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Telefonica Brasil S.A.

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Telefonica Brasil has underperformed the industry in the past three months on an average. The company continues to suffer from losses in fixed line voice business which has reached a saturation level. Moreover, the business is facing intensifying competition from alternative service offerings like wireless telephony, VoIP and cable services. At the end of first-quarter 2018, fixed voice access lines were down 4% year over year to 13.7 million, due to fixed-to-mobile substitution and voice-to-data migration. Stiff price competition within the mobile business also remains a cause of concern for the company. Impact of wireless substitution remains high as a growing number of customers are taking advantage of discounted calling rate offers from national wireless operators. However, Telefonica Brasil continues to invest in technology upgrades and broadband network infrastructure expansion to retain competitiveness in a rapidly changing market.

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