Telefônica Brasil signs infrastructure sharing agreement with Winity

Press Release

By Telefônica Brasil

NOTICE TO THE MARKET 

Telefônica Brasil S.A. (“Company”), in the form and for the purpose of CVM Resolution No. 44/2021 (“CVM Resolution”), hereby informs its shareholders and the market in general that it has signed on this date, a set of contracts for the reciprocal sharing of telecommunications infrastructure elements with Winity II Telecom Ltda. and Winity S.A. (“Winity”). 

Through the referred instruments, as the case may be, (i) the Company rented from Winity, an independent operator of mobile network infrastructure acting in the wholesale market, the use of passive infrastructure to expand the coverage of mobile telephony services, that may reach 3,500 sites by the end of 2030; (ii) Winity leased to the Company a block of 5MHz + 5MHz of its 700MHz national radio frequency spectrum, to be used in approximately 1,100 Brazilian municipalities for up to 20 years; and (iii) Winity signed a roaming agreement with the Company, that may evolve to RAN Sharing depending on the traffic processed. 

The conclusion of the transaction is subject to certain suspensive conditions usually applicable to this type of operation and provided for in the contracts, among which the prior consent of ANATEL and approval by CADE, as applicable. 

Upon completion, this transaction will bring benefits to the Brazilian telecommunications market as a whole, due to the potential for enabling an innovative business model in the wholesale market, which will contribute to expand the quality and accessibility of the mobile service in the country. 

The Company will maintain its shareholders and the market in general duly informed on the evolution of the transaction, in compliance with CVM Resolution and applicable legislation. 

São Paulo, August 8, 2022. 

David Melcon Sanchez-Friera 

CFO and Investor Relations Officer Telefônica Brasil