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Monday, February 25, 2013

Telefonica Brasil invests more to fight broadband rivals, (NYSE: VIV)

Brazilian phone company Telefonica Brasil SA plans to increase investments this year in an attempt to boost broadband speeds as fixed-line revenue suffers from rising competition.The Brazilian unit of Spain's Telefonica is budgeting an 11 percent to 12 percent rise in capital spending in 2013 from last year, Controller Cristiane Barretto Sales told analysts on Monday during a call to discuss earnings."We are not happy with our general performance in the fixed business, mainly in TV and broadband. We are in the process of implementing a strong tactical plan to turn around this business," said senior executive Paulo Cesar Teixeira.The need for rising investments reflects the increasingly crowded Brazilian telecom market, where a sharp slowdown has toughened the fight for the highest spending subscribers.

Telefonica Brasil SA, formerly Telecomunicacoes de Sao Paulo SA - Telesp, is a Brazil-based company engaged in the telecommunications sector. Shares of VIV traded higher by 4.34% or $1.06/share to $25.49. In the past year, the shares have traded as low as $21.03 and as high as $31.32. On average, 1264570 shares of VIV exchange hands on a given day and today's volume is recorded at 623775.