Status Update

Mar 16, 2020

Slides

Good afternoon, ladies and gentlemen, and welcome to TIM Participa Swine's conference call to discuss the strategic plan for the period of 2020 2022. We would like to inform you that this event is being recorded and all participants will be listening only mode during the company's presentation. There will be a replay for this call on the company's website. After TIM Participa's remarks are completed, there will be a question and answer session for participants. At that time, for the instructions, instructions will be given. We highlight that statements that may be made regarding the prospect, projections, and goals of TIM Participa's constitute the beliefs and assumptions of the company's Board of Executive Officers. Future considerations are not performance warranties. They involve risks, uncertainties, and assumptions as they refer to events that may or may not occur. Investors should understand that internal and external factors to obtain particular swings may affect their performance and lead to deeper results than those provided. Should any participant need assistance in this call, please press star 0 to reach the operator. Now, I will turn the conference over to CEO, Mr. Pietro Labriola. So he can present the main emphasis of the strategic plan. Please, Mr. Peter, you may proceed. Good afternoon, everyone. Thanks for taking the time to participating in our planned update conference call. So let me comment briefly about the elephant in the room and we can move forward to the plan. Related to the COVID-nineteen outbreak I'd like to assure you that we are taking all the measures to reduce risk to our employees, suppliers, clients and both stakeholders. At the same time, we are guaranteeing business continuity for our operations, leveraging on Italian experience. Since the end of February, we've been implementing initiatives and we are broadening them as the outbreak evolves. So far, we are starting to experience some changes, but at this stage, nothing severe to impact drastically our business but we cannot discard that it may happen in the future. The telco business should have some level of resilience and considering the necessity of social distance, curriculum service could play a support role for society. Maintaining people productive in additional contact with families and friends. We are ready to serve and support the vehicle if necessary. Now, let's move to our Plana B, which will focus on Tina's evolution and transformation. Since a summary of our Climate Gardens was already disclosed last week during the group's conference call, I will make some quick remarks and then we can move to Q And A. We ended 2019 with solid results and on the right path, it's transforming team Brazil into a 4.0 take operator. I'd like to the basic mindset supported implementation of necessary adjustment. We were able to adapt the company to new reality, maintaining our DNA of innovation agility and efficiency. All of this has been translated into our financial figures, positive growth on revenue and EBITDA, consolid costs, margin expansion, maintaining solid cash flow and interest on capital distribution. It is time to move forward. We developed this plan of data in 2 major verticals, evolution and transformation. On one side, the evolution plan to further develop initiatives already in place. On the other side, transformation plan to shape company's skill over the next few years. Under this framework, we elected 6 strategic pillars for 2020, 2020 to plan. In infrastructure, for the initiative that will prepare us for the future by involving our IT Architecture platform and by transforming our network via implementation of new technologies. On the efficiency pillar, we will work to take our results to the next level with the broader set production, both on OpEx and CapEx, but not at the expense of customer experience. In our mobile operation, as the environment is changing, The focus will be on the evolution of our from volume to value approach, giving more emphasis on trend management portfolio construction, and start to increase tactics. For our Ultra broadband services, we had 2 clear pads. Wire related to the organic evolution of the business and the second that aims to accelerate the deployment of FTTH transforming the contribution of this service. As the pillar of our strategy We plan to monetize better our customer base, developing new sources of revenue on Tiaras. Internet topping, mobile advertising and financial services, which is ESG. A pillar that's 3% key that we already worked in, but not necessarily in an integrated manner. We transformed the way we approach ESG and then invest into our strategic initiatives aiming to produce a positive transformation towards the commerce. For our infrastructure, we need to activate to be ready for the future. So our plan is divided between evolution action, more focused on the short term and transformation initiative for the medium and long term. We plan to take our IP to the next level in 24 months through architecture and platforms review. Larger use of quantity system and use of big data to drive a faster net attraction rollout. On the network side, we have 5 major areas developed, coupled with the data growth by using new technology and spectrum efficiency techniques. Get the network credit for Purdue using the technology as a tool to innovate. Support fits a broadband goal with agnostic approach and converted architecture. IoT dedicated infrastructure lies in the network for service optimization and new initiatives to improve efficiency as the commissioning of all the technologies. In this new plan, we expect to continue with the shift of traffic towards 4g Metro, reaching more than 90% while improving indoor coverage with the low band spectrum and site densification. The further expansion is planned to support the mobile customer experience and team live business to accelerate its growth pace. We are planning to expand team live services coverage to approximately $5,500,000 on cash, composing 76. In parallel, our transport method should grow more than 50% going beyond 180,000 kilometres of fiber for Decor and Decor. Reaching close to 1.5 cities in the job portfolio. On the efficiency pillar, we plan to take our action plan to the next slide, Elvira continues and to review on how we operate, while announcing our customer experience. 4th components will contribute to this goal: evolution of our processes, closing debts and improving our results on specific areas. Acceleration of digital and automation initiatives, taking into consideration characteristic of the Brazilian environment. Interimitation of a new make versus buy model share focused on productivity and specialization. And the transformation led by the Smart CapEx approach in order to answer the business. The evolution and transformation of our infrastructure and customer experience improvements will help us to further develop our positioning as the most innovative operator of Brazil, while reinforcing the quality of our services. With supporting Brazil transition from volume to value in the mobile segment. As we reach a more major phase of the market with Residra Group, We divided our action in three categories, share management that is becoming a key lever for revenue growth. Merchant clients to meet using multi segment approach to explore opportunities in prepaid controller and people's pay. Share of wallet focus, looking for opportunities to generate ARPU assets with markupshel, not for more approach, and new customer knowledge capabilities. Builds above the market continued to offer growth opportunities Other penetration in Brazil is below 20% in Sao Paulo. The interest rate is below 25%. So it's important to reconfirm our strategic interest in continuing to compete in dispute, backed always with our financial discipline. Evolution for TIM Live means to expand the footprint, improving operation in client facing and the coffees activities. And maintaining our differentiated approach of ultra broadband and OTT content, performing well on these fronts will lead us to more than 50% compound rate in the next year and more than double the customer base. To transform this side of our business, we are aiming at a strategic partnership that will help balance better the equation between fixed and CapEx. The creation of the infrastructure of vehicles comes back to continue growing that fiber, expanding TIM Live Services Without to scaling significant additional CapEx, when unlocking additional value for the company. As I mentioned last week, we have started the market sound process to find the right partner to help us treat this neutral fiber company. In our plan figures, the access of this transformation project is not included. To move beyond the core, we will leverage our asset strategic partnership and takes advantage of a unique window of opportunity. We will explore 3 best results in terms of things by advertising and financial services. Internet Stockton connection will double until 2022. And we plan to serve this wave developing solution into major market, transportation and agriculture. Together, there are more than $1,000,000,000 in size in Latin America. As of today, we are already building a solid presence in the agribusiness segment through the ConnectAgro Partnership. We have more than 5,000,000 equity covered with 4G and more than 2000 cities with narrowband IoT technology. In the processing map, We closed important contracts with major players in the Brazilian Argentina sector. We can say that we are the leader in this area. On the connected car front, in the following weeks, we are going to announce an important agreement with the car manufacturer to provide in car connectivity and automation. Digital advertising is becoming everyday more and more mobile. Out of the BRL24 billion estimated for the market in 2022, 18% we delivered through mobile. You already heard from me that I think Brazil and operator had a huge opportunity for games if we managed to cooperate. Tim Brazil plans to address in two ways as a publisher using available touchpoint with Erudias. And as an uptick player leveraging customer knowledge and ownership. Today, we already generate revenue that are very tight and originated. And there's some in 2018 close to BRL 119,000,000. We see the potential to more than double the number by 2020. In the mobile financial services vertical, We see very interesting opportunities. As it is very well known, banking services are concentrated in 5 major execution. That the unbanked escalation in Brazil is estimated at around 45,000,000 people. The next transaction that accounts for more than $800,000,000,000 per year. At the same time, you need to use authentication on mobile services is significantly higher than debit or credit card. So we are planning to address those opportunities in two ways. A partnership with the digital bank under which we plan to combine telecom and banking services in a single proposition. We expect to leverage our customer base and channels to provide services to customer only the full banking offer. Another partnership, more focus on giving access to banking services to the unbanked population is being negotiated. We have a short list of partner and we expect revenues on this front in the coming months. I'm reaching the end of my presentation. Our guidance is already public and is a clear confirmation of the positive trajectory we started in 2016. We are going to face in the short term and not easy contest and the less it will last the most we will have the chance to achieve our target. So we can move to trending. On the call and afterwards with questions from the webcast platform. You. Our first question is from Diego Aragao from Goldman Sachs. Please, Mr. Diego. You may proceed. Yes. Thank you. Thank you, Peter and Tim. I hope, always well with you and family these days. So, look, my first question is related to potential M and A near term. How do you see the current situation affecting your ability to participate in future M and A. And if you can also provide, like, details on the structure in terms of financing, in particular, do you believe, what will be the best structure that you believe could maximize the value for shareholders? I guess, that's my first question. Thank you. Hi, Diego. This is Vicente. Thank you for your question. Thank you for your concern as well. We hope that you and your family are right. From our side, we are all well. The first question that you asked will be taken by Pietro, and then Adrian can elaborate. Thank you again, Diego. Hi, Diego. Thanks for your question. We were discussing about the possibility to have the consolidation. And we were waiting that something could be a trigger to start. So finally, with what we communicated last week, this figure started. Related to the way to finance I think that we have to reiterate was, was mentioned by our group CEO, which has the policy, but during the last conference call last week, He told that it would support our development in Brazil, and, respecting the financial the target of the group, you see that there are rooms to allow to fully proceed. About the timeline of this process, I was reading this morning, also some record that we're discussing about the possibility of editing confirmed by the end of December. Now what is important to understand is that the actual situation, if cannot some impact in terms of, small delay about this process. But, I leave the stage warrant to elaborate more on that. Thank you, Pedro. I will talk regarding the financing. So the second part of your question, obviously, it's probably too soon to say that, you've been following us in the last 4 years, And the fact is that the company has been preparing to reach this moment. And we've always said that we were working on our, structure in terms of financial financials in terms of of assets, everything, to arrive to a moment like this, fully prepared. Of course, now we have some uncertainties that would allow the last events, but, just to tell you that before this couple of weeks, the, the situation in terms of financing was extremely, positive for making everything locally and free cash. Of course, we always have in mind the possibility, but for the group, but I think there's a deal of this kind could be, could be mitigating in terms of impact of leverage with a lot of different alternatives. So, we are confident, on going forward with this deal. We'll see what happens, but we think that, we'll have no problem on the financial side, financial side, but then of course, we need to understand the evolution of what we presented to our and obviously always having in mind that OI, it's under recoupit ourselves, Mauricio, so kind of chapter level process. So but again, we are, we're confident that we do everything by looking close this year. That's, that's very helpful, thank you, Peter, and Adrian, for this. I guess my second question is related to your business. Can you help us walk you through the main risks you see in the near term, if the current situation would proceed to, I think, in the coming weeks or months, I know that, you know, it might be, still, tough to to address, but it will be great just to get your thoughts on this. And aside of, the COVID-nineteen outbreak, if you can also provide some colors on some of the new initiatives that team is taking more recently. And some of the opportunities for someone like you, as a pure mobile player, could eventually capture new source of revenue, going forward. Thank you, Diego. And so let's talk about the same situation. First of all, it's quite clear to everybody that our major holder is Tim Italia. And perhaps they were among the first player that, were obliged to try to understand how to face this situation. So when we discuss about business continuity of our company, you are, exploiting the opportunities to use procedure and the solution that in the last 2 weeks, typically put in place. So all our, structure are in contact with the, the Italian team to try to exploit all the best of what they are doing. It will allow us to accelerate the learning curve. I'm personally managing the business community committee that has a a meeting per day because in this way, we want to follow on a daily basis the evolution of this situation. We already started to take some, decision related to the healthy of our employee. And, we are following the all the old and we are putting in place all the measures that will be necessary to live on a safe side, our employee, our supplier, And we're working also to understand if there could be any kind of issue related to the market evolution. So about the business continue to our company, we are working on that and we are leveraging the Italian experience. Related to the market, in the last 2, 3 days, first, it's important to use some statement on that, but it's clear that it's too early to understand what can happen. Also, because the situation, also trying to, to get the experience of other countries If I look at the Italy, Spain, France, Germany, U. S, we are facing different situation. In the last 2 or 3 days, what we are experiencing is a reduction of the twelve people in the a big molar, and, they can have some impact in terms of acquisition. But I think that it's too early to define what can happen. What is important that, what we did with the last 3 years to work to improve our, customer satisfaction and child management can be a defensive strategy that can help us to to face the challenging that can come from this situation. I repeat, it seemed too early to understand what can happen, but we are looking at the different area that can have some impact. For example, roaming the debt in any case on our revenues, it's, it's really small, but in any case, it will be, EBITDA neutral. So I think on the market, it's too early. What we can expect is a reduction mainly in the subscription and or in the amount of net debts, they could come some opportunity because from a certain point of view, I think that not only team or the telco player, but all the society will be forced to move towards a more digital environment. And in the medium, long term, it could allow to have also, leaner company in terms of cost. We are putting in place in these days, several activities to reinforce all our digital capabilities both on the marketing side and on the IT side to face a possible situation that could become quite similar to the European 1. So, I repeat, it's important to remember that in this situation, perhaps, telco, the telco business could be more defensive industry compared to the other, because in such a situation, they need to communicate and to be in touch, with all the other, with the friends, family, and so on. Will ask for more communication. But I think that if we have some impact in the medium long term, we will come out stronger than before. I hope I answered your question. If you need some more details, please. Yes, that was great. Thank you, Pietro. Our next question is from Leonardo OMO from Bank of America. Please, Mr. Leonardo, you may proceed. Hello, everyone. My question is regarding capacity in the net eventually, we see a relevant increase in usage capacity. There is a great team of increasing the OpEx. And if you could give us, an idea of how much of hydro capacity you have, how much more infrastructure you have without the need to further extend the CapEx. I'm talking I've talked with you about 2020, eventually growing up with us and your partnerships on on physics. So I'm talking at CapEx for this year and next years with some eventually some disruption or increase usage of capacity. Thank you. Hi, Donna. This is Vincent again. Thank you for your question. We'll, be passed the question to Pietro so he can elaborate a little bit on your points. And then, also, Mister Leon has captivity can can also I speak a little bit about the the situation related to capacity. Thank you. Again, I don't want to repeat, we are looking also at what is happening in Italy to understand that the outcome change customer behavior in a factory situation. From this early stage in Italy, what you understood that what is happening is that it's changing the curve of the user. So compared to the past, what is happening if people are starting to use more, also during the morning hours and the after hours the network. So if the behavior of the customer will be similar to what is happening in Italy, I think that, there's no particular issue, then, Leo can, elaborate more on that. Leo. Thanks, Basil. Let's see. Are you talking about what we are facing right now and for, 2020 and ahead Now what we have discussed with our colleagues in Italy is that, there was there, big incremental traffic only fixed, around 100% and a mobile something around the 20%. But The good news is that at least 20% of our new traski was not generated in a peak but it is, let's say, spread all the day. And in fact, we have to be concerned on the network side for the peak. So, what it means is that probably we will not see, let's say, any kind of emergency in a short term for this new environment of the after we are facing, but we are focused to see what is happening in the vaccine, site by site. When you're talking about, a quarter, let's say, what we are seeing is that now we are working with new technology, to face this challenge of traffic explosion. If you asked me 1 year ago, what, what was our, let's say, scenario it was most focused on the site densification and the new spectrum. Now the news is related with the massive MIMO. Also, we explained that this is a new technology that allow us to have a 3 or 4 times more capacity on the same site using the same spectrum, specifically for 4G. So, it is, help us to have a more accurate progress for capacity on the network. Because we don't need to, let's say, install this massive mining, all the network, but a nice mark CapEx concept, we can be acting in the part of the network that requires this kind of increase of capacity. And that probably will help us so much on the next 2 years. And after that, what we expected is the, beginning of the transaction from 4G to 5G. And then the new spectrum data probably will came for, the new auction spectrum that Anatel is moving and sometimes the opportunity of M and A. In Resume, we are not seeing, in a short term, any kind of, concerns because we have this technology to be applied to increase the capacity. And for me, the long term, we are seeing a very favorable way, the new technology and the new let's say 5 g and in the new spectrum. Perfect. Yeah. Thank you. That was very helpful. Our next question is from Marcelo Santos from JP Morgan. Marcelo, you may proceed. Thank you. Thank you for taking the questions. Good afternoon, Pietro, and everybody. My two questions are First, on the margin outlook, which you expose a potential for margin increase, could you please comment on the moving parts like the the margin detractors, the parts that will help you to increase margins and just explain how they sum up together. A little bit more color there would be very helpful. And the second is the readiness of your mobile network for 5G. If you could make a few comments like how are your towers connected with fiber and other data points that could be interesting to understand this readiness level? Thank you. This is St. Again, Marcelo, thank you for your question. I will be passing the question related to margins to Pietro and then 5g to Leo. Please, Pietro, can you answer me Marcelo? Thank you. Hi, Marcelo. So related to the margin, it's clear that the improvement that we led compared to the 2019 it's mainly due to 2 assets. The first one is related to the increase of the revenues because with our target, we are planning to close higher than 2018. And, it means that the Delta revenue doesn't come with, all variable costs. I'm sure there's a part of that, but it will allow us to have also in, let me say, marginal way and higher level of margin for these new revenues. Then on the cost side, every year we see both of the same question, a solid company's team, how can, further improve the cost level and so the marginality? This year, we tried also to define, in a better way the area on which we're going to work. So we define for different area, and we let me discuss more and more in terms of, cash code that, no, not not only cost. First of all, we have defined error in reach. Or by external benchmark or by internal benchmark. We think that we are underperforming. So I don't say too high to you, but for sure, we weren't happy about our performance in 2019 related to bad debt. So this is an area where we can recover marginality in a comparison year over year. Then there are some other areas as the mitigation for, labor and, consumer mitigation. That in the that, let me say, we can manage in a better way. This is the 1st cluster. I'm not going to list to you all the area, but with that and with the team, we define only. The second is to continue with our digitalization process. We have to continue to increase the amount of sales on the digital channel, we have to increase the penetration of digital bill where to increase the penetration of digital payment, where to increase all this kind of activity. And many try also to includes the level of digitalization of internal process. And this is the 2nd class. So the first one was benchmark, the area where we are, the benchmark. The second is to continue our digitalization. The field area is more related to the possibility to do some, make or buy decision. Here, I'm not talking about the classic approach of outsourcing. There are some area and some activity that are not necessary core for our business and our day to day activity. And, there are some internal back office that can have huge margin of improvement. How? Not outsourcing the activity and the people, but looking for partners that are well trained specialized in this area that can exploit artificial intelligence, solution to allow to have a further improvement and efficiency of in this area. Let me try to do an example. On our legal department, we have the coverage activity to manage all the litigation. Part of that is made in Germany. But, if we try to develop in Germany, artificial intelligence tool to manage and to improve this area. It will take a lot of time and we have to learn something that is out of our core activity. While we can find externally a company that are specialized on this kind of activity that can come to us with their technology and their methodology and allow us to improve and create new efficiency. And this is the Terjeira. And, the the last one is the part that is that we have defined as smart CapEx approach, that it's not only related to the OpEx, but also to the CapEx. The project of TIM Live, the MOU with Vivo, the use of new technology as Maximo, are all activities that we are putting in place to improve our cash cost profile. So these are the 4 area that we are focused on. And during the year, we will be able to give you more details about that. Depoy, and then the second question was related to the 5 g. I related the to the 5 g, we are working to be ready for the first g. Also, if for the moment, it's not completely clear when it will happen. But what is important, I think that, there's more a matter of industry and country. 5 g is something that can be achieved. If as a country, we will be able to solve some issue. The 5 g managed engineers increase sometimes the number of antenna. So it means that you have to find a way in some state. To restore new antenna. So now I leave the stage to Leo to elaborate more on the technical part of our network, but 5 g means a moment of your counting. In the last weeks, and, I'm looking for and more current approach on this side, but we'll see going ahead what will happen. Thank you, Pedro. Marcelo, let's see. If he we're thinking about the 5 g, I guess that, three elements are very important for that. The fiber to support the connection with the sites the core that has to be virtualized and the third is the access. In this direction, all our investment that we have planning in the last 3 years, our focus in the north to prepare the network for the 5G. So if you're talking about the fiber, the first one, we can see on the numbers in the entire interest to observe that, let's say, the main concern that we had was the catalytic of our backbone. So in 2017, we have 450 Cities coverage by fiber. In 2020 this year, we will finish more than 1006 reached by fiber. And in 2022 is in our plan, we will achieve 1500 Cities reached by fiber. And the second one is the backbone in the fiber. We this year, overpass 100,000 kilometers of fiber. And we have the fiber to the site where we have more than 90% 90% of the size server directly by fiber on the main seats, like Rios, Sao Paulo, and Curiciva. So This is the first priorities to serve all these infrastructure with fiber. The second, about the, virtualization of the core. In our plan, we are, reaching more than 40 new, what we call the network data center spread across the country to serve the new kind of neutralized and softer for the core, and it will be very, very important for the 5G to use the low latency aspect of the technology. And the third is the access. Talking about the access, in fact, we have 2 waiting for the spectrum auction to decide what kind of spectrum we will deploy on our network. But, all the common part that we call the BBU or the core processing on the access is already ready for 5G. Since 2018 is part of our specification that every side that we move on the network, new or modernization. This part of a common plot form has to be ready for the 5G. So, we have to wait in for the, let's say, expecting result but a part of the work has been done in this direction to prepare the network in a more, let's say, agnostic approach to be prepared for Our next question is from Diego Agao from Goldman Sachs. Diego, you may proceed. Yes, thank you. No, just just want to follow-up on, on my second question related to new business and new initiatives. If you can just provide your views and your takes on how we should be thinking about team playing in this environment? Thank you, Diego. I apologize that I didn't answer, before to your question. So, we are working on, as I stated in the in my speech, Montreal, in terms of things. We are our point of view that compared to other players that today are trying to play the game of all the IP value chains. So they're offering fixed mobile IT services to all the company. We think that we must be very focused on internet of things on mobile. Trying to exploit better the flexibility and our DNA of, a pure mobile operator. So we are focusing on this area and, the way in which we are active there, is, it seems at least up to date successful because today, we are the leader in the agro business segment to supply, not only connectivity, but also solution for a sector like the agricultural 1 that is, one of the of the trade of the, of the Brazilian economy. Then by opportunity, always on the internet of things, as I mentioned, we are going to announce a deal with one of the main, car manufacturer. We cannot disclose yet, but it's something that will happen in 2, 3 weeks. That it's, it's another confirmation that the path and our strategy on internet of things is the right one. Then I don't image that, this strategy will give to us huge result in terms of revenue in the short run this year. But it's really important not only for the next year, but in a view that is 3, 5 years. Then let's move to the mobile advertising there. And we are it's quite because, without the go to general statement about update and the possibility that we can act as Facebook or Google. Let's start from the basics, which is, from your point of view, the service on which you will never bet for a tech operator. I think that you will mention SMS because none of us is imaging that it is possible to continue to make money on SMS. While if you look at your daily life, this is one of the services that is used the most. All the bank use SMS to send a one time password to access to their application. The same OTT when you change the answer to the confirmation that it's not a fraud, they ask to send an SMS. So, we are reevaluating the use of SMS as a tool of communication, some way of of of, And this is one of the era where we are growing the most and to understand the that it's quite easy. Let's look at your daily experience and the SMS that you receive, not for, broadcast advertising, not for bills of application, either banking system or, the the same OTT went there to download again the application, or if you use an application for full delivery, you change your mobile. So this is another that will give us in the short term good result, and it is also the fast growing one. Well, at least we'd want to discuss about always mobile advertising in the medium, long term. I think that we can become a kind of Facebook, Facebook, and Google on the mobile app as it said. Helping everybody putting the a disposal of the customer the profile the profile of our customer always inspecting the lgPD, so the new privacy load. This is another area where I think that as industry, we have to cooperate among the operator because the publisher, usually, don't want to buy the possibility to advertise something to the team customer base. They want to advertise something to people that are working the on the Panama Beach or people that are, older than fifty years old, some and so forth. Then if you look at the amount of information that has take operator work today, it's huge, and we never explore it. The other question could be, and you could ask cash, cattle, but how many CapEx do you need to put in place this kind of new business. Marginal. Leo is working since a lot of time on our big data. That will be always more in the cloud since a lot of times. And Alberto is already using a lot of this kind of information to do our activity. So experiencing the huge capability that this kind of profiling give us. We are intending that this is something that can be sold out with a specific CapEx increase. The last is related to the financial services. On this area, I want to be built here. We don't want to become a bank. Bank. It's a it's another industry with a lot of compliance, and, we must be focused on our business. So we will work in one side on one side trying to find a partner with which we will offer to our customer base bank, financial services. And so it's another way to monetize our cuss our customer base and to differentiate our offer travel to compete with the other player just on the matter of the amount of Giga that you put in your plan. On the other side, that is the lower part of the the prepaid. Today, just to give you a number, on a monthly basis, we between BRL400 1000000 to BRL700 1,000,000 that are transformed from cash in digital. And they are put in our recharge. In our mobile asset. So what is needs to transform this recharge in the front of wallet and allow choose that to buy something on the beach or whatever you want, it's a small step. We are looking also at what is happening in some country in Africa. Where there is something that, is accelerating there and can give us the opportunity as industry because this is another element another area where we have to cooperate with the other players. We give us another important level of stickiness and also the possibility to avoid in the future, they need to compete just in, in the amount of giga that you put in our, pricing plan. I hope that this time, it was, detailed and active. If not, don't worry. Tell me. Yes. No. This was, very detailed and, and very helpful. Pietro. Thank you for this. Our next question is from Maria Theresa Zivedo from Santander. Maria, you may proceed. Hi, everyone. Thank you for the call. I would like for you to elaborate a little bit more on your strategy to unlock value from your fiber assets. I mean, how do you see this neutral network building out? Would you considering selling parts of your fiber network how do you see the regional ISP providers and what kind of JV and infrastructure funds are you thinking about? That's it. Thank you very much. And please keep safe. Hi, Maria. This is Vicente again. Thank you for your question. Adrian will be addressing your topics. Please, Adrian, go ahead. Hi, Marie Theresa. Yes, regarding our TD Live project, this It's reentered to, increase, our deployment on fiber to the home. Without affecting significantly our CapEx level. As you know, today, our our team live revenues account for, something around 3.5% of the total revenues. But at the same time, they have a big contribution to the growth of our revenues, almost reaching 1%. And then at the same time, the CapEx that we are doing today for this kind of service are around 10% of our total CapEx. So today, you can find some kind of misbalance between the revenues of the total revenues and the capital revenues. While we are looking with these, with these new project is to allow us to continue to deploy fiber through a neutral vehicle, introducing a partner on this new company. This is something that we will be carrying on this year. We already engaged an advice on this side. We are starting our phase of marking sound, which is important in order to define specifically the per unit. We are talking here of all the Jasma, we need to understand better if we can introduce the installation, So, I think that this would be an interesting project. We can also unlock additional value with this project. So you will hear more on the following orders about this. Hopefully, we can close this, this project yet this year. Thank you very much. Ladies and gentlemen, without any more questions, I'm returning to Mr. Pietro Labriola for his final remarks. Please, Mr. Pareto, you may proceed. Thanks again for participating in our conference or also in this strange situation. This plan will take us to the future with solid fundamentals. We will use more digital means of interaction to keep the communication flow with the financial community. For all of you, be safe and healthy. Don't forget to follow the procedure provided by the authorities and hope to hear from you soon. Thank you. As we conclude this strategic plan conference call of TIM Participa Suisse. Your line can be disconnected from For further information and details of the company, please access our website, ri. Tim.com. Br. Thank you.