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Seeweekly news
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2005-11-23 |
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NETC Announces Telecommunication Service Agreement With Embratel |
Net Servicos de Comunicacao S.A., the largest Pay-TV multi-service operator in Latin America and an important provider of bi-directional broadband Internet access (Virtua), announces that NET and Empresa Brasileira de Telecomunicacoes S.A. - Embratel entered, at this date, into a telecommunication service agreement that enables Embratel to render telecommunication services through NET's cable network. This agreement is important to strengthen and consolidate the Company's broadband platform, which will be able to offer telecommunication services to its subscribers, through this partnership with Embratel.
The referred agreement is in line with the Company's business strategy, already presented to the market, of offering triple play (video, broadband and voice) through its cable network without losing the focus on video and broadband. Under this strategy, NET entered into a long-term agreement with a telephone company, which will be responsible for voiceover IP service's delivery and necessary investments. NET will minimize implementation and delivery risks in a new market and, at the same time, increase the utilization and profitability of the existing infrastructure. Also, with triple play, the Company increases subscriber loyalty, since clients now have an integrated service solution through only one infrastructure.
The amount that NET will receive from Embratel, covers the capex in infrastructure made by the Company and is compatible with the price of similar services practiced in other markets. Additionally, Embratel will handle any other operating costs necessary for the rendering of this service.
On this date, NET also signed the Optical Fiber Lease Agreement, which consists of the lease of NET's dark fiber (unused optical fiber) to Embratel, generating additional revenue for the Company, adequate to the market's reality.
The agreements announced herein, which are material facts, were approved by the Company's Board of Directors. |
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