| Brazilian fixed {{U}}(19)
{{/U}} operator Brasil Telecom is betting that its newly {{U}}(20)
{{/U}} Brt GSM mobile arm will obtain a high degree of customer
{{U}}(21) {{/U}} and maintain a chum rate of less than 12%, half the
industry average, company executives told press on Tuesday. Brasil Telecom GSM
is launching a {{U}}(22) {{/U}} strategy, known as Pula-Pula, which
{{U}}(23) {{/U}} every other month of service free until 2010 to the
first 400,000 customers. "The {{U}}(24) {{/U}} approach of Pula Pula will {{U}}(25) {{/U}} us to customer loyalty," Brt GSM general director Ricardo Sacramento said. The company {{U}}(26) {{/U}} 500,000 users by year-end 2004, which is higher than the company's {{U}}(27) {{/U}} estimate of 400,000, and 1.7 million users by year-end 2005. "We have two {{U}}(28) {{/U}} in Brasilia and Rio Grande do Sul, but other states in the mid-west will give good results. We have {{U}}(29) {{/U}} expectations," Sacramento said. The company invested US $ 350mn in its mobile {{U}}(30) {{/U}} in 2004 but has not yet {{U}}(31) {{/U}} the amount of expected investment during 2005. "Considering that we will have 82% {{U}}(32) {{/U}} of our service area by year-end 2004, the investment will be minimal and will be based on how the market {{U}}(33) {{/U}}," Brasil Telecom president Carla Cico told reporters. Brasil Telecom expects a 2%-2.5% reduction of Ebidta margin in the first 12 months of launching their mobile service but expects the mobile unit to post positive Ebitda within 18-20 months of start-up. |