About ITSA

ITSA, Ltd. engages in the development ownership and operation of broadband wireless telecommunications systems. It offers video, high-speed Internet and data communications services in Brazil. The company, through its subsidiaries, has licenses in the cities of Brasília, Goiânia, Belém, Campina Grande, Caruaru, Porto Velho, Presidente Prudente, Bauru, Franca, Uberaba, Belo Horizonte and Vitória. The company offers a pre-paid subscription video service, called Mais TV, which includes a self-install kit available in retail stores in various of the cities in which the company has operations. ITSA launched a high-speed Internet access system using the technology of high-speed modems, called LinkExpress, on a commercial basis in the city of Brasília. The company holds licenses covering the frequency bands from 2,170 to 2,182 MHz and from 2,500 to 2,686 MHz. Additionally, the company owns and maintains its proprietary SMS (Subscriber Management System) called Mythos, which was developed in-house to Brazilian needs and standards. Brasília System The Brasília System offers 24 wireless cable channels. The Brasília System transmits at 50 watts of power per channel from a transmission tower that is 300 feet above average terrain. The company provides high speed Internet access, under the brand name of LinkExpress, to its customers in Brasília. It offers LinkExpress in a two-way platform. In this system, customers transmit and receive data signals through the wireless platform, without the use of the telephone. Belém System The Belém System reaches the greater Belém area, including the cities of Mosqueiro, Ananindeua, Icoaraci and Marituba and the islands of Outeiro and Barcarena. The company’s 30-kilometer coverage territory includes approximately 370,000 households. The Belém System transmits at 50 watts of power per channel from a transmission tower that is 300 feet above average terrain. Goiânia System The Goiânia System transmits at 50 watts of power per channel from a transmission tower that is 350 feet above average terrain. The company’s 30-kilometer coverage territory includes approximately 297,000 households. Campina Grande System The Campina Grande system transmits at 20 watts of power per channel from a transmission tower that is approximately 2,500 feet above sea level. The company’s licensed coverage radius includes approximately 80,000 households. The company, with the launch of the Campina Grande system, implemented its pay television operating model, Mais TV. All services through this television operating model are offered on a prepaid basis. Customers can choose from different programming packages and may vary their choice each and every month. The company purchases most of its programming from Neo-TV, an association formed to help operators negotiate and purchase programming. High Speed Internet Access and Data Communications Services The company provides Internet access services, under the brand name LinkExpress, to its customers in Brasília. This service uses wireless cable modems for delivery of access at increased speeds. With a total of 198 MHz of spectrum available in each market, the company is able to offer a range of two-way advanced communication services, including high-speed data services and high-speed Internet, both to the residential and the corporate markets. The company also owns additional specific licenses, which allow the offering of voice and VPN (Virtual Private Network) corporate services. The company owns and operates its own NOC (Network Operating Center), which is located in its headquarters in Brasília. Subsidiaries The company’s significant subsidiaries include TV Filme Servicos de Telecomunicacoes Ltda; TV Filme Brasilia Servicos de Telecomunicacoes Ltda; TV Filme Belem Servicos de Telecomunicacoes Ltda; TV Filme Goiania Servicos de Telecomunicacoes Ltda; ITSA Intercontinental Telecomunicacoes Ltda; and Link Express Servicos e Telecomunicacoes Ltda. Competition The company’s competitors in the pay television area in the city of Brasília are NET Brasília, as well as DirecTV and Sky; in the area of high-speed Internet service is Brasil Telecom. The competitors in the pay television area in Belém area are ORM Cabo, as well as DirecTV and Sky. The competitors in the pay television area in the city of Goiânia are NET Goiânia, as well as DirecTV and Sky. The company’s principal competitors in Campina Grande are Sky and DirecTV.