Report
Soomit Datta

New Street: Oi - Infra Story Getting Priced in

Following the new Plan release by Oi a couple of weeks back - and calls with Brazilian management teams last week (see C-suite Tour) - we’ve come at Oi afresh and remodelled on a pro-forma basis.
Underlyings
Oi S.A. ON

Telecomunicacoes de Sao Paulo S/A ADS

Telefonica Brasil S.A.

Telefonica Brasil SA Pfd

Telefonica Brasil is a holding company. Through its subsidiaries and associated companies, Co. is engaged throughout Brazil in rendering Fixed Switched Telephone Service Concession Arrangement ("STFC"); Multimedia Communication Service ("SCM", data communication, including broadband internet); Personal Mobile Service ("SMP"); and Conditioned Access Service ("SEAC" - Pay TV) by means of DTH (a satellite technology), IPTV and cable technologies. Co.'s broadband accesses with speeds higher than 34 Mbps in the state of SAPSo Paulo. Co.'s commercial distribution network (marketed under the Vivo brand), as of Dec 31 2017, consisted of 295 own sales outlets throughout Brazil.

TIM SA (Brazil)

TIM Participacoes is holding company. Through its subsidiaries in various telecommunications markets throughout Brazil, Co. operates mobile, fixed and long distance telephony, data transmission and ultra-broadband (speeds of more than 34 MB per second, or Mbps) services. Co. offers extensive data coverage throughout Brazil, with Co.'s general packet radio services technology, or GPRS, covering 100% of Co.'s coverage area and Co.'s EDGE technology reached almost 95% of Co.'s coverage area, in addition to Co.'s 3G and 4G network covering approximately 89% and 74%, respectively, of the urban population of Brazil.

Provider
New Street Research
New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Analysts
Soomit Datta

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