This document provides an overview of Oi, a Brazilian telecommunications company. It discusses Oi's profile and results, as well as its future strategy. Specifically, it summarizes that: - Oi has businesses in fixed telephony, mobile, broadband, and pay-TV, with over 58 million subscribers across Brazil. - For its future strategy, Oi plans to focus on strengthening its convergent offer and presence in the low income segment. It will also look to expand nationally by leveraging its successful model from Region I. - Within three years, Oi aims to consolidate its national leadership in broadband coverage by expanding to cover 87% of cities and 77% of the population in Brazil.

1. CS Global Media & Communications
Convergence Conference
Pedro Ripper
Strategic Planning &New Business Director
June 10, 2009
Investor Relations Tele Norte Leste Participações S.A.

2. Agenda
Brazilian Telecommunications Market 2
Oi: Profile and Results 8
Expectations for the Future and Strategy 13
2

3. Brazil Snapshot
Brazil assumes increasing importance in the international economic environment
Brazil in Numbers
2009
• 10th economy in the world
• Declining interest rates, although still
one the highest worldwide
− Selic: 13.75% in December 2008;
10.25% current; 9.0% 2009E*
• Land Area
– 8.5 million Km2 (e.g: England=3% of • Inflation under control for more than a
Brazilian area)
decade
• Population
– 190 million inhabitants − CPI: 5.9% in 2008; 4.33% 2009E*
– 56 million households (85% urban)
• During the recent crisis, Brazil has been
• Economy
more resilient than main developed
– GDP: US$ 1.5 Trillion (2008)
– GDP per capita PPP: US$ 7.7 thousand countries in terms of economy growth
– Currency: US$ 1,00 = R$ 1.95 (May/09)
Source: ANATEL, IBGE, Teleco, ML Wireless, UNCTAD and Internet World Stats; *FOCUS Report – Brazilian Central Bank
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4. Brazilian Telecom Sector
Sector’s Evolution
09
03
Current Scenario
98  Focus on competition
Post-Privatization
 Consolidation
 Mature fixed; mobile
 Multiple players and broadband as
Pre-Privatization
 Focus on universal and growth drivers
quality of services  Convergence in early
 State-owned monopoly
 Expansion of fixed and stages
 Lack of investments mobile  Launch of 3G
 Low quality of services  GSM launch
 Huge pent-up demand in  Broadband start-up
fixed and mobile
 Incipient Internet
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5. Brazilian Telecom Sector
Performance of the Brazilian Market – Fixed and Mobile
Fixed Market Mobile Market
Million, Lines in Service Million, Mobile Users
CAGR06-08: 22.8%
153.7
150.6
121.0
CAGR06-08: 3.1% 99.9
38.8 38.8 39.4 41.3 41.9 34.9
Dec02 Dec06 Dec07 Dec08 Mar09 Dec02 Dec06 Dec07 Dec08 Mar09
• After being stable from 2002-06, the fixed market had a • Market has accelerated growth in 2008, but started 2009
slight growth in the past 2 years due to new entrants at a lower rhythm (22% in 1Q09 vs 23% in 1Q08).
(specially high-end and SMEs) • Net additions of 3.0 mn in 1Q09 are 37% below 1Q08
• Incumbents’ share losses to new entrants at significant due to the clean-up of subscribers base
lower pace as compared to developed markets • Naked sim card continues as national trend
• Penetration 51% of households
• Penetration 81% of inhabitants
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6. Brazilian Telecom Sector
Performance of the Brazilian Market – Broadband and Pay-TV
Broadband Market* Pay-TV Market
Million, Users ADSL Cable & Others Million, Users
3G Data Cards
CAGR06-08: 37.6% CAGR06-08: 17.0%
13.6
10.6 6.3 6.6
5.3
5.6 7.7 4.6
3.6
0.6
Dec02 Dec06 Dec07 Dec08 Mar09 Dec02 Dec06 Dec07 Dec08 Mar09
• Continuous expansion in 2008 (38%) • Strong pent-up demand (still of high cost service)
• 3G changes the industry’s dynamic: 3G data cards • Cable-TV accounts for 63% and DTH for 33% of
as major trigger for a new wave of growth in 1Q09 the acesses
• Fierce competition in areas that concentrate high-
end clients and falling ARPU
• Penetration of 18% of households (fixed broadband)
* Fixed broadband offered by 6 ADSL, 2 main cable, 1 main DTH, 11 major radio and other smaller providers. Mobile broadband offered by
the 4 major mobile players ; ** Pay-TV is offered by 7 major providers in Brazil and other smaller companies. 6
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7. Competition: Main Telecom Groups in Brazil
Market Share of Wireline and Wireless Subscribers and Revenues – March 2009
New Oi* Spanish Group*
Full Integrated Telefonica Vivo (JV TEF+PT)
National
National Revenues market-share
March/09
• New Oi (Oi + BrT)
52% 21%
28%
Region III − 33%
30%
• Telefónica + Vivo
− 29%
Mexican Group TIM
• Claro + Net + Embratel
Embratel (Telmex) Claro (Am. Moviles) (Mobile only)
− 24%
• TIM: 12%
• Others: 2%
National
Region IV National
14% 26% 23%
National Market Share - Fixed Lines in Service National Market Share - Mobile Users
* Also operates Long Distance and Data Transmission Nationally Investor Relations | 7

8. Agenda
Brazilian Telecommunications Market 2
Oi: Profile and Results 6
Expectations for the Future and Strategy 13
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9. Businesses and Domestic Footprint
The New Company: Businesses and Subscribers
Millions; March/09
Domestic Coverage Fixed Mobile Broadband Pay-TV Other businesses
1º 1º 1º • Pioneer in m-
payment
Belo Globenet
Horizonte
4º • 22,000 km of
1º 1º Uberlândia submarine cable
linking Brazil,
Poços de
Venezuela,
Caldas Barbacena
Bermuda and USA
Total 21.8 31.8 3.9
ISP/Portal
share Brazil • 52% • 21% • 38%* • 4 cities (cable) • Largest Brazilian
• Future national ISP
• 4.8 th. • 2.3 th. • 1.9 th. DTH operations
Cities*
• 58 million clients (RGUs)
• 28% of total clients in Brazil
• Higher group in revenues, with 33% of all revenues in the sector
Source: Anatel and Companies;
* December/2008
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10. Oi - Operating Highlights
Revenue Generating Units
Revenue Generating Units (Million)
Total RGUs Broadband
Million, Users
Mobile Broadband Fixed  14.7% of Fixed Lines in Service in Region I and
23.1% in Region II
 Focus of investments, mainly in Region I, where the
57.7 numbers of cities covered accounts for just 14% of
55.9 total (versus 80% in Region II)
0.06* 0.06*
45.6
41.7
Mobile Mix
Million, Users 31.8
30.0
20.3
16.5
Pre-paid
Post-paid
2006 2007 2008 1Q09
2006 2007 2008 1Q09
* Oi TV clients (Video) Investor Relations | 10

11. Oi - Financial Highlights:
Consolidated Gross Revenue and EBITDA (R$ billion)
Consolidated Gross Revenues Consolidated EBITDA – Oi (TNE)
R$ million R$ Million; Margin %
Fixed Mobile
Non-recurring items
∆1Q0 Non Recurring items in 1Q09:
Recurring EBITDA Margin
8 • Consultancy firms expenses
related to BrT operation
11,242 7.8%
10,431 2,377 • End of subsidies deferral to
28.4% retail post-paid handsets
(related to end of the fine**)
• Integration with BrT
Non Comparable items in 1Q09
vs 1Q08:
3.6% • Start-up in São Paulo and
acquisition of Amazônia Celular
• Standardization of Oi’s and BrT’s
1Q08 1Q09 Rec. accounting practices
35.7% 31.7%
1Q08 1Q09
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12. Oi – Financial Highlights
Consolidated CAPEX and Debt
Revenue Generating Units (Million) Consolidated Gross Debt
Consolidated CAPEX
R$ Billion Local Currency Foreign Currency
Million, Users
Mobile Fixed
Hedge
25.9
• Foreign exchange
20.5
exposure: 2.2%
7.3
• Effective cost of
9.0 debt: 11.65%
(97% of CDI)
• 12.1% of 1Q09 Mar/08 Dec/08 Mar/09
3.8 3.7
net revenue (vs
11.2% in 1Q08) Consolidated Net Debt
R$ Billion
0.8 0.9 • Net Debt/adjusted
EBITDA: 1.9x
2006 2007 2008 1Q08 1Q09
Mar/08 Dec/08 Mar/09
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13. Agenda
Brazilian Telecommunications Market 2
Oi: Profile and Results 6
Expectations for the Future and Strategy 13
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14. Oi’s Recent Evolution and Strategy
In the last 10 years Oi has faced important challenges and focused on its incumbent
Region to sustain its growth
Key points
Competition increasing and
consolidation
04 • Customer segmentation
New businesses and
competition • Fast growth and network
expansion of
– Mobile
02 – Broadband
Integration and • Launch of new services
• Service convergence
obligations – Mobile
• New services
– Long distance
– Pay TV
– Broadband
– Mobile payment
99 – ISP
• Integration of regional • M&As and consolidation
• Counter attack against
operations
new entrants
• Fixed network
expansion to fulfill
regulatory obligations
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15. Future scenario
The short and long term market evolution bring some challenges
Short term Long term
• Continuation of main trends • Increase of Internet penetration
Market - Consolidation • Mobile reaching maturity with increased
- Slight reduction in fixed lines VAS relevance
- Mobile and broadband as growth drivers • Increase of Pay TV penetration
• Fixed companies launching DTH services
• Triple Play ›› Quadruple Play
• Strong competition in mobility (traffic) with • More competition in broadband with 3G/4G
Competition
portability and 3G and WiMax
• 3G becomes an alternative access for • New competition with alternatives ways of
broadband retail access
• Incumbents permitted to provide IPTV • Auction for 4G frequency bands
Regulation
broadcasting and/or to buy cable companies
• Regulation of new pro competitive actions
through approval of:
(PGR)
- PL #29 and/or
• Mobile Interconnection Rates based on cost
- New auction for cable licenses
models (VU-M)
• Auction for WiMax frequency bands
• Next Generation Networks (NGN)
Technology • WiMax as possible access solution
• FTTX access becomes significant
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16. Strategy
To face the future scenario and the limited outlook for long-term expansion,
Oi decided to analyze the adoption of new growth levers
Y International
H
P
A New Growth levers
R Brazil
G 3
EO
markets
G Region I • Increase market share
Share • Increase ARPU
New
Higher 1 • New services and
services
income
ARPU business
CLIENTS
• Include new clients
2
• Geographical expansion
New
clients
Lower Growth strategies
income
• Organic growth
Telecom Related to Other
telecom business • Mergers and acquisitions
SERVICES
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17. Strategy
Oi decided to focus on strengthening its convergent offer and on its strong
presence at the low income segment
Include new • Differentiation as the only player with integrated and
services in a convergent services
1 convergent
• Launch of new services to strengthen Oi’s convergent
portfolio
position (e.g. Pay TV)
Include new • Differentiation with innovative strategy for the low
clients with focus income segment
2 on low income
• Creation of new business models (e.g. no handset
segment
subsidies with sale of standalone chips)
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|

18. Strategy 2 3
The company adopted an aggressive strategy at the low income segment that now
represents a growth opportunity in the expansion to the other two Brazilian regions
Pre-paid Pre-paid customer base Post-paid
Index, 100 = Jan/07, Brazil
Oi
Current
•Bundles for premium
strategy Others
•No handset subsidies: SIM customers
card-only with free on net •Discount in services or
and fixed to mobile calls credit instead of handset
subsidies
•Broaden pre-paid
•Fixed-Mobile convergent
recharge base through
offering for the corporate
allowing recharges of R$1 Jan/07 Set/08
•Region II •Region III •Corporate
Growth – Pre-paid: leverage base through – Focus on pre-paid though – Leverage presence
opportunitie the successful model of Region I aggressive offerings with the national
s – Post-paid: broaden convergent – Bundles with national long coverage and
offerings distance convergence
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19. Strategy 1
In three years, Oi will consolidate its national leadership in the coverage of broadband
services
Oi’s fixed broadband
coverage
2007 2008 2009 2010/2011
Covered
cities
% RI+RII
# (thou) = 87%
of Brazil
Population
(% Regions = 77%
I and II) of Brazil
GDP
(% Regions
I and II)
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20. Strategy 1
Oi continued its expansion to new businesses with the acquisition of Way TV and the
future launch of Satellite Pay TV services is an important market opportunity
Oi´s movements in the Pay TV market Market profile
Households per social With Without
 Acquisition of Way TV in 2006 pay TV pay TV
economic segment
allowed Oi to become the first
quadruple-play company in Brasil Million households
(four cities)
– Oi has developed expertise in the
cable TV business (marketing, sales, A
operations, economics) 63% 0,5 MM
1,3
 The launch of Oi’s satellite pay TV services B
24% 6,8 MM
focusing B/C segments in 2009 it is an
8,9
opportunity to
– Exploit a large customer base that is not C
covered by the current players with a 6% 15,2 MM
16,2
suitable offer
– Fulfill Oi’s convergence portfolio gaps D
1% 7,7 MM
– Get scale to support the satrtegy of cost 7,8
leadership
– Develop operational expertise
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21. Strategy 1
Internet and mobile payment are others key elements in this expansion to new
business
Internet business Mobile payment
 First and innovative mobile payment
 Leader in broadband and dial up ISP
plataform in Brazil
Services (market share of 35% and 68%)
– Strong synergies with Oi mobile
 Vice-leader in the national portal
Business business (data services platform,
business (audience only 8% lower than
profile credit information, relationship)
the national portal leader
– High upside potential related to
credit card/electronic payment market
dynamics
 Become the national leader monetizing  Exploit synergies with telco and other
its audience and leveraging sinergies with businesses
Challenges other businesses  Exploit new payment opportunities
and  Leverage new services such as online  Operational focus on selected markets
strategy music and multiplatform advertising
 Focus on partnerships to increase the
 Fulfill current gaps through partnerships
acceptance and customer base
and M&A opportunities
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22. Strategy 3
Integration of BrT is a key point in the company strategy of expanding to new
regions besides increasing operational and financial efficiency
Synergies Expectations 2009E
• Establishment of a national company from
two regional companies, which rapidly 3.0% of consolidated
Synergies
captures potential synergies ~R$600 mn
operating costs/expenses
– Integration of the two companies
R$ 5 to 6
started since day zero CAPEX Reduction
billion
– Management structure has already been
defined Oi Fixed Slight reduction ~ 21.0 mn
• Prioritize the identification of quick-
wins based on the best practices of each Oi Velox Growth, especially in
4.5 million
company (Broadband) Region I
Market
Growth, especially in
• Reinforce the strategy of differentiation Oi Mobile 39 million
Regions II and III
through convergence in a segmented
manner
Net Debt/
Reduction 2.0x
• Portfolio integration and single brand EBITDA
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23. Thank You !
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