Ttulo do Documento

1
Conference Call Presentation 3rd Quarter 2008
Earnings
2
Operational Performance Oi Customer BaseOi
registered new net additions record in the
quarter, adding 1.7 million new users
Oi Fixed million
D2Q08
D3Q07
0.1
-2.9
7.2 (23.3)
3Q07
2Q08
3Q08
37.8
Oi Mobile million
20.3
D2Q08
D3Q07
30.6
7.7
46.8
3Q07
2Q08
3Q08
Oi Velox million
D2Q08
D3Q07
Oi Fixed
Oi Velox
Oi Mobile
6.3
37.7
3Q07
2Q08
3Q08
Including Cable BB (Oi TV)
3
Operational Performance Mobile MarketOi Mobile
maintained fast-paced growth, increasing Region I
leadership with 37.5 net adds in the quarter
D3Q07
D2Q08
66
408
234
133
307
14.9
20.3
21.9
Total
7.7
46.8
7.4
47.4
(43)
2Q08
1Q08
4Q07
3Q07
3Q08
Pre-Paid
9.5
43.6
Post-Paid
Market share RI

• Region I Growth (3Q08)
• - 6.3 (Brazil 5.7)
• Region I Penetration
• - 67.4 (Brazil 73.3)

Considering Amazônia Celular customer base
(TNCP) .
4
Financial Performance Consolidated Revenue
AnalysisWireless revenues rose 46 year-on-year,
and once again were the main driver for
consolidated gross revenue growth
Consolidated gross revenue
Gross Revenue TNE Consolidated
Fixed Gross Revenue TNE Consolidated
R million
R million
1.1
9.3
82
76
Mobile Gross Revenue - TNE Consolidated
46.3
R million
24
18
5
Financial Performance Fixed Revenue Analysis
In wireline services, data, network usage and
long distance offset lower revenues from local
services and public phones

• Increase in revenues higher traffic tariff
  readjustment

5,182
3Q07
Fixed-Mobile
Data

• Tariff readjustment in July 2008 (2.76) did not
  offset lower traffic

LD (ex VC2/3)
1.1
Network Usage
Others
Local Services

• Negative impact traffic migration from public
  phones to mobile (pre-paid)

Public Phone
Public Phones
3Q08
5,238
VC-1VC-2 and VC-3 Additional services and
advanced voice/others Subscription, Local
Traffic and Other Local Service Revenues.
6
Financial Performance Mobile Revenue
AnalysisHigher average customer base influenced
service revenues whereas handset revenues
decreased as a result of naked sim-card strategy
Mobile Revenue TNE R million

• Higher revenues from subscription increase of
  the post-paid user base, especially Oi Conta
  Total
• Higher average customer base, mainly in pre-paid,
  pushed originated calls and data revenues
• Greater VAS revenues due to higher numbers of SMS
  and "ligadores" renewals

1,156
3Q07
TNCP
Services (ex network usage)
35.6

• Higher traffic due to the increase in average
  customers base, especially pre-paid

Network Usage
46.3
16
Handsets
3Q08
1,691
7
Financial Performance Operating Expenses
AnalysisExcluding non-recurring items in 3Q07
and non-comparable items in 3Q08, interconnection
and third-party services were main drivers for
higher costs
Non-comparable
28
3,133
2,758
2,529
3Q07
3Q07
Third-party services
3Q08
Others
SP
COGS
TNCP
Non-recurring
Recurring
BrT
Personnel
Material
Interconnection

• BrT R 23 million related with consultancies
  (financial and legal counsel) expenses
• SP R 42 million related to pre-launch marketing
  campaign
• TNCP R80 million of expenses relates to this
  company

• Negative
• 3rd party services plant maintenance and higher
  commission
• Bad-Debt More flexible credit policy since 2Q07
• Rent and Insurance Higher expenses related with
  TNCP and other rent
• Positive
• Handset costs and others COGS and materials

Bad Debt, Rent and insurance, marketing and
other expenses
8
Financial Performance EBITDA AnalysisExcluding
the one-time-effect of previous quarter, EBITDA
decreased slightly by 1.5
D2Q08
D3Q07
Recurring
-4.0
-2.1
D2Q08
D3Q07
1,914
1,655
1,620
Recurring
-3.6
-1.5
1,908
1,644
1,619
Recurring EBITDA Mg.
D2Q08
D3Q07
26.6
3.5
34.1
Recurring EBITDA Mg.
Recurring EBITDA Mg.
34.6
33.2
9
Financial Performance Debt and Financial
ExpensesNet debt grew in 3Q08, mainly reflecting
the acquisition of BRT preferred shares and TNCP,
and 2G licenses payments
R295mn of negative FX impact in 3Q08 (vs -R50
mn no 3Q07 and R72 mn in 2Q08)
535
10
Financial Performance CAPEX

• Mix 3Q08
• - 42 Fixed
• - 58 Mobile
• 3Q08 Main Impacts
• São Paulo 2G Licenses R127 million
• CAPEX São Paulo (ex-licenses) R203 million
• Portability R 138 million
• 3G Region I R 55 million

11
Financial Performance Net Earnings and Free Cash
Flow

• EBITDA increased by R308 million
• Negative effect on the financial expense (R508
  million)
• Lower provision for income tax and social
  contribution reduction in the accounting profit
  before income tax and social contribution
  fiscal impact of IOC payment

12
São Paulo Start-UpPre-operational campaign
success, reaching more than 1 million clients in
21 days
Varejo
Corporate
Retail
Your company follows you, you follow your business
Try Oi for free during 3 months
Daily R20 bonus in the control product
To divide minutes and sum advantages
1250 minutes and up to R650 discount on
post-paid bills
Controlling your expenses became even more simple
Limited to a daily bonus of R20 on-net or Oi
to fixed
13
(No Transcript)