In August of 2010, Acision commissioned independent market research agency, Quanti, to undertake a detailed survey to understand consumer perceptions of mobile broadband in Brazil. The research covered key aspects associated to mobile broadband today, including insight in Mobile broadband usage and Quality of Experience. The research in Brazil forms part of a global research initiative that Acision has undertaken in the United Kingdom, the US, Australia and Singapore. For every region, the Acision research focuses on all aspects of mobile broadband including the usage of the mobile internet on Smartphones, mobile handsets, dongles, modem sticks, data cards, netbooks, and integrated mobile broadband within laptops. The motivation for Acision to undertake this global research has been the phenomenal uptake of mobile broadband worldwide and the rumoured Quality of Experience issues accompanying it's steady rise. One of the key objectives of the research has been to quantify these QoE issues, understand it's principle drivers and determine whether global parallels exist in its development lifecycle. Also, the potential for addressing the key issues in terms of consumer awareness of mobile broadband and willingness to accept fairness, optimisation and differentiation measures, has been another key objective. In both areas we can conclude the global research initiative has been very successful and provides insight in this new and exciting market segment which is beneficial to all stakeholders, being consumers, operators, content providers and regulators. In this report we have dedicated a section on how Brazil can prepare for growth in Mobile broadband subscriber uptake and usage. Comparing the research results from Brazil with those from mature Mobile broadband markets, like the US and the UK, provides useful insight for Brazilian operators on fairness principles, how to deal with video, and ways to differentiate the Mobile broadband offer. The research in The US, UK, Australia and Singapore, which is also referenced in this report, had been conducted by YouGov and Toluna. Separate reports for each of these countries are available as well.

1. © 2011 Acision BV. All rights reserved Mobile Broadband, Quality of Life & Marketplace Virtualization Rafael Steinhauser President Acision Latin America DLD – Rio de Janiero, April 26th, 2011

2. Broadband as economic growth engine Brazil GDP per capita, 2011 = U$5,300 Broadband penetration: 20% (38,5M of users (14M fixed + 24M Mobile) Broadband connections growth 2011= 51,5% – Mobile broadband growth 77,7%

3. For every 10% increase in broadband penetration, it is estimated that GDP might grow by ~1.4 pp Source: World Bank

4. Broadband significance in today’s life... Source: World Bank

6. Low interest loans for investment in network rollout

7. Incentives for network sharing practices (aiming at lowering costs of broadband network deployment)

8. Special broadband usage awareness & education programs

9. Subsidized services for poor citizens

10. Tax incentives in computer sales

11. Bundling and spectrum usage regulation ease

12. Government and public info online + creation of e-government and other e-applications (such as for health, education, and agriculture)Source: World Bank

13. Mobile Communications significance… Nowadays 30 years ago 15 years ago Mobile Technology Analog Digital IP Voice Services Voice + Data Voice + Data + BB Voice Connectivity Celco Business Voice + Data Connectivity Connectivity + Virtual Marketplace

14. …through so-called ‘Global Virtual Marketplaces’ Source: Telefonica

15. Seizing the opportunity in Mobile Broadband © 2011 Acision BV. All rights reserved

17. FUP

18. Fixed price

20. Data caps

21. Tiering

22. Transaction pricing

23. Content mediationTRAFFIC VOLUME Pricing is the trigger Usability is the prerequisite HSDPA HSDPA+ EDGE GPRS CSD LTE LTE-A ? 2012 2016 2014 2002 2000 2004 2008 2010 CUSTOMER PENETRATION © 2010 Acision BV. All rights reserved Slide Number:9

24. CUSTOMERT SATISFACTION TRAFFIC VOLUME CSD GPRS EDGE HSDPA HSDPA+ LTE LTE+ ? 2012 2016 2014 2002 2000 2004 2008 2010 CUSTOMER PENETRATION Lookingaheadon the curve

25. Mobile-only internet very high in Brazil Slide Number:11 Mobile only use and combined use Mobile only access to internet is much higher in Brazil as an alternative for fixed access Mobile broadband is therefore the only internet experience for many people and there is less fixed line comparison Source: Quantinet/YouGov/Acision, 2010

26. Enormous untapped potential in Brazil Slide Number:12 Perception of non-mobile internet consumers 66% of consumers (44 million) with access do not use mobile internet 6.1 million (14%) consumers are considering the service now 7.3 million (16%) are simply unaware of the advantages or services Source: Sept 2010 Quantinet research commissioned by Acision N=1506

27. Key takeaways from our research Slide Number:13 Major opportunities exist today with over 6 million consumers ready to start using mobile broadband now Pricing is a probable inhibitor for growth and seen as a key dissatisfier for 55% of Brazilians Relatively comparable satisfaction levels compared to the US and UK, but moving forward Brazilian operators should deploy key capabilities to manage QoE levels in an exponential growth situation