Telecom operator Oi today said its Q2 2014 Capex dipped 13.3 percent to R$ 1,676 million.
Capex in Brazil decreased 8.4 percent to R$ 1,380 million, while Capex in Portuguese telecom business declined 31.9 percent to R$ 236 million.
In Brazil, Oi invested in its network with a granular approach. Oi is seeking to share telecom infrastructure investments with its rivals.
Oi said 74.5 percent of Capex in Brazil was targeted at the network, including improving the quality and coverage of 3G and 4G; the infrastructure for the supply of IT and communication services to the FIFA World Cup; investment in improving the quality and speeds of broadband access, and investments in infrastructure and in customer equipment related to rollout the TV service.
The telecom operator said it lowered investment in IT / IS projects, following the IP transformation and consolidation of IP applications. Oi has also decreased Capex in infrastructure and technology related investments. Earlier, Oi invested in both 4G and FTTH projects.
Oi said its net revenues rose 0.4 percent to R$ 9,024 million, benefitting from the appreciation of the Euro against the Brazilian Real.
Revenues of the Brazilian businesses declined 2 percent to R$ 6,935 million.
Reduction of network usage revenues, lower fixed voice revenues mainly due to lower customer gross additions and decline in fixed-to-mobile tariffs and lower voice and data traffic volumes impacted by fewer working days in June were the primary reasons for dip in revenue in Brazil.
Oi said revenues of the Portuguese telecom increased 9.5 percent to R$ 1,853 million.
Other businesses, which include primarily the African assets, increased 5.6 percent to R$ 236 million.
Oi’s 3G coverage has reached 937 municipalities, equivalent to 77 percent of the country’s urban population, an increase of 8 percent, or 67 municipalities, over 2Q13.
Oi continues to invest in improving its 3G coverage and capacity to continue to respond to the demands of growing data usage and volumes and capture the opportunity of revenue growth in the mobile data segment.
Oi is already offering the 4G LTE data package in 45 municipalities including the 12 cities that hosted the FIFA’s World Cup.