Brasil Telecom S.A.
IT Sales Opportunities - 2008
Co mpa ny - 2 0 0 8
Br as il T el ec o m S. A . - 2 0 0 8
Table of Contents
1. Company Overvi ew ........................................................................ 4
1.1 Bu sin ess Overview ................................................................... 4
1.2 K ey Figu res ............................................................................ 4
1.3 Corporate Headqu arters ............................................................ 4
2. IT Spending and Depl oymen ts ......................................................... 5
3. IT Sal es Opportunities ................................................................... 7
3.1 IT Sales Opportuniti es - Software ............................................... 8
3.2 IT Sales Opportuniti es - Hardware ............................................. 10
3.3 IT Sales Opportuniti es - Services ............................................... 12
4. Sal es Drivers .............................................................................. 14
4.1 Customer Service ................................................................... 14
4.2 Customiz ed & Person alized Off erings .......................................... 15
4.3 Employee Productivity & Compen sation Management ...................... 15
4.4 Growth from Con vergen ce ........................................................ 16
4.5 Growth from Mobile TV ............................................................ 16
4.6 In creasing ARPU from Existing Services ....................................... 17
4.7 Mergers & Acquisi tion s ............................................................ 17
4.8 Network Coverage & Capacity Expansi on ..................................... 18
4.9 Optimizing Promoti on al Initiatives .............................................. 18
4.10 Sou rcing VAS Con tent from Third Parti es ................................... 18
4.11 Upgrading Network to En abl e New Servi ces ................................ 19
5. Con clu sion ................................................................................. 20
Appendix A: K ey IT Spen ding Deci sion Makers ....................................... 21
Brazil ....................................................................................... 21
Appendix B: Definition s .................................................................... 22
B.1 Software .............................................................................. 22
B.2 Hardware ............................................................................. 24
B.3 Servi ces ............................................................................... 25
Appendix C: Meth odol ogy .................................................................. 27
C.1 Evalu ating Criticality Sc ore ...................................................... 27
C.2 Evalu ating Demand Score ........................................................ 30
Oth er Reports in this Seri es ............................................................... 31
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List of Exhibits
Exhibit 2.1: IT Deployment Details ....................................................... 5
Exhibit 3.1: Software Sales Opportunities Map ........................................ 8
Exhibit 3.2: Opportunities and Related Sal es Dri vers for Software ............... 9
Exhibit 3.3: Hardware Sales Opportunities Map ...................................... 10
Exhibit 3.4: Opportunities and Related Sal es Dri vers for Hardware ............. 11
Exhibit 3.5: IT Services Sales Opportuniti es Map .................................... 12
Exhibi t 3.6: Opportunities and Related Sal es Dri vers for IT Servi ces ........... 13
Exhibit C1: Calculation s for Estimating Cri ticality Score ........................... 27
Exhibit C2: Criticality Scores for Various Software Application s ................. 28
Exhibit C3: Criticality Scores for Various Hardware Produ cts ..................... 28
Exhibit C4: Criticality Scores for Various IT Servi ces ............................... 29
Exhibit C5: Calculation s for Estimating Deman d Score ............................. 30
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1. Company Overview
1.1 Business Overview
Brasil Telecom S.A. is a Brazil based telecommunication service provider headquartered at
Brasilia. The company's operations are carried out through three business segments: Fixed
Telephony and Data Transmission segment, which consists of local and supplemental local
services, intra-regional and inter-regional long distance services, and data transmission
services. Mobile Telephony segment consists of a comprehensive range of mobile services
whereas the Internet Services segment provides Internet related services. The company
also supplies telecommunication infrastructure to other companies. Its internet providers
are iG, iBest, and BrTurbo. Other subsidiaries include Brasil Telecom GlobeNet
(telecommunications infrastructure provider) and Brasil Telecom Communication Multimedia
(data communication services provider). The telecommunication services of the company
are provided in Brazilian states of Acre, Rondonia, Tocantins, Mato Grosso do Sul, Santa
Catarina, Goias, Mato Grosso, Parana, and Rio Grande do Sul as well as long distance
national and international service all over the country.
1.2 Key Figures
Brasil Telecom S.A. recorded revenues of $6,252.3 million (R$11,058.5 million) during the
fiscal year ended 31st December 2007 up from $4,828.4 million (R$10,296.6 million) during
the fiscal year ended 31st December 2006. In terms of US dollars, this translates to an
increase of 29.4 percent, which is mainly attributed to exchange rate fluctuations. In terms
of Brazilian Real, the increase in revenue was 7.3 percent.
The net profit was $379.4 million (R$671.2 million) in fiscal year 2007 up from $220.5
million (R$470.3 million) in fiscal year 2006, an increase of 72 percent in US dollars terms.
In terms