Products and Services

Fixed-Line Phone Services

Local calls, domestic and international long-distance phone cal ls (with Carrier Selection Code 12), public and VoIP (Voice ove r Internet Protocol) phone services.

Mobile Phone Services

Pre-paid, post-paid and third generation (3G) plans, with video call and internet access services.

Broadband

(Type I and Type II) ADSL, HFC and GPON (Gigabit Passive Optical Network) access, with maximum speed of 1 Gb per second, and 3G mobile broadband services, with capacity to transmit data at up to 100 Mbps through HFC (hybrid fiber optic and coaxial cables), and GPON networks.

Data Communication

High-speed data communication services intended to the corporat e market, which are provided through a modern IP network.

Pay-TV

This service provides access to over 170 channels, including 44 in HDTV resolution, which began to be marketed in late 2012. The plans offered can be either via satellite, covering 115 municipalities at the close of 2012, or via cable, comprising a network of 930 km in length, in the cities of Araguari and Uberlândia, Minas Gerais State.

Operating areas

In the concession area, where it has been operating since 1954, Algar Telecom caters for both the residential and corporate markets of 87 municipalities in the states of Minas Gerais, São Paulo, Goiás and Mato Grosso do Sul – a region that consists of 2.9 million inhabitants and per-capita consumption 16.5% above the country's average statistics. Its service portfolio comprises fixed and mobile telephony services, broadband internet access, data communication, internet provider, pay-TV (DTH and cable), in addition to code 12 operator for long-distance and international calls.

Since 2003, Algar Telecom has also held an authorization by ANATEL to provide fixed and voice telephony throughout Brazil. In this segment, the mainly target market is the corporate one. At present, the Company is present in 70 municipalities in the states of São Paulo, Rio de Janeiro, Minas Gerais, Goiás, Paraná and the Federal District, providing solutions of fixed telephony and data communication.

The Company's third niche of operations is called "Expansão Minas" (Minas Expansion), whose focus consists in the residential market of the Band H, a frequency range for 3G telecom services that the company acquired at an auction two years ago. Since the end of 2011, Algar Telecom markets packages that combine services of broadband internet, pay-TV, mobile 3G telephony and fixedline phone services to nineteen cities (from a total number of 233 allowed).

Infrastructure

Algar Telecom's backbone comprises a long-distance circular optic fiber network, of 12,000 km in length, which extends across the main cities of the states of Goiás, Minas Gerais, Rio de Janeiro, São Paulo and Paraná, in addition to Brasília, in the Federal District. The Southeast Region, in which most of the network is, accounts for 55% of the country's GDP. Since 2010, the Company has had an international Point of Presence (POP) at the NAP of the Americas, appointed to connect Brazil to the rest of the world.

Algar Telecom complies with the local, state and federal legislation governing the construction and implementation of antennas by consulting with ANATEL, COMAR (the Regional Air Command), as well as with other competent bodies. On the grounds of sustainability, the Company prioritizes the adaptation of the structures it already has, in addition to sharing antennas with other companies. The Company's inventory comprises all its physical structures, such as antennas, towers and buildings, taking into account which are shared with other carriers and/or installations (leases). At the close of 2012, 34% of the total number of 1,629 physical structures were shared.

Business Process Outsourcing and IT

Algar Tecnologia

In the corporate market since 1998, Algar Tecnologia provides technology solutions for business processes. At the close of 2012, the company held a headcount of over 10,000 associates, alongside a diversified client portfolio consisting of nearly 190 clients from distinct industries, such as health care, financial, education, manufacturing, utility, media and entertainment industries, as well as the government. Algar Telecom, its partner and also its main client, accounted for 9% of the overall client base.

The service portfolio of Algar Tecnologia can be breakdown into four areas of expertise:

Information technology (IT) infrastructure

Services intended to yield gains in productivity, coupled with the maximization of the cost-effective IT solutions considering clients' business performance. To that end, the company holds three data centers strategically located: two in Uberlândia (Minas Gerais State) and one in Campinas (São Paulo State), which are interconnected by a fiber optic network and covers the whole country and abroad. In 2012, in preparation to meet the ever-increasing demand, the facilities that encompass the Campinas data center was expanded by over 1,000 square meters, equivalent to a 30% rise in the total area.

Services Management

The Company provides support and management of IT & Telecom services. Experienced professionals specializing in the main technologies and market practices concentrate their efforts to provide more security to the clients' operations and to certify that the IT functions be available for all users in the organization.

Business application

Considering the expertise and a professional team that is avowed by the major market players, Algar Tecnologia offers business applications with comprehensive solutions. Either through the company's own software plants or the strategic partnerships with major software manufacturers on the market, the service encompasses the development and upholding of the solutions that are suitable to each client's business profile. The company's methodology is based on cutting-edge software engineering, project management and most accepted maturity models.

Relationship with clients

Algar Tecnologia employs quality solutions aimed at ensuring the companies to take care of one of their main assets: their clients. Its team makes use of advanced support technologies and the best market practices to enhance its relationship with the clients, by means of contact centers and the internet. The company currently has nearly 7,500 work posts to perform customer care services, credit risk management, telemarketing sales, business back office and client experience management.

Complementary Businesses

Engeset – Telecommunication Engineering

Engeset has expertise in comprehensive IT and telecom infrastructure solutions, which comprise consulting services, project development, as well as network installation and maintenance. Since the company was founded in 1991, it has already installed over 20,000 km of fiber optic grids and is currently in charge of the maintenance services of 23,000 km in length.

Although Engeset plays a strategic role as concerns Algar Telecom's development, it has an ongoing expanding addressable market. Currently, its diversified client base is served by highly skilled professionals, based in 23 business units spread across the country, including the cities of São Paulo, Rio de Janeiro, Belo Horizonte, Salvador, Campinas, Recife, Fortaleza, Brasília, Macaé, Goiânia, Curitiba, Porto Alegre, Uberlândia, Uberaba and Franca.

Algar Mídia

In the market for over four decades, Algar Mídia is a transmedia company that offers solutions for interaction between its clients, chiefly small and medium-sized companies, and the public in general by means of different information platforms, which can be breakdown into three segments:

Updating media

This group includes Correio de Uberlândia, a newspaper founded in 1938, with an average distribution of 12,000 copies and a measured readership of about 50,000 people/day, in addition to the derivative products: an online version with an average of 30,000 single visits a day, plus the magazines accompanying the copies throughout the whole year.

Consultation media

The company's core business, this segment comprises the phone directory Sabe, with an annual distribution of 1,250 million copies, the guides Sei, Viver and Netsabe (an online search engine with the contents of the directory and guides). This products are delivered to nearly 250 municipalities located in the states of Minas Gerais, São Paulo and Goiás.

Exposure media

This is the company's most recent business. It started up in 2011 to meet the further demand for digital solutions, and shows a significant growth potential in upcoming years. Available in the same cities as the consultation media segment, digital Out-of- Home consists of offline tools (voice) and online tools (information screens) installed in busy areas, such as supermarkets, bus terminals, gyms, clinics and hospitals. At the close of 2012, Rede Alooh held 640 digital screens and, including offline services, reached approximately 4.5 million people/day.

A few stages of the operations carried out by Algar Mídia are outsourced, such as the printing (phone directories and guides), as well as the delivery of products (Correio de Uberlândia newspaper, printed directories and guides), in addition to software and platforms of digital Out-of-Home medium and internet.