Page 41 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 41
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
GVT
2.6.4. Network
GVT’s network is the most modern in Brazil. It includes one of the most
extensive local access networks and long distance fiber infrastructures in
the country, which supports its leading position in the NGS market and
allows the company to expand its presence nationwide.
GVT has designed its network using state-of-the-art technology that is
feature-rich and capable of supporting the growing market demand for a
wide range of telecommunications, high-speed broadband and multimedia
services.
The core network is conceived around an IMS architecture which provides
the company with unique, more flexible, faster time-to-market integrated
services including fixed telephony, voice, data, VoIP and video (IPTV
services). Collocation services are already available in three data centers
in three different cities and cloud services are under development to be
launched in 2013.
GVT’s network access solution is unique in the Brazilian market, since
it is based on a FTTN (Fiber-to-the-Node) network, which combines
metropolitan fiber optic rings and short copper lines, with 200 meters
between the street cabinets and the households. The proximity of this
network to customer premises enables superior quality and higher
bandwidth services of up to 20 Mbps with the current ADSL2+, 50 Mbps
with VDSL2 technology (limited to 800 meters) and 100 Mbps with EFM
(Ethernet First Mile, which is Active Ethernet using fiber drop directly
from a street cabinet to the customer’s premises). GVT has upgraded its
network access architecture with GPON 2.5 Gbps technology. Three new
cities will benefit from this technology in 2013, allowing customers to be
offered speeds of 300 Mbps or more.
The new hybrid Pay-TV service works over the IP network for on-demand
services, using a CDN structure for video distribution and using DTH for
linear channels via Ku-band satellite.
GVT has 69,700 kilometers of cable (fiber + copper networks) in
metropolitan areas. In addition, as of December, 2012, GVT’s long distance
fiber network is 29,500 route kilometers long, covering 85% of its traffic
demand.
2.6.5. 2012 Highlights
✱ In February, the company and Blizzard Entertainment entered into a
partnership, to provide GVT customers with “Power GVT,” an exclusive
offer which grants broadband customers free download access to
the Brazilian-Portuguese-language version of World of Warcraft® ,
including the game’s first expansion, The Burning Crusade®. At the
same time, POP, GVT’s content portal, announced its partnership with
Buscape, the biggest price comparison website in Latin America.
The partnership enabled Shopping POP to expand to more than 10,000
registered stores, with 9.5 million offers and products available for
comparison.
✱ In March, GVT launched its “catch-up TV” and “Multiroom” services,
both brand new applications in the Brazilian market. The company
also made new channels available. Additionally, an improved “Power
Music Club”, GVT digital music and video streaming service became
available on the customer’s TV screen.
✱ In May, following its territorial expansion plan, GVT deployed in two
new capitals in the Northeast, Maceio and Aracaju. Together, the
two cities total 1.6 million inhabitants. The company also launched in
five new medium cities in the states of São Paulo, Minas Gerais and
Espirito Santo.
✱ In July, during the Olympic Games in London, GVT Pay-TV service
entered into partnerships with sports channels, offering exclusive
coverage and catch-up TV content to customers via social networks.
GVT also announced that Fortaleza, a major capital in the Northeast,
would host its new call center site.
✱ In August, GVT’s broadband service “Power” reached the two million
subscribers mark. At the same time, GVT marketed special prices for
its triple-play offer, with aggressive discounts in broadband and “à la
carte ” TV services.
✱ Also in August, GVT reviewed all its voice plans with updated
minutes tailoring to each customer’s profile, increased the lowest
broadband speed in the packages with Pay-TV services to 15 Mbps
and announced even more attractive broadband prices, as part of the
triple-play packages.
✱ During ABTA, the main Brazilian fair in Pay-TV segment, GVT
announced that social networks such as Facebook, Twitter, YouTube
and Instagram were now integrated into “GVT TV”.
✱ In October, GVT launched its own platform to discuss new
developments and innovations created by GVT Labs, called “House
of the Future”. It also launched operations in the city of Natal,
located in the Rio Grande do Norte state, which has approximately
800,000 inhabitants.
✱ In December, GVT broadcast its first live concert via Pay-TV
and Internet.