Telefonica Brasil announced that it will now franchise its Vivo and Terra brand and experience in expanding fiber broadband through partners.
As a franchisor, Vivo will offer all the technical knowledge in the implementation of fiber network, and experience in marketing its products and services. The franchisee starts to use all the company's technical capacity, as well as Vivo Fiber's brand strength and quality (ultra-speed broadband).
The project focuses on cities of 20,000 to 50,000 inhabitants, as well as municipalities or peripheral neighborhoods of large urban centers. With the initiative, Vivo can add more than 1 million households covered by fiber, by franchisees, to 15 million already foreseen by the company's own expansion, by the end of 2021. Currently, Vivo continues with about 10 million households covered in 154 cities across the country.
The franchisee will be responsible for the development of all necessary network infrastructure, as well as the operation management, including sales, service and installation. To become a franchisee, the investor will go through some normal stages of a franchise process, such as bid submission, financial simulations, aptitude tests, etc., and a minimum investment of $ 2.5 million, with an estimated 4-year payback. , with an Internal Rate of Return of approximately 30%, and a 120 month renewable contract.
Fernando Duschitz, Senior Franchise Manager, Vivo
This new business model from Vivo is an opportunity for companies and investors who want to enter this market, as well as for those already acting as providers, to benefit from the strength of the Terra brand, with Telefonica scale, and Vivo quality, as well as of all our experience in expanding fiber, present today in 154 cities across the country.
