduction in the quarter due to fiscal
  benefit of Interest on Equity observed in 4Q07

• Mix 1Q08 78.0 Fixed, 22.0 Mobile
• Fixed higher coverage and increase in the
  transmission capacity of Oi Velox
• Mobile Region III and expansion of voice/data
  client base

• Reduction in 12 months due to
• Higher investments and
• Fistel fee, which impacted 1Q08 and not 1Q07
  (paid in 2Q07)

13
(No Transcript)