Hello, I'm Vicente Ferreira, Investor Relations Officer of TIM Brasil. Welcome to our earnings call.

We will review our recent results and the evolution of our strategic plan, then open the floor for a Q&A with CEO Alberto Griselli and CFO Andrea Viegas. Before we begin, please note that management may make forward-looking statements.

Please refer to the disclaimer on the screen and on our Investor Relations website. Now, let's review our results.

Hello, everyone. I'm Alberto Griselli, CEO of TIM Brasil.

In early 2026, we prioritized execution amid rising external volatility and increasingly unpredictable conditions in Brazilian telecom. The year began with relevant M&A activity, preparation for a spectrum auction, and new below-the-line offers among other minor news.

Despite that, mobile remains rational in broad terms, so much so that operators were able to recover inflation during these first months of the year. For TIM, clearly outlining our priorities has been essential.

We aim for disciplined growth and cash flow generation as we advance our strategic initiatives. To summarize, in first quarter '26, we finalized the agreement with V8, are close to completing the I-Systems deal, rolled out our annual mobile offer updates, enhanced our new B2B approach, and consolidated our broadband recovery.

On top of that, the first quarter confirms our consistency of our financial performance and strengthened TIM's long-term foundations. From first quarter '26 financials, I want to highlight service revenue growth of 6.5% year-over-year, driven mainly by mobile and supported by continued improvement in fixed.

Mobile service revenues grew 5.6%, confirming the resilience of our core business. Profitability also evolved positively.

EBITDA grew at a solid pace, and EBITDA after leases increased 7.8%, reflecting efficiency initiatives and disciplined cost management. At the same time, operational cash flow grew 16.8%, reinforcing the strength of our cash generation.

These results reflect consistent choices around commercial discipline, cost control, and capital allocation. To provide further insight, let's discuss our recent mobile performance.

Postpaid remains the main contributor to growth. In the quarter, postpaid revenues increased 7.5% year-over-year, supported by customer base expansion and disciplined monetization.

We continually adjust our go-to-market strategy to achieve balanced growth and profitability, attract suitable customers, manage churn, and offer sustainable propositions. In prepaid, revenues are still contracting year-over-year, but since a part of this loss is self-inflicted by pre-to-post migrations, we see for now stabilization in the pace of decline as a good news.

We continue to work on prepaid offers to better monetize them while improving the customer journey. Our 3B strategy—best network, best offer, and best service—continues to drive our consistent performance in mobile.

In best network, we are advancing network swaps in Brasília and Belo Horizonte, modernizing over 1,400 sites and benefiting 3 million customers with upgraded 5G. These upgrades improve capacity, quality, operational efficiency, and strengthening the foundation of our mobile business under an AI-supported network.

Under best offer, our Big Brother Brasil sponsorship supported brand engagement and commercial traction during the quarter, translating visibility into tangible business impact. In best service, the Meu TIM app remains central to our digital strategy.

The app reached 18.4 million monthly unique users and expanded its role in customer interaction, sales, and recharges, contributing to a more efficient service model. Our 3B strategy will continue to be developed to deliver results in the mobile core, while we also seek new revenue opportunities through partnerships.

At the end of the quarter, we closed a partnership with PicPay, the third largest digital bank in Brazil, marking our return to financial services through an ecosystem-based model. This partnership brings together two strong brands and massive reach platforms to build a unique value proposition for clients, with the potential to create significant value for both companies.

PicPay brings scale with 67 million accounts, R$550 billion in consolidated TPV, and strong engagement in digital payments. By joining forces, we aim to enhance customer engagement, increase interaction frequency, and create cross-selling opportunities through simple, fully digital journeys, ultimately delivering a more complete and integrated experience.

Next, I like to turn to broadband and share recent developments. In first quarter '26, the fixed business continued to show operational improvements.

Revenues were up for the second consecutive quarter, supported by ARPU growth and by fourth consecutive quarter of positive net additions. These results reflect better execution, improved sales quality, and a more disciplined commercial approach in selected markets.

If broadband is a game of consolidating our recovery, B2B is about acceleration and delivery. As you all know, B2B has become a key pillar of our strategy to diversify revenues and expand beyond traditional connectivity.

Our focus continued to be on connectivity-led solutions, particularly network as a service and IoT, across verticals such as agribusiness, utilities, logistics, and industry. In the quarter, contracted revenues reached approximately R$1.1 billion, representing 30% year-over-year growth.

This performance reflects both new projects and the scaling of existing contracts, supported by our capillarity, technical expertise, and disciplined execution. A relevant milestone this quarter was our partnership with Axxia.

Together, we will implement the first hydropower plant in Brazil with 5G connectivity. This project illustrates how advanced connectivity can support safer operations, higher efficiency, and new digital use cases in critical infrastructure, reinforcing our position in utilities and energy.

Another strategic step was the acquisition of V8. This transaction adds capabilities in cloud, data, analytics, and digital solutions, along with strong relationship across corporate accounts.

By combining V8 expertise with TIM scale and connectivity assets, we expand our ability to deliver more integrated solutions and accelerate cross-selling opportunities. Since we are talking about technology, I want to give you an update on our artificial intelligence initiatives.

Our AI program is becoming increasingly more transformative for the company, changing the way we do our daily activities, the way we hire and manage our people, and the way we plan and roll out our products. We are adopting agentic AI and other AI-based solutions across the organization to run a range of tasks with varying levels of complexity.

Productivity gains are becoming more pronounced. Early results in areas such as IT shows gains of above 20% in software development.

Faster cycles, lower IT costs, and improved system performance are supporting the first stage of a long-term transformation. Additionally, we are expanding our partnership with Google and Microsoft to deploy AI solutions across the entire organization while managing token usage through FinOps approach.

Looking ahead, our priorities remain clear. We will continue to strengthen our mobile business by improving network quality, evolving our offers, and enhancing service, while expanding our ecosystem through partnership.

We will sustain operational improvements in broadband, and in B2B, we will continue scaling capabilities through connectivity, digital solutions, and V8 integration. The first quarter of 2026 demonstrates our unwavering commitment to progress, innovation, and disciplined execution.

We are building sustainable value step-by-step, and we are well positioned to seize future growth opportunities. Thank you for your continued trust and support.

Now, let's move to the live Q&A session.

Hi, everyone. Thanks for taking my questions.

Two on my side. The first one about V8 Tech and B2B in general.

What could we expect on this line in terms of growth going forward? Just a consultation, is this line already embedded in the guidance for the year?

In general, how you're thinking about B2B, both organically or inorganically going forward? The second question, if you could comment about margins, okay, how you're seeing the pace of margin expansion going forward.

In the quarter, we've seen some headwinds on OPEX. If you could help us separate what are the recurrent effects from the seasonal or one-off effects, maybe roaming costs, maybe renegotiation of contracts with tower companies, it would be very helpful.

Thank you.

Hi, Gustavo. Thanks thanks for the question.

Let me address the first one and then I will hand it over to Andrea for the margin expansion. When it comes to our revenue growth, as we outlined in our strategic plan in the beginning of February, we got three vectors to support our revenue growth going forward.

We got clearly the mobile core business, the broadband expansion, and the B2B expansion. The B2B expansion the B2B vertical has been growing overall over the last years at a double-digit rate.

Clearly, our base is relatively small within our total revenues, but the growth has been going forward at a double-digit rate, and we expect this to continue in the coming quarters. Clearly, this year, we have the we finalized the closing of V8 in January, and therefore we have the the V8 contribution starting in February.

We have around 40 million already in our numbers for February and March this quarter, and V8 is also on a growth trajectory, and so we expect to contribute to the double-digit growth, but on a larger base. To your question if this is included in our guidance, yes, the answer is yes, it is.

Gustavo? If it's clear, then Andrea can address the margins for you.

Yes, very clear. Thank you.

Hi, Gustavo. Related to the margin, this quarter we have some pressure in OPEX, as you see.

We have two major impacts. One is in the inter- interconnection.

In the connection, we have two impacts. International roaming, that's a seasonal impact.

We always have this in the first quarter in our in our interconnection costs. This quarter is the higher one.

The second is the in providers. Providers, we mentioned before we launched the Controle plans with the stream in the beginning of the last year, and the the cost is a result of the growing of these plans.

The second impact is in bad debt. Bad debt, we have a higher level than the previous quarter.

We have more pressure in the bad debt. This is related even to B2C also, and to B2 B2B, a consequence of our macro environment.

For the second quarter, we expect to continue the the pressure especially because we have a price-up in the first quarter. Related to the towers, ATC, as we announced the the last quarter, we have this renegotiation with American Tower.

The renegotiation impacts several several lines. Was a structural negotiation.

We're talking about more than 8,000 towers and more than 40 contracts. One of the impacts We have impact in reduction of our debt, reduction of the lease, we also have a change of the rate.

We have several impacts. One of them is a one-off in this quarter is related to the deferred deferred revenue, but is in other expense.

When we sold the tower our towers to American Tower, around 4,000 towers, we received 900 million reais. This this gain was deferred during the period of the contract, around 20 years.

When we renegotiation with American Tower, this contract this contract related to this this sold also was included. This period was reduced in about 2 years, in average of 2 years.

With 2 years less, we have the positive impact of less time to defer this gain. This is the impact that we have in this line, other income.

We have another impact in the lease, another positive impact in the lease referred to incentives. As I mentioned, we have several impacts to relate several positive impacts relate to American Tower.

I'm sorry that was a a longer explanation, but I I don't know what it was clear,

but

Gustavo, if I can add one point in terms of margin expansion. Clearly, we are going to expand our margins in the coming quarters.

You have, as Andrea said, something seasonal, something that is more related to the macro environment or the price-up like bad debt. At the same time, there are a number of initiatives that we are working on leases and on costs to keep optimizing the productivity of our company.

Thanks for the answer. Just a follow-up if I may, related to how we could think about our margin impact coming from this consolidation of V8 Tech, assuming different margin profile, potentially more dilutive than the overall connectivity business.

Is that correct to assume?

Yes, it's correct to assume. V8 is dilutive.

It's not coming with an EBITDA margin like the mobile business, but it's accretive on the bottom line. At the end of the day, on the EBITDA margin, you have a dilutive effect which is specific of the business.

Your assumption is correct.

All right. Perfect.

Thank you all.

Hi, guys. Thank you for taking my question.

From my side, I have two questions. The first one is how do you perceive the current competitive landscape in mobile?

The second question regards fiber. Your fiber results have been improving sequentially.

Would you consider M&A or JVs to accelerate growth in this segment? How do you see the current environment in terms of M&A deal opportunities?

Thank you.

Let me start with the competitive landscape. The competitive, Luis, landscape, it's constructive and on a above-the-line broadly rational.

Of course, there are a number of discussions, because this rationality, it goes up and down. There was some let's say noise in this first few months of the year, but overall, it's remain rational.

I think that there are a couple of milestones that happened already and some that needs to happen. The first one that I think it's as a good development is the price-up in pure postpaid in the front book.

Just to remember everybody, the pure postpaid remained roughly unchanged during the course of 2025, with exception of one competitor increased it and two of us didn't do it. It's good news that this year, a few weeks ago, we increased our entry price and clearly all the other plans of around R$10.

We moved from R$120 to R$130. One of our competitors already implemented the front book adjustment, I think, in February, and the third one moved along a few weeks ago, also moving the entry point from R$120 to R$125.

This I think it's a good message in terms of market rationality and it's above inflation in general. When it comes to the next milestones to look for is the Controle, the hybrid plan.

The hybrid plan is something that we did last year at around June and we are assessing to implement this again this year for the third quarter, let's say, in a safe mode in terms of hybrid plan. We would expect that it's something that everybody is considering.

I've got a positive outlook in my mind related to this. On prepaid, I think that we are considering a number of options to make it balanced, because if you move up Controle, then there is something to be considered to be done in prepaid.

Something is already being implemented on our side below the line, and we are looking at opportunities to do this in a more-for-more approach on the ATL front as well. This is for the competitive landscape.

If it's okay, Luis, I will move to the other one.

It's

okay.

Thank you, Alberto. Okay.

When you move to the fiber, I think that our priority now is to come to the closing of I-Systems that is pretty close and the integration of I-Systems in our operation. This will further support our organic plan because we're going to have control of the network in some key markets like Rio de Janeiro and São Paulo.

This is a short-term priority related to the fiber. The incorporation of the I-Systems deal that is going to close pretty soon.

In terms of nonorganic, I think that here the question is, yes, we are analyzing opportunities. It's a mixture between strategic value, commercial value, and the impact on our all P&L and the cash flow projections.

We are looking for an accretive deal if this needs to happen. We are assessing, but there is nothing defined yet.

I don't know if Andrea you want to add something on broadband? No, it's okay.

Luis, good for you?

Yes. Thank you.

Very clear.

Hi, everyone. Thanks for the opportunity.

I have two questions from my side. The first one is related to AI.

It called our attention the focus of your speech in the potential profitability expansion coming from AI and the opportunities in terms of growth in the report. Can you please elaborate more how we should think about the opportunities coming from AI going forward?

The second question is related to the PicPay partnership announcement. Can you please elaborate more on how should we think about this partnership, what is the opportunity here, and the potential going forward?

Thank you.

with the PicPay and then we'll hand it over to Andrea for the artificial intelligence in general productivity. PicPay is a partnership that fill a spot in our customer platform strategy related to the combination of telco and fintech.

As you guys all recall, we already had an initiative that has been running for years with a previous digital bank. We consider that as accretive to our revenue and cash flow generation.

That was an equity partnership. The PicPay differs in the fact that we are in a different phase of the market, and the partnership is commercial.

The idea is pretty simple. We want to create a value proposition for our customers and PicPay customers that is better than the stand-alone value proposition, and cross-upsell our customer bases, generating revenue growth or commission payments, and loyalty, because we know that when we cross-upsell different packages to our customers, they tend to be more loyal.

This is proved. At the same time, to develop lower customer acquisition cost channels for PicPay to cross-upsell on our customer base and vice versa.

This is the idea behind the partnership. We're going to work with the two different brands, and so we associate the brands in the value proposition to our customers.

We are looking for a commercial launch in the third quarter of this year.

Hi, Maria Clara. Related to AI opportunity, as we are working for the past 2 years.

Now we are expanding the adoption of AI, rolling out to agents in the key verticals. We define two priorities: call center and network operation.

Network operation especially in the part of maintaining. Also we are using agents to help some staff parts like legal areas, human resources, also the fiscal area.

We are now starting using agents also to collect. We are seeing the benefits.

It's not a game changer, but we are seeing positive impacts. Our expectation is that this continuous to improve and improve our productivity.

We are doing with very careful because all these initiatives needs CAPEX, and we only side the initiatives when the counts proves positive. It's why I mentioned it's not a game change, but is a continuous improvement in our productivity.

I don't know, Alberto, if you want to

I think it's okay. It's okay.

Unless Maria Clara has some follow-up questions.

Yes.

Very clear. Thank you so much.

Hello, Alberto, Andrea, Vicente, Luisa. Thanks all for the opportunity.

I have a couple here. First one, inside the other operating expenses and revenue line where you recognized the gains with American Tower, there is also higher legal provisions of R$115 million this quarter versus an average of 55 in the past couple of years.

If you could please talk about the potential recurrence of this incremental provisions and the reason for that. Second question is regarding leases.

Is there a strong potential for further lease renegotiations going forward, or most of that has been done? If you could also say, for example, American Tower, all the contracts have been renegotiated?

The same for IHS. If you could talk about that.

Also on leases, there is an incentive included in lease payments of R$66 million this quarter. Will that amount remain over upcoming quarters, maintaining the level of lease payments, or is this one-off and linked to quarterly renegotiations?

If you could also talk a little bit about this recurrence. Thank you so much.

Rogerio, let me start with the leases with a general view, and then we'll pass to Andrea for incremental information on the leases and the other question. When you look at the leases, basically, we are working with three main approaches to keep optimizing our cost.

Remembering that the cost, they suffer an increased pressure that is coming from network expansion and inflation. In order to control this driver of cost increases, basically, we are working on three different approaches.

The first one is the renegotiational approach like the American Tower one, the deal that we closed with them, the renegotiation that we finalized with them. The second one is the IHS that you mentioned whereby basically we go on a make versus lease approach.

The third one is sharing with other competitors. What is the status on each one of them?

When it comes to the negotiation approach, we finalized the negotiation last year and the benefits are appearing from this year onwards. We still have a couple of negotiation ongoing with other partners.

This will be information that we'll release in the coming quarters if we manage to finalize the negotiation, and the impact is going to be similar in logic to the American Tower one. The make versus lease approach is going to be implemented over time, and therefore we substitute leases with CAPEX, and the overall economic analysis, it is positive for the CAPEX one, and this primarily is going through the objective of towers in area where a tower company have less interest because there is less ability to have two tenants like, for example, some of the regulatory coverage and the B2B segment.

We also develop an ultracost solution that optimize our CAPEX investment. The third one is the more medium-term approach that is related to the sharing, that we are discussing with one of our competitor.

We did some progress, but we can enlarge the scope of this agreement both in terms of number of competitors and the scope within the competitor we are working with. I would say that this is going to kick off more in the medium term because it needs time to be executed, because basically you need to optimize and move electronics from one tower to another, it takes a bit more time.

This is for the general approach in terms of lease control management.

Hi, Rogerio. Complementing the lease information that Alberto said, we have a one-off of 65 million payment in lease.

This is also a reflect of ATC agreements, as I mentioned before. We have several impacts.

This is a one-off and was in this quarter. What we have with ATC that is recurring is a downsize in the lease that we have with them.

This will be a recurrent impact. Considering the other income that you asked, we have a positive one-off that was ATC also that I explained was the deferred revenue, and we have some impacts also a impact in the provision, a provision increase.

It's a normal course of analysis that we have, and also is a one-off. You can expect that in the second quarter, we will return to the path that we normally have.

I don't know if I address That's very clear. Thank you so much, all.

Hello. Thank you for taking my questions.

The first one is on what is the reaction from the customers after you had increased your prices this quarter? Are you seeing an increase in churn?

The second one is regarding the recent 700 MHz auction. How does that change your competitive scenario in mobile?

Thank you.

Let's start with the churn one, Phani. As we mentioned in the previous call, we executed the back book prices in between the first quarter, second quarter.

The impact on churn, it's expected. Basically, this year, we noticed a smaller increase in the voluntary churn that is slightly higher versus the previous quarter, but is still in the range of 0.8%.

This is the number that we shared with you guys in previous earnings calls. There was an increase in involuntary churn that then is reflecting also a bit in the context of the macroeconomic in the bad debt.

Generally speaking, this impact is higher in the first quarter and then tends to phase down in the second quarter. This is what we are going to expect going forward.

The end of April, it's already showing some sign of this trend happening. At the same time, you see that the effect is more pronounced in our postpaid net additions in January.

That was a lower number, that was 3 30k, then it moved up to 50, in March is moving up to 80. We closed April.

April is going to be higher than 80. Basically, we are ramping up back to post price-up impact.

This is for the first question, Phani. When it comes to the 700 MHz frequencies, this frequency, I don't know if you guys remember, there's already been assigned in secondary use to the small ISP in last year.

Some of them are already using this frequency to provide voice services or extend 5G services to their customer base. From a practical perspective, this frequency has already been used, and therefore the auction crystallized the use from a secondary use to a primary use.

As the press has been reported, Conexis, this is the association of the mobile operators, and TelComp, which is the association of the ISP, have a number of objections related to the way the auction has been carried out, and so there are legal proceedings happening related to the overall auction mechanisms and clearly results.

Thank you.

To you, Phani.

Hello. Good morning.

Thank you for the presentation. I had a few questions.

The first one was on energy costs. Now, I understand you do not disclose your energy cost, but obviously, there's quite a bit of volatility in some of the prices, at least globally.

I also understand that you have long-terms agreements, but maybe if you could give us a bit of color in terms of what potential impact we could see if the situation stays as it is or deteriorates. Are you hedged?

Are you in long-term contracts? That would be helpful.

The second question was on towers, just a follow-up. Can you clarify if you have caps on the inflation for your leases?

The third one was a bit broader on D2D. Obviously, we're seeing a lot of players launching D2D services across different countries.

I think you guys also have an agreement with one of the potential providers. Just wanted to see how interesting you thought this vertical could be in Brazil.

Thank you.

Mathieu, do you want to address the energy and Inflation? Yes.

Sorry, Mathieu, I didn't get your last question.

Yeah. Okay.

D2D as in direct-to-device, direct-to-cell, Oh,

sorry,

satellite.

Okay. Cool.

satellite. Good.

Yes. Okay.

Yeah. Hi.

Not B2B.

Hi, Mathieu. Let's start with energy.

We don't disclose very much the energy costs, but we work with three lines of energy. We have the normal contracts, the open market.

Then we have the what we call mercado livre, that's when you buy a package. We have the third one that is how do you say, farms of energy plant for renewable generation.

With these energy plants, we have long-term contracts, and these also is including in our lease costs. This energy plants give us a very good gain, and protect us through the energy with the open market.

In Brazil, we have a lot of impact related to rains and the what we call red flag here by the government that consider this tariffs. The energy plants protect us to this kind of lack of predictability.

We are start to invest in energy plant 3 years ago, I think 3 years ago, and now we have half of our cost of energy in this kind of plant, that is also one of pressure that we have in lease, but we have a positive impact in the general cost of a energy. Related to

Andrea, just to complement, Mathieu, there is an important initiatives that we launched last year which is called Autogeneration whereby we will extend this predictability, this control in a wholesale agreement to a larger proportion of our overall energy consumption. This project, it's in the process of being implemented, and so the expectation is going to be live basically in the fourth quarter this year.

We're going to be further hedged versus potential price increases. Then,

Okay.

Yes, on this there is a gasoline that it runs on generators as a backup solution, and we make sure that we provided some, let's put it this way, safety buffer for months to come.

Okay. I got it right, about 50% of your volume consumption, I don't know if it's the cost, but is basically under the energy plant scheme and that will increase throughout the year above 50%?

Okay.

Yes. Related to the tower inflation, we have all the contract is have inflation rates is we have the impact.

What we work very hard, and our goal is always have to lease increase the inflation. Putting in other words, we observe the impact of the volume, because we have more towers related to the expansion of our network, but our goal is to increase lease at maximum the inflation of the year.

We observe the volume driven.

Okay. Thank you.

As for the satellite, D2D solutions, this is clearly something, Mathieu, that we see as interesting in a continental country like Brazil, because clearly, as the us of all operators, we provide coverage to a limited surface area within the country. Therefore, it's something that is potentially interesting.

Now the point is that while from a fixed broadband, the product is up and running, and it's something that it's already gaining share in Brazil for the same reason of continental coverage, the D2D solution, we understand that in the current format, it's a niche value proposition. Therefore, here I think that the big question is the cost of this sort of agreement versus the benefits that will deliver to the value proposition.

This is something that we are looking at, because today is basically, and if you look at the launches in many markets, is something that is very specific of very segments in remote areas with text-like sort of capabilities. This is going to change in the years to come, it will become more appealing, and therefore I would guess that the cost-benefit analysis are likely to change over time.

Makes sense. Thank you very much.

Hi. Good morning to all.

Thanks for taking my questions. The first question is regarding the higher delinquency.

You said that you expect this to continue in the next quarter. Would that prompt a more cautious credit analysis and potentially a slowdown in postpaid ads as you seek to control this?

Because we saw the the bad debt, we also saw the the NPLs, the 1 to 30 days NPLs that had a big increase. Just wanted to say how to understand how you're going to react to this.

The second question is a bit more technical, is about the deferred revenue regarding the renegotiation with ATC. When you look at that line, like in the past, you always had a certain revenue on that line.

Is it's just a part of the 80 83 million that that is kind of one-offish? Like you're going to continue to have a level, but below?

Just wanted to understand how this 83 million are going to go forward, given that you had this in the past.

Hi, Marcelo. Related to the bad debt, as I mentioned, yes, we are seeing a more pressure of bad debt in this quarter, a consequence of a deterioration of payment of our customers, B2B and also B2C, more B2C.

I mentioned that we expect the pressure to continue because we have the price-up in the first quarter, so as a consequence as always we have in the price-up, a consequence we have bad debt continues. You want to mention another thing about bad debt?

Yes. No, on the bad debt, let me just another piece of information.

Marcelo, basically, how we deal with it? Basically, there are because it's a credit, he was asking about the credit.

You have a number of different mechanisms to control it, and clearly the credit analysis is one of them. Then there are also some offer construct you can think of, like rely more on plans on credit cards, for example, on prepayments.

There are a number of things that we are implementing already and assessing to cope with the current scenario,

just to

finalize on this. Okay.

Related to the the other income, when we saw sold the the towers for American Tower, this gain was around 900 900 million reais was deferred during the period. Each months a month, since 2018, we have around 4.5 million in this line.

This was for 20 years, beginning in 2018. When we making the agreement with ATC, this part of the contract, the contract that related to the the towers sold was reduced in around 2 years.

This reduction of 2 years is the impact that we have now. Once that we have two 2 years less, we recognize this around 80 million related to the 24 months that we because our contract will ended sooner than we expect.

We recognize this in this one-off operation. I don't know if I addressed your

Going forward, it should go back to the 4

It will continue for a 4.2 because we also decommission some towers, it will not be anymore 4.5, will be around between 4, 4.2. This will continue from as always.

We always have this 13 million impact each quarter related to this line, but this quarter, we have 13 million plus around 87, 7

something. Crystal clear on the ATC.

On the higher delinquency impact on growth, Alberto, I understand that you have some options that you don't need to tough and credit analysis, but is it reasonable to say you'll be a bit more cautious in adding in could we expect some pressure on ads or we cannot say that?

No, I would say no, we couldn't say that. I'd say we're going to try to be more intelligent and selective.

No that I would say this rather than cautious. If you look at our net additions, as a matter of fact, it's performing well.

There are a number of initiatives always in place, because it's always a fine-tuning, Marcelo, when you go to the migration or acquisition in terms of you explore different segments, you explore different payment mechanisms, different offer construct, and so basically, this is something that is going on and we're going to keep optimizing. Now, of course, the macro, it's unknown, it's uncertain, we need to adjust our approach to the evolution of the macro environment.

For example, the Desenrola plan at the end of the day can have a positive impact because it can release a bit of pressure on the level of debt of families. In general terms, what is happening is acquisition is improving bit by bit as we move month-over-month.

This is something that we highlighted in presentation, when you look at the Big Brother impact, our acquisition has been improving, and this has been driving net additions up in the first quarter, and the churn has been dragging down a bit. Over time, the churn increased due to price-up is going to slow down in voluntary, involuntary, and the acquisition are likely to level off, but the acquisition side is improving bit by bit.

Okay. Thank you.

Thank you very much.

Thanks for taking my question. I have a question about FISTEL.

FISTEL is going to be discussed at the STF this week. What's the company expectation regarding the outcome?

Silvio, we believe that we have, as we always said, a strong legal case. It's good news that FISTEL is now to be started to be treated starting next week, the 8th.

It's going to start. We think that the discussion will take some months to articulate and move forward.

What we think as a sector, we have a solid legal case in terms of the modulation of these tariffs related to their objectives. Let's see what it comes out the 8th where the Alexandre de Moraes will put forward his point of view, and then there will be a discussion that will involve all the ministers there.

We believe that is going to take some months yet to be addressed, hopefully by the end of this year.

Got it. Thank you.

Hi. Good morning, everyone.

Thank you very much for taking my questions. The first one is a follow-up on the competitive landscape, but more focused on the hybrid, the Controle segment, that I understand is more relevant for revenue dynamics than the pure postpaids.

By the same time last year, two of the three operators had already increased price, one in February, the other one in the beginning of April. Far this year, no one has increased price.

I'd like to hear your thoughts on why that's happening. That's a very important development for the sector.

There seems to be some rationality, but so far, no price increase. Hear your thoughts here.

The second one related to clients generated revenue that decelerated from 6.3% growth to 5%. I'd like to understand if we should understand this as a deceleration trend, or that's more volatility and should rebound going forward?

Thank you.

Daniel, let me go on the first one. Price-up, you're right.

They're quite important, especially for Controle. Not a lot in terms of the revenue they generate for that year, but basically the alignment between front book and back book is something important for the sustainability of the more-for-more strategy.

This is therefore an important point. As for us, and then I will give you my reading for the others, as for us, we executed our adjustment last year roughly in I think it was June, after Mother's Day.

Now we are in a promotional period, there's Mother's Day. This sort of more-for-more strategy is likely to happen afterwards.

My view is that in our current scenario, we are seeing this happening in the third quarter across the board. As for the reason in terms of why the other competitors didn't do it in February, that was something that I mentioned at the beginning.

This market repair, the more-for-more strategy, and this constructive approach, and it's already happened by the way in the past, they go ups and down, right? We already saw ups and down in the past, Daniel, you followed the sector very closely, you might remember that one of our competitor at a certain point implemented the more-for-more strategy in Controle and then it went back again.

It depends on each company targets, strategy, it's not a linear thing. I still think that as a whole, my outlook in terms of this happening in the third quarter is positive.

Then I think if you ask the same question to the other guys, they're going to have a more complete answer. This is my view in terms of the overall process.

It has never been linear in the past, and it's always ups and down. My outlook is that this will unfold positively in the following months.

At least this is the intention on our side. When it comes to the client-generated revenues, I would say that when you look at our revenue portfolio, you see that we have mobile.

Now we said in February that we wanted to complement with growth from broadband and B2B, this is happening. We always say that mobile is hinged upon postpaid growth in terms of ARPU and customer base, and to a lesser extent, a lower deceleration of prepaid, let's put this way.

Nothing of this is changed. What is changed in this quarter, and you see that everything is accretive, mobile, product, B2B, and broadband.

When it comes to mobile in specific, we always said that the almost double-digit would have come down to a higher mid-digit. This is basically what is happening.

The mechanics and the engine remain the same with a slightly different intensity.

Very clear. Thank you very much, Alberto.

I got the two, right? Okay.

Guys, thank you all for joining today's video call. I want to thank the tireless efforts of our team for the consistent results and solid start of 2026.

The environment is a bit more volatile, we focus on execution as a critical element to our strategy. Look forward to meeting all of you in the coming days on the one-to-one and group meetings.

Thank you, everybody.