Corporate Profile

We are Algar Telecom, a company that has its core business in the provision of telecommunication services over a optical fiber infrastructure. We serve customers in 372 cities in 16 Brazilian states and the Federal District, and our main focus is on B2B customers.

Headquartered in Uberlândia, Minas Gerais, we are part of the Algar group, one of Brazil’s most important business conglomerates, and our business and history span 68 years. Through our modern, extensive infrastructure, built on cutting-edge technology and backed by a network adding up to approximately 115,000 kilometers of optical fiber cable, we are devoted to fulfilling our purpose: people serving people. To accomplish that, we channel our efforts into providing the best experience to our customers by combining a quality service with an effective, close support.

As a brand, we are recognized for providing innovative, solid and secure products and services. We serve large corporations, small and medium-sized enterprises, the telecommunications industry, and residential customers. With an authentic way of serving, coupled with the determination to always offer fast and easy interaction resources, we develop long-term relationships with our customers.

For B2B customers, with a break down into Corporate (medium-sized and large enterprises) and MSEs (micro and small enterprises), which added up to 183.7 thousand and accounted to 64% of our net revenues as of December 31, 2021, we provide solutions combining high-speed data links with voice and IT services.

Net Revenues (%)

In the B2C segment, we are the market leader in the areas we serve—cities in the states of Minas Gerais, São Paulo, Goiás and Mato Grosso do Sul—providing Internet solutions over optical fiber infrastructure, mobile phone and landline services to 1.1 million customers. At the end of 2021, our optical fiber network reached 94.7% of the over 1 million households in the region, and 52.1% of all households were connected to the Internet through Algar Telecom.

These results arise from the commitment of our about 5,000 associates (as we call our professionals), to our consistent investments in the latest of technologies, to the constant evolution of our corporate governance practices, and to a corporate culture in which sustainability and innovation pervade all of the company’s teams and activities.

National Reach

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Business Customers (B2B)

Our B2B customers break into Corporate (medium-sized and large enterprises) and MSEs (micro and small enterprises) and accounted for 64% of Algar Telecom’s total revenues in 2021, as a result of our strategic focus over these customers in the Company’s geographic expansion process in the past few years.

We provide these customers with connectivity over optical fiber solutions combined with landline voice and IT services. Our IT products cover a full range from data storage media, such as cloud storage, to network and traffic security—for companies with branches—to wi-fi control and social media solutions for micro and small businesses. Having accounted for 13% of our revenues from the segment in 2021, these products enable us to understand the needs of our customer in a broader way, contributing to a longer customer stay with the company and to higher average tickets price.

To support our point of difference, which lies in the quality of our telecommunication services and customer service, as well as a network topology featuring state-of-the-art technology and using double and triple routes to ensure a high level of service availability, our Network Operations Center works 24x7 and constantly monitors information to anticipate any potential incidents and shorten response times.

In addition, we prioritize local sales teams in the various cities we serve, who know the habits and demands of each region, and we have skilled technical teams to do maintenance as effectively as possible.

We were presented in 2021 with two major awards for our work in this segment: as Leading B2B Operation, from the Cliente S.A. magazine, and as Company of the Year in the Corporate Segment, from the Telecom Yearbook. We believe that recognitions like these result from the assertiveness of our business model and from the position we took to strengthen our relationships with these customers and continue improving the quality of our customer service.

Retail Customers (B2C)

We provide telecommunication services for residential customers (B2C) in our original area of service, which comprises cities in the states of Minas Gerais, São Paulo, Goiás and Mato Grosso do Sul.

Our solutions comprise high-speed broadband internet, mobile phone and landline services. To provide the best connection experience to our customers, we invested into expanding our optical fiber networks, and by the end of 2021, our optical fiber cables were running through 94.7% of the over 1 million households in that region, 473,000 of which were connected to the optical fiber network through Algar Telecom. Accordingly, out of our total 506,000 broadband accesses in the B2C segment, 93.5% were over optical fiber.

Our mobile service had more than 1 million users at the end of 2021, 45% of whom with postpaid plans. Aiming to always provide cutting-edge technology to our customers, we were the 1^st operator in Brazil to launch 5G services at the 2.3 GHz frequency, which we did in 3 of our key cities in the B2C segment. This technology, for which we cover the broadest spectrum in the region, is going to enable us to continue being a pioneer and to offer modern and innovative products to our customers.

We serve customers in this segment not only from our own operation, but also through our franchises, a business model that we pioneered in the telecom sector in 2018. By this business model, the franchised entrepreneur, who is the one with the closest connection with the city, manages the network’s expansion and the technical team and provides service installation and maintenance (broadband, mobile phone and landlines), and also manages the entire customer experience—from the first contact to the aftersales. Algar Telecom, in turn, provides full specialized support to franchises, from the business to the operation. Our franchises allowed the optical fiber infrastructure to reach smaller municipalities faster, while giving a boost to entrepreneurs in those regions, leading the Company’s customers to increase in number.

In years when connectivity was more essential to people’s lives than ever before, allowing them to work and take online classes remotely, while giving them more options in information and entertainment, Algar Telecom is keeping its commitment to deliver quality services, together with a close and effective relationship with its residential customers.