Good morning, ladies and gentlemen. Thank you for standing by, and Welcome to Oi S.A.'s Conference Call to Discuss The Third Quarter of 2020 Results. This event is also being broadcast simultaneously on the internet via webcast, which can be accessed on the company's RI website, www.oi.com.br/ri, together with the respective presentation. We would like to inform that during the company's presentation, all participants will be only able to listen to the call. We will then begin the Q&A session when further instructions will be given. In case you need any assistance during the conference, please request the operator's help by pressing star zero. We also like to inform that the conference call will be conducted in English by the management at the company, and the conference call in Portuguese will be conducted via simultaneous translation.
This conference call may contain some forward-looking statements that are subject to known and unknown risks and uncertainties that could cause such expectations to not materialize or differ materially from those in the forward-looking statement. Such statements speak only of the date they are made, and the company is under no obligation to update them in the light of new information or future development. I will now turn the conference over to Mr. Rodrigo Abreu, CEO. Please, Mr. Rodrigo, you may proceed.
Thank you. Good morning, everybody. Welcome to our Q3 call. As usual, it's always good to have you with us and talk about the progress on the execution of our transformation plan. Q3 2020, as you know, was the first full quarter under the effects of the COVID-19 pandemic. It's important to put that into context when looking at the results. You also see that in our view, the company did a pretty good job in managing it. At the end of Q3, not only we were going to talk about the results, but also about the very significant event that happened to our transformation, which was the approval of our judicial recovery plan amendment at Oi's second general creditors meeting.
This approval was already validated by the judicial recovery courts at the very beginning of Q4, this allows us to keep executing our transformation journey and its key movements. Let's first take a look at some of the highlights of the quarter, which as usual, will be detailed in the upcoming charts. Turning to page three. As we can see in Q3, despite the pandemic, the company continued to deliver, we believe, on both the operational and the transformational fronts. The approval of the plan amendment was, in addition to that, paving the way to the sustainability that the plan looks for. Starting with the operational results, on the top left corner, we can see that fiber had yet another stellar quarter.
We had 1.75 million FTTH customers reached, with 7.9 million homes passed with fiber, this continues to maintain the very fast pace of deployment that we have been showing consistently for the several last quarters. We reached an average of almost 150,000 new customers per month on the quarter, with an average of almost 400,000 new homes passed per month. This obviously puts the company on its track in terms of the strategy for fiber. Still on the operational front, talking about mobile in the left low corner, we can see that mobile, despite the pandemic, actually had a pretty good recovery, on a sequential basis, we had a 2.1% growth in postpaid and 8.2% growth in prepaid revenue, despite the fact that overall, there was a little impact on year-over-year growth for the mobile segments.
The postpaid showed positive growth, the prepaid showed negative growth, but on average, the quarter showed very good recovery considering the pandemic situation. This all led to very good results in revenue, and we showed 3.5% of sequential revenue growth, which obviously is a very positive feat considering the impact of the pandemic on mobile revenues. We can see that this happened with a very good contribution from pretty much all segments, but we would like to highlight the residential segment, which consistently had been a source of concern given the decline of copper revenues. But we can see that thanks to the very good performance of fiber, we are now on the positive route on the residential segment as well. All of that actually was complemented by a very good work on the cost side.
We continue the progress of our simplification and efficiency efforts, and all of that led to almost 10% of OpEx reduction year-over-year, which led to a positive EBITDA growth year-over-year of 2.4%. In terms of cash, obviously this is one of our key metrics, and the cash management of the company actually did very well during the quarter. We ended Q3 with BRL 5.7 billion in cash, dismissing some of the concerns in terms of the cash burn that had been shown in some of the previous quarters.
Finally, on a transformational side, the GCM approval led the unlocking of many of our M&A processes, and we now have defined dates for the judicial processes that will conclude the operations for the sale of towers, data centers, and our mobile operation. On the infrastructure company side, we continue to have our M&A process firmly in course, and we would expect to actually have the first results of that by the end of this year, beginning of next year. Next, turning to page four, let's look at some of the details starting with fiber. On fiber, due to the scale and speed of our fiber deployments, Oi can once again contend for the overall broadband market leadership with a very strong competitive position.
We always said that this was something that the company wanted to achieve by resuming its position on broadband due to the fiber operations, and it's happening. As we can see, we continue to outrun all of our large peers in terms of the fiber deployments. If we look at what happened during the last 12 months, we have now surpassed the combination of our three largest competitors by almost 17%. This consolidates our leads in the overall ultra-broadband market for all technologies. If we look at the net adds for ultra-broadband, which is above 34 meg in the third quarter at 2020, we can see that we beat the second player by almost 20%.
If we look for the results in September, we can see that also, we were the best performance in all of the broadband technologies and speeds for the first time in a very, very long time. Obviously, when we look at the scenario, the ISPs continue to do very well. We would like to put that into perspective in terms of the sheer number of customers that we have been adding on fiber on a monthly basis, and obviously looking at our last results of Q3. When we look at the top five ISP fiber customer base, we can see that the largest player has a little bit over 500,000 subscribers, and the top three player is already on the range of slightly over 300,000 subscribers. Putting that into perspective, Oi, during the quarter, added a top three ISP just by its fiber subscribers.
We continue to be very competitive, not only against the large operators, but also competing with small players whenever we are present. All of that leads to a market share increase in ultra-broadband. By the way, we were the only company that actually continues to increase and push market share consistently quarter after quarter. Next, turning to page five, let's look at how this performance was translated into revenues for fiber. Fueled by continued efficiency and the rapidly expanding base, coupled with the introduction of new plans, our fiber revenues have grown almost 5x year-over-year. We can see that the number of homes passed has already reached a very large number of close to 8 million homes passed, and we expect to close the year with around 9 million homes passed.
In terms of homes connected, we are also already very close to 2 million subscribers at this point in Q4, and we closed Q3 with almost 1.8 million subscribers. Looking at that, we can highlight as well the take-up rate during Q3, which was above 22%, getting very close to the 25% plan that we had for 2022. We're really accelerating the take-ups and solidly on track to executing the plan that we said we would execute on the fiber deployments. When we combine that with the new plans that were launched during the quarter, not only the 400 Mbps plan, but also the 500 Mbps plan, we can see that our base starts to shift slightly to higher speed plans. During the Q3, we already had close to 5% of our fiber customer base moving to the higher-end plans.
This led also to an increase in our fiber ARPU of over 3%. We are already reaching, during Q3, an ARPU of close to BRL 90, BRL 88 to be more precise. All of that led to very positive results in the revenue, and we reached over BRL 400 million in revenues. Highlighting as well that B2B on the small and medium enterprises started to gain some traction, and we have a firm and solid plan to continue expanding this expansion. All of that was actually instrumental to reach an inflection point in our residential revenues, as we can see on the next slide. On page six, we can see that as we said in our plan, fiber would be the way to replace the old legacy copper revenues, and this is already happening.
We see that fiber is poised to become the largest component of our residential revenues, helping the segment return to sequential growth for the first time in 11 quarters. It's a long time after this happened, but now that it happened, it is consistently happening, and we see a no-return path for this inflection point. Starting with the net adds in terms of number of residential RGUs on the left-hand side, we can see that in Q3, for the first time, we now have a positive net add for residential RGUs. When we look at the broadband customer mix, we can also see that we increased almost two points compared to the last quarter and almost 30 points compared to the third quarter of 2019.
We have fiber representing already virtually 40% of our customer base mix. In terms of revenues, we can also see that the revenue mix has been improving and fiber is already the number two component, poised to become number one very soon. We also can see that the fiber revenues have already surpassed all of the copper broadband revenues, and it's very close to reaching the copper voice revenues. When we look at the declines and growth in all of the revenue components, obviously we continue to experience the decline in the legacy revenues at the clip of -31% on copper, -35% on copper voice, and -35% on copper broadband. Also with a slightly less inclined curve on DTH of -14%, but the fiber revenues grew 491%. This led, on the third quarter, the residential revenue to grow sequentially 2.7% to BRL 1.625 billion.
Obviously, this is very positive, it's all due to the acceleration of fiber that continues. As we can see, our annualized revenues at the end of Q3 for fiber alone are already almost BRL 1.7 billion. Obviously, this shows very good operational results. They are coming, the fiber strategy is working. On the next page, on page seven, we can also look at the details of mobile. In mobile, as you know, we had the segment that was hardest hit from the pandemic. We can see also that recovery started to occur still in Q3. Our mobile revenues, they resumed sequential growth in the quarter with great resiliency of postpaid results, both on a quarter-over-quarter and year-over-year metrics. While prepaid obviously suffered a little bit more initially, but experienced a fast recovery from the early days of the pandemic.
Oi continues to charge ahead on mobile, not only on the results, but also on the innovation. We did our 5G pilot launch in Brasilia. On the revenues, we can see that we have a 4.8% sequential revenue growth. This was due to a growth both in postpaid and prepaid. When we look at the details year-over-year, postpaid continued to show a very good performance of almost 4%. Prepaid was hard hit with 9.6% negative growth, starting to show the signs of recovery and already growing sequentially. On postpaid, it's also worth highlighting that our customer base grew almost 10% year-over-year. On prepaid, we can see a V recovery in the top-ups.
The top-ups have gone down from first quarter 2020 to the second quarter 2020, but they started to go up again on the third quarter 2020, and we have a pretty good number considering the beginning of the year. Next, let's look at B2B and wholesale on page eight. Both segments also felt the hit of pandemic on traffic. We can see that B2B also is starting to recover from the early impact, especially on traffic, showing sequential revenue growth, in particular with the help of IT services. The wholesale revenues, they also improved to stability with the recovery of non-regulated revenues, and as we showed, good prospects with increased sales to ISPs. On the B2B side, we can see that we had stability on the corporate segment, and obviously growth on a sequential basis.
On the small and medium customers, we reached again stability from the second to the third quarter 2020, but we are also working on a recovery plan that will benefit from our FTTH deployments also for the segment. In terms of IT revenue evolution, the highlight is that we are already reaching almost BRL 190 million in the quarter. It's a 50% compound growth since the launch of Oi Soluções, which points to the correct direction of our strategy in terms of corporate revenues, and obviously having IT increasing quarter after quarter as a percentage of our revenue mix. On the wholesale front, we also had a growth considering the results from last year to this year, that we faced some challenges during the beginning of the pandemic, but the numbers, as a whole, they stabilized.
We can see that the unregulated revenue also started to increase again, while the low-speed legacy regulated revenue, in particular due to the impacts of traffic, had a slight decline. On the wholesale front, it's also worth highlighting that our net sales to ISPs have increased dramatically. When we look at the results compared with last year, it's almost a 400% increase, showing that this is a very promising segment that we believe will be one of the bases of the growth in infrastructure for the future to come. Moving on to page nine, let's look at our cost efforts. Here, the focus on simplification and efficiency continues to pay off, leading to progress on digital transformation, further OpEx reductions, and a return to annual EBITDA growth.
On the OpEx side, as we already highlighted at the beginning of the presentation, we had an almost 10% reduction virtually in all cost components. How did we do that? We did that through a combination of several different initiatives, starting with digital-first. In this case, the pandemic actually helps to move things to digital faster, both internally and externally. This leads to numbers such as 85% of reduction of the interaction, sorry, of our clients through digital channels, leading to a great reduction in terms of the human contact, which obviously is a more costly component of customer care. We also had close to BRL 140 million in savings with front office and back office optimization due to robotization and automation of processes, and our customer care operation continues to deliver very good results on cost reductions.
This was aided by innovative solutions such as the increase of the use of our digital assistants and of our artificial intelligence, and also a very good increase in the usage of our self-care solutions, such as Minha Oi. On the structure and processes front, we also had some very important progresses during the quarter. In addition to that, right after the end of the quarter, we announced an incentive program for our workforce reduction that will lead to an annualized savings of over BRL 200 million next year. On the operational front, we also focused heavily on efficiency, in particular on the legacy costs, which led to OpEx reduction by virtually shutting down all of the legacy portfolio sales, reducing the number of legacy stations, and migrating whenever possible from copper networks to fiber.
All of that leads to a growth in routine EBITDA of 2.4%, and it's important to notice that we also increased the EBITDA percentage. Next, talking about CapEx on page 10. We can see that the CapEx strategy was a continuation of the things that have already started to occur since the launch of our strategic plan. The allocation profile of the CapEx continues to evolve in full alignment with the company's fiber strategy, obviously increasing the allocation to FTTH and reducing significantly the investment in legacy. As we can see on the FTTH compared to last year, we had a 20 points increase from third quarter 2019 to third quarter 2020 in the allocation to fiber, and a 13 points reduction on the legacy, in particular, the copper investments.
Obviously, this is important, aligned with our strategy to center the activities of the company around the core aspects of fiber. Despite the CapEx rhythm, our cash management was really tight, as we can see on page 11. On page 11, we demonstrate that we had a strong commitment to financial discipline, and this allowed the company to control the cash consumption, obviously with the approval of the plan amendment, helping to ensure that the funding options necessary to deliver the execution of the transformation plan are now in sight, both with the execution of our M&A processes, also with the reduction and deleveraging of the company, considering not only the repayment of debt, but the restructuring of part of it. On the cash flow side, we ended the quarter with close to BRL 5.7 billion in cash after having started it with just slightly over BRL 6 billion.
A cash consumption overall of less than BRL 400 million. Considering the investment period that the company is going through to fund our fiber expansion, this is a very positive result. This was helped by the increase in routine EBITDA. We also had one extraordinary effect in the quarter, which is the anticipation of the Sistel payment, the surplus of Sistel, which helped us increase the cash by slightly over BRL 400 million. Obviously, we also continue to count on the non-core effects. Given the approval of the GCM, the non-core effects going forward will continue to occur, coupled to the sale of some of our core assets. This helped the company to bring in close to BRL 200 million during the quarter.
On the debt, we see an increase to BRL 21.2 billion of net debt. This was an effect primarily of the increases in interest, FX variation, and the fair value amortization increase due to the progression of the period of the debt. Obviously, we see all of that under the lights of the approval of our judicial recovery amendment. Obviously, the sale of the UPI will help us address a key concern of the company, which is the funding of not only the investments for the time to come, but also to the reduction of the debt. All of the projects continue working very well and progressing very well. Towers, data centers, mobile, the infrastructure company, and also the initial phases of our efforts on TV.
All of that will lead to a leads to a debt prepayment and deleveraging of the company, both by repaying bridge loans and BNDES and by repaying local banks and ECAs already with the restructuring of 55% announced and approved during the GCM. In addition to that, we also have added in the plan funding optionalities to do a funding transition during this period while we complete all of our operations by resorting to some pre-approved options in our plan to fund the transformation journey.
This has components such as a potential bridge from the UPI Mobile sale in an amount of up to BRL 5 billion, two other lines of BRL 2 billion each, and the flexibility for additional funds guaranteed by the structuring of the InfraCo model that we have put together, which will allow it, if required, to be releveraged without any impact on the plan. Next, in order to do all of that, how are we tracking our transformation plans? On page 12, you'll be able to verify that we're having that with a very structured and disciplined approach. To ensure the successful transition of the model, the company is carrying out an integrated execution of 15 transformation programs, covering virtually all of the aspects of the change that the company's going through.
Starting with all of the M&A processes, then looking at the creation of all of the structures that will represent the future of the company in terms of the InfraCo and the transformation of the new Oi and the creation of our so-called client company, all the way to the efforts of the support areas in looking at digital transformation, transforming our organization, and obviously tapping very firmly and very strongly on the regulatory agenda. Finally, going to all of the cost and cash initiatives, such as a drastic cost-out program in all areas of the company, a de-averaging of our legacy costs, as we have announced several times before, a very deep review in our procurement processes, and our actions to allow for short-term financing during this transition.
All of that is obviously complemented by the very close follow-up of the business execution management with a TMO approach, which is the Transformation Management Office approach that follows all of those initiatives with a great level of detail. As we can see, we have lots of work for 2021. On slide number 13, we can see what is the expected timeline that points to a complete transition of the model by the end of 2021. As we have highlighted already, during September, October, we had the approval of our plan amendment in our general creditors meeting and the confirmation by the judicial courts of the plan approval. During November, at the end of November, we expect to conclude the competitive bidding processes for both the UPI Towers and the UPI Data Center.
In mid-December, we also had an announcement of the date for the competitive bidding process for the UPI Mobile, and then we expect the closing with cashing of both the Towers and Data Centers. Starting next year, we will have the infra company and TV company UPI auctions. Finally, leading to the closing of the large processes during Q3 and Q4. All going according to plan. We already have a set date for the end of the judicial recovery, which is by October 21. Looking at all of that, what to expect in terms of where are we going by the end of next year? On page 14, we can see that the company has and is executing on a very clear vision. At the end of the transformation process, Oi will have two very strong pillars with clear and distinctive value propositions.
On one end, the new Oi, which will be an integrated company with technology and digital services platforms that will help people and companies transform their lives and businesses. We're calling this client company a digital experience company. It not only will be a customer-centric company, but we will leverage on a very strong customer brand, and this can be shown in the launch of several new initiatives by this quarter and last quarter, such as the launch of the Oi Place marketplace for connectivity services and products. By the launch of Oi Expert, which is our help desk service to all of our customer base, which is already gaining a lot of traction. By the continued acceleration of Oi Play, which is our content play in terms of aggregating streaming services. By our points program, which has been completely renewed. By the use of Joice.
By the use of our self-help care tools. Obviously, by the launch of several new digital services to come. The possibilities are endless, and we can see that not only we will do that to the customer side, but also to the corporate side with the continued evolution of Oi Soluções. On the other end, we'll have the infra company, which, without any question, will be the largest telecommunications infrastructure company in the country, massifying optical fiber, enabling the very rapid expansion of broadband, not only for the new Oi, but also for the entire country. Expanding and enabling the 5G services through the use of our very capillary fiber, and also enabling business services across the country. We see that the infra company already has a mantra, which is one infrastructure, multiple networks, and all of the futures for the operators in the country.
The largest neutral network player enabling all types of connectivity services based on our extensive fiber network. In closing, on page 15, we can see that we continue to successfully stabilize and improve our operations. We have already redefined our strategic model, and we are delivering a very strong acceleration of our fiber optics plan. The approval of our judicial recovery plan amendment in September was a firm validation of our ambitious model to accelerate growth. It will enable the creation of the largest infrastructure company in Brazil and will bring back Oi to the long-term sustainability that we all have been looking for. The structural separation model will allow for conciliating both strong growth and financial stability, both for the infrastructure company and for Oi S.A.
The plan amendment also allows for a significant injection of resources into the company through the sale of the UPIs, helping secure both investments for the long run and a critical reduction in our company debt. This transformation will be relentlessly pursued through the integrated execution programs that we showed you, and that we are executing on a daily basis. Having said that, we highlight once again that this management team and the board of directors continue fully committed to executing this new strategic model with rigor and speed. Not only we have this commitment, but we also have our full confidence on the successful execution of our plan. In general, those were the highlights we would like to present for Q3, and we believe that we will move on now to the Q&A section.
Ladies and gentlemen, we will now begin the Q&A session for investors and analysts. Remember that questions should be asked in English. Our first question comes from Mr. Fred Mendes from Bradesco. You may proceed.
Hi. Good morning, everyone, and thanks for the call. I have two questions here more for the FTTH. The first one, when I compare your performance on the FTTH with the second-largest competitor, definitely calls attention. I just want you to know, Rodrigo, here, where are you seeing the main competitive advantage that you are seeing right now? If there is any specific region where you are performing better? I think the main goal is to understand how sustainable is this, let's say 150,000 homes connects per month, for how long we can see that, and if there is room for improvement. This will be the first one. The second one on the same line, you already reached a take-up rate of something like 22%, I guess. The target for the mid to long term is close to 25%.
I just wonder if there is room to revise these long-term targets, or if you prefer to be conservative at this point. Thank you.
Thank you, Fred, for the questions. Well, starting with the first one, we obviously have been having a very strong performance. We believe that this is across the board, Fred. It's not specific in one region or another. It's in the entire country. Obviously, what we have been doing is we have been doing a deployment that is based on a very fine grain approach and a selection of targets that we have done a while ago. Obviously, this points to a large demand base potential that we have seen in the entire country. As we have highlighted a few times before, we believe that this overall number of viable homes for broadband, for fiber broadband in Brazil is above 30 million. It's actually closer to 40 million.
That's the reason why we have, in our plan amendment, increased our targets for the infrastructure company to cover over 30 million homes. You can say that we're just starting, because in reality, we are still less than 1/3 of the way. When we look at how can we do that, what is the main competitive advantage? Well, the product to begin with is a very good competitive advantage. We're competing with an existing customer base where people don't have fiber yet, that is based on FTTC or is based on coax. It's unquestionable when you look at the quality difference in terms of stability, in terms of performance, that we have a superior product.
When we compete with local ISPs and when we compete with fiber directly, we can also point out to our main competitive advantage being in the very strong performance of our overall core network. Remember that the fiber product is not only what goes into the customer home, but it's also how this whole traffic is managed and carried out in the core backbone and the core backhauls. We rely, we believe on the strongest backbone and backhaul infrastructure in the entire country. We don't have many of the limitations in terms of a traffic capacity that many or even most of those local players have. This has allowed us to maintain a very consistent performance, even during times of great stress to network traffic with increases close to 40%, 50%. It's a combination of competitive advantages on the technical side.
I can still point to yet two additional components. We highlighted those before already. One of them is the very strong sales channel that the company developed. Oi was the only company to actually develop sales channels across the country, in the entire country. As you know, it's the only company that covers almost virtually all of the country's municipalities. This, even though this is not being used to sell copper anymore, and we highlighted that, obviously, the knowledge of the local channels and the knowledge of how to work in the entire country has helped us tremendously. Finally, I cannot go without mentioning the deployment machine that we have. We do have a deployment machine that is based on a very steep learning curve that was done since the beginning of the project, and that also relies on a company that we control.
It relies on Serede. We control our field team, we control the quality of our field team, we control the speed of our field team. We can very rapidly redeploy our field team to do work whenever is needed, and more productive for us. As such, it's really a very good combination of a lot of factors. There's no single silver bullet here in terms of competitive advantage. We believe that this is good because, in reality, it makes our road not super easy to replicate. It's not just throwing money around. It's actually a combination of a lot of things that have developed over time. In terms of the take-up rate, just going back to what I pointed out in the response to your first question, obviously we had planned when we launched the plan back in the middle of 2019.
We had planned for reaching 25% take-up by 2022, so three years after the launch of the plan. We'll certainly get there way sooner. When we redone the plan with the plan amendments, and the structural separation with the increase in investments on the infrastructure company, we saw that, yes, this number can be increased. It can be increased for the infrastructure company, and by the same token, it can be increased at Oi. We're looking at the number, which is already higher than this. I would say that it can approach the 30% take-up rate. When we look at the numbers for both companies, the 30% take-up rate actually leads to a plan a few years down the road on the infrastructure company to have at least the 10 million homes connected as part of its plan.
Obviously, we believe that the vast majority, over 70% of those, will come from Oi itself. We can also benefit, especially in the areas where Oi directly does not operate from the growth in ISPs. As you saw, we highlighted in one of the charts that our sales to ISPs have increased tremendously, and we could benefit not only from providing backbone and backhaul, but also by doing partnerships with them and selling the complete FTTH approach, including the home connected.
Perfect. Rodrigo, very clear. Thank you.
Thank you, Fred.
Our next question comes from Mr. Marcelo Santos from JP Morgan. You may proceed.
Hi. Good morning. Thanks for taking my question. The first would be on fiber ARPU. You saw a good improvement. Do you see room to see further improvements as you continue to migrate clients to faster speeds and also continue to add more products to RGUs per subscriber? Linked to the first question is regarding DTH, which saw sequential growth. I kept wondering, when you are adding these fiber clients, are you initially adding them with DTH? If that's the case, is there room to migrate into IPTV later and boosting up the ARPU? Thank you. That's my question. Thank you very much.
Thank you, Marcelo. On the fiber ARPU, yes, we obviously believe that there is space to grow, and this is a combination of obviously having a stable customer base that keeps increasing. If you recall, we have been publishing the fiber ARPU and mentioning that while we continue growing at a very fast speed, the fiber ARPU also will be increasing just by the sheer effect of the increase in the customer base. The fact that as we add another 100,000, 150,000 subs a month, this will be added over a base that is getting bigger every day. The impacts of dilution will already play a part in increasing ARPU and stabilizing ARPU around the higher numbers.
Obviously, when we look at the speeds, and we show that not only we have reached an interesting number already with the product for 400 Mbps that was launched not too long ago. We have now launched the 400 Mbps . We obviously believe that we will continue increasing our launch in higher speeds, and this will help us move the base to a higher quality base. In particular, those users that were still looking for reasons to switch. When we move to higher speeds, one thing is, "Hey, should I just transition my 120 Mb internet for 200 Mb ?" In our view, the answer is obviously yes, because it's such a much better quality that the switch is worth it. When you start launching the 400 Mbps, the 500 Mbps, and up, then the switch becomes more attractive and more clear.
This brings a piece of the customer base, which is naturally a higher-paying customer base. Yes, we do see room to improve. In terms of additional products, we have started expanding the Oi Play approach, so the streaming services. Obviously, IPTV will play a part in that, and it will continue to grow. I would like to highlight that in the future, this is part of the whole strategy of the client company and the centrality on customers and the focus on customer experience. We believe that we can add additional components of ARPU, which are not necessarily telecom services. Just to give you an idea, we have launched our Oi Expert service, and the Oi Expert actually provides a number of services to the home in terms of helping configure and run and troubleshoot issues with home connection.
As you know, in many cases, the issues are actually due to customer devices. We are looking at not only expanding our technology to be able to detect that automatically, but also to offer services to help consumers in their own homes. This has already gained a significant traction. We are also launching other services in terms of offers for the home. The Oi Place will play a part in that. We are carefully curating products that can be offered to complement our fiber services. Obviously we see room to improve. In terms of DTH, no, we have not used the strategy of actually going in first with DTH and then migrating to IPTV.
The DTH strategy started on its own, and it helped that obviously with our local presence in pretty much all of the country and a good sales channel approach, we were able to expand DTH, in particular in areas where there's no other option in terms of TV services. No fiber, not even cable. I would say that it's a service that is slightly more resilient than the segment as a whole. When we look forward, without a question, the structural trend, not only in Brazil but globally, is that DTH TV is probably coming down. In our case, what we did to sustain this positive performance was that we closed very good partnerships with installers. We obviously also closed very good partnerships with companies that are helping us work on the electronics on the set-top boxes.
This has been proving very helpful in maintaining our customer base and even increasing revenue slightly in some cases. The market, again, is migrating to OTT. We'll see that this migration will be negative in the long run to DTH, but it will be positive to Oi fiber and to streaming and to Oi Play. It's a very good performance, but we see it as a natural component of the strategy and also a little bit of the situation as you saw TV had a slight less negative time given the pandemic because the consumption of content increased during this last period. We see it with the structural long term with a slightly still decline on the overall numbers. That's it in terms of DTH.
Thank you very much. Thanks.
Our next question comes from Ms. Maria Tereza Azevedo from Santander. You may proceed.
Hi, everyone. Thanks for the call and congrats for the fiber execution. Rodrigo, can you comment a little bit on how do you see the fiber ARPU behaving more longer term? Do you think it's sustainable to keep the same levels as you enter more challenging regions, do you see room for even inflation pass through in the more longer term? That will be my first question. As a follow-up question, if you could comment on the CapEx for 2021. Is it going to be already mostly allocated under the InfraCo vehicle, it will also be funded through that in that vehicle? Thank you very much.
Thank you, Maria. Well, in terms of the fiber ARPU, I believe that I touched on many of the points to your question when talking about the sustainability of the increase given not only the move to higher speeds, but to additional services. In terms of pricing power and inflation, which was the second component of your question, we obviously believe that there is always a fine balance between applying all of the adjustments according to inflation versus maintaining the growth. Obviously this is carefully analyzed on a strategic basis every single month. Just comparing fiber and fixed broadband in general to the dynamics that we saw in the past in mobile, we're obviously talking about two very different scenarios. On fiber and on fixed in general, the switching is obviously a lot more complex.
It's not as easy to just go into a store and change a SIM card. We're talking about installation. We're talking about the customer drop. We're talking about CapEx investment. We're talking about a more difficult process for the consumer, but also in particular, a lot more costly effort by the part of the competitor when having to switch an existing customer. This, by its turn, naturally puts some barriers into how aggressive pricing can be. It's obviously one thing to say, "Hey, I have a plane flying here in the case of mobile, and the seats are empty, so let's just make sure that the next ticket is a cheaper ticket so we can fill the plane." This is not the case in fixed broadband, because in fixed broadband, you still have to actually add another seat to the plane.
You have to go and add the ONT, which is the customer device. You have to build the customer drop. It's not as easy to go to pricing war, so to speak, on fiber. Obviously, this helps not only protect a little bit the pricing in the overall market, but it avoids pricing wars, and it helps to pass through some of the inflation. Obviously, this is a market that is still growing. We believe that there's still a lot to be done in terms of pricing models, but we see it less subject to all of the very sharp fluctuations that occur naturally in mobile. It's a more protected pricing environment. On the CapEx front, yes, every year we do have a greater allocation of CapEx to fiber as a whole.
In our case, we do have a higher number of CapEx going next year to the infrastructure company setup. Let's remember that when we talk about the infrastructure company, we don't expect to have this closed by the beginning of the year. It's obviously at the end of the year. What we have been doing internally is we are already separating the operations, and we have different entities actually receiving the investments. The infrastructure company entity is already separate from the rest, and we're already allocating CapEx to it. This is just a natural progression from the CapEx allocation model that we showed. When we look at the over BRL 7 billion of CapEx, give or take, that we have been talking about, every year we're increasing the percentage of fiber, and next year will be no different.
Let's remember that all going well in the competitive process for the mobile sale at the end of the year. Next year, we'll have a different year in mobile. We're also obviously going to invest in mobile because we need to keep up our speed and performance, and we're going to do that. In reality, we don't need to be concerned with actually investing for the super long term if the operation is closed. This will allow us to optimize that, moving a greater part of the CapEx to fiber. The idea is on the infrastructure company to finance as much as possible of this CapEx already with the structure of the infrastructure company itself.
There are several models that allow us to do that, even with the guarantees of the shares of the infrastructure company itself, even before we close a deal of selling the controlling stake. As such, we obviously have it already planned for the infrastructure company next year. It's also important to highlight yet another thing in terms of CapEx, which is what we're doing is not only increasing CapEx, we're also increasing the efficiency of this CapEx. Compared to when we started the project back in 2019, we have already significantly reduced our unitary prices on installation, on the ONTs, on the fiber itself, and this has been helping us to accelerate the CapEx deployment, the fiber deployment, without proportionally accelerating CapEx. This is very important. The unitary CapEx numbers are showing very positive results. Obviously, we gain scale.
We gain an important scale, not only in the overall deployments, but also with the sheer base that we have. This has helped us to be a lot more efficient in procurement. We do have that well planned, and we believe that probably, I would say a number here, close to 70%, if not more, we'll already be in the infrastructure company next year in terms of CapEx.
Perfect. Thank you very much, Rodrigo. If I may just make a very last question, can you just comment on the strategy for 5G in terms of the spectrum auction? Thank you.
Sure. As you saw, there were some very recent news regarding the 5G model. We're obviously analyzing that. There was a manifestation from Anatel yesterday. We believe that the 5G approach to us is actually very clear. We do have a view that while we do not close the transaction, so until the moment we close the mobile transaction, our mobile operation will be an independent operation. As such, we obviously will consider the participation on the 5G. We do have our plans in terms of what to do with the spectrum should the transaction close. Let's just remember that on the 5G front, obviously 5G, especially on the 3.5 GHz spectrum, is used certainly for mobile services.
There is a very good potential as well, especially if you consider some specific regions in the country, to use that spectrum to provide FWA service, fixed wireless access service. In particular, in the areas where the density to provide full fiber coverage on the retail front is still not there. There are areas where we do have fiber coming out to the cities, but it would be less effective or with slightly less positive returns. Not that returns would not be positive, but less likely positive returns in terms of actually deploying fiber all the way to the end. The 5G is an option for fixed wireless access, and we believe that we should be able to look at the auction and make our decision whether to participate and how to participate, having this into consideration.
We also believe that obviously looking at 5G, there's a second component, not only the spectrum itself, but we believe that it's positive to have the 5G auction resolved in terms of its model, in terms of its definition of timeline, which is the use of fiber itself. The speed up of the 5G deployment will help us accelerate the wholesale services of the infrastructure company. We believe that there's absolutely no way in which 5G can be deployed all over the country without using a significant amount of the infrastructure company fiber services. All in all, this is the approach, but obviously, the very recent news of the model of the auction are just under review right now as we speak.
Perfect. Thank you very much. Congratulations again.
Thank you.
Our next question comes from Mr. Carlos Sequeira from BTG. You may proceed.
Hi. Morning. Thank you for taking my questions. I have a couple, please. One is, can you give us an update on negotiations with Anatel to move Anatel's credit through the new legislation, please? Also on the same line of discussion, there is this new, another piece of legislation that the former PL 6229, which is now in the Senate. The question here is what are the benefits of this new legislation, if approved, to Oi? The second question, I'll make them together. The second question relates to Oi's mobile, the auction of the mobile division, which is now scheduled for December 14th. Would the sale be booked in 2020? If so, the taxable gains that are going to be generated by this transaction would be fully compensated by the accumulated losses of 2020, please. Thank you.
Okay, thank you, Kadu. On your first question there on Anatel credits, we're well advanced into the process. As you recall, Anatel not only favorably recognized the proposal, which was already formally submitted to the AGU, so much so that they voted in favor of our restructuring plan, of the amendment to the restructuring plan. Obviously, we are now just on the final phases of having that settled about closing the transaction. The expectation is that we'll be able to sign this transaction with the AGU very, very soon, and then it moves on to the final signature of the Ministry of Communications. We have already discussed this both with the AGU and with Anatel, and with the ministry itself. We believe that there will be no issues and that the transaction should be signed this year.
About the 6229, as you know, this is in the agenda for voting in the upcoming weeks. There was the definition of a new reporter. The reporter mentioned that, yes, there are some things that need to be reviewed. It's Senator Rodrigo Pacheco. In reality, as everybody believes that this is an important project, especially for this year, given that the pandemic has brought, unfortunately, an increase in the number of companies that have filed for a judicial recovery. There is, we believe, political will to have the project approved, if we will be a beneficial project for the country, and it should be approved, we believe, still this year. If not now, in November, we believe that before the break at the end of the year, this project should be approved.
Obviously, the project is positive because, in particular for our case, the project brings the possibility of migrating our existing transaction that is being discussed and signed with the AGU and Anatel to more favorable conditions. If you recall, our Anatel credits have been taken out of the plan and into Law 13,988 with a 50% discount and 84 months. This new condition under Law 6229, when approved, and our transaction actually allows us to move to the more favorable conditions, if approved. We would be able to actually increase the haircut to 70%, the overall discount on the debt to 70%, and increase the terms of payment to 120 months from the 84. Obviously, there will be additional positive things in terms of the 6229.
The 6229 will help all companies actually to avoid the almost absurd situation where a company under judicial recovery is actually paying taxes on capital gains, which doesn't make any sense, if obviously there is some tax credits to be used. We believe that those two will be very favorable. As far as your last question, remember that we need to close the transaction. Obviously, our projections show that when we look at just the isolated effects of our operations as we have them today, we have ample space to accommodate for some of the gain. Unfortunately, the tax credits in terms of tax loss carry forward for us is enough in the separate companies, the separate entities, to accommodate and compensate for the transactions that we expect in the short term.
Thank you very much, Rodrigo.
Thank you.
Our next question comes from Soomit Datta from New Street. You may proceed.
Hello. Yeah, two or three quick questions, please. Thank you. First of all, just back to fiber.
Soomit? I guess Soomit has dropped from the connection.
As there are no questions, I would like to turn the floor over to the company for the final remarks.
Thank you. Well, we'll make sure to take Soomit's question later on, and we will follow up with him so his questions don't go unanswered. Overall, thank you guys for another call. We continue, again, as we highlighted, firmly committed to making this plan work. We have the full management team and the full board really committed to it. We believe that the results have been good. We believe that there's still a ton of work to do. Given what we were able to do over the last 18 months in terms of delivering on the plan, we believe this will continue to be the case next year as we prepare for the final phases of our restructuring. Thank you for participating with us on the call. We hope to talk to you soon in our next earnings call at the beginning of next year.
Thank you, and have a great day.
This concludes Oi S.A.'s conference call. We would like to thank you for your participation. Have a good day.