Businessweek

lated third parties, including Claro Brasil and Net Serviços. Sales and Distribution Claro Brasil markets its services primarily through retail chains, which amount to approximately 8,900 points of sale, exclusive distributors, which represent approximately 4,800 points of sale, and its approximately 270 company-owned stores, which offer one-stop shopping for various cellular services and products. Claro Brasil also sells and distributes its products and services over the Internet. Claro Brasil’s stores also serve as customer service centers. Embratel’s local fixed telephony service, Claro Fixo, is marketed in person through exclusive dealers, through its call center subsidiary BrasilCenter and through the internet. Embratel’s other local fixed telephony service, NET Fone, is marketed through Net Serviços’ sales and distribution channels. Embratel’s Pay-TV service, Claro TV, is marketed in person through exclusive dealers and its company-owned stores, by phone through call centers and by the internet through Embratel’s Website. In addition, Embratel has a corporate sales group dedicated to the needs of its large corporate and other high-usage customers. Net Serviços’ services are marketed through coordinated efforts that include telemarketing, the Internet, mail advertising, door-to-door sales, and retail sales. In addition, Net Serviços also relies on third-party vendors to market its services through call centers. Competition The company’s principal competitors include Vivo, TIM, Oi, CTBC, Sercomtel, Nextel, Intelig, Telefónica, Sky, and Global Village Telecom. SOUTHERN CONE OPERATIONS The company offers wireless, fixed line voice, broadband, and Pay TV services and products under the Claro brand through its subsidiaries, AMX Argentina S.A., Telmex Argentina S.A., Claro Chile S.A, Claro Comunicaciones S.A., Claro Servicios Empresariales S.A., AMX Paraguay, S.A., AM Wireless Uruguay, S.A., and Telstar, S.A. The company is a wireless telecommunications services provider in Argentina, Chile, Paraguay, and Uruguay, measured by various subscribers. As of December 31, 2011, it had approximately 26.3 million wireless subscribers. It also had approximately 0.4 million fixed line subscribers, 0.3 million broadband subscribers, and 0.6 million Pay TV subscribers. Services and Products Wireless Services and Products The company offers wireless voice and data services under various plans to meet the needs of different user segments. The plans are either ‘postpaid’, where the customer is billed monthly for the previous month, or ‘prepaid’, where the customer pays in advance for a specified volume of use over a specified period. The company also offers international roaming services to its subscribers through the networks of cellular service providers with which it has entered into international roaming agreements worldwide, and it provides GSM and 3G roaming services to customers of its international roaming partners. It offers data services, including SMS, MMS, Premium SMS, and Premium MMS, mobile entertainment services, data transmission, Internet browsing, and email services. The company also offers various products as complements to its wireless service, including handsets and smartphones, and accessories, such as chargers, headsets, belt clips, batteries, broadband cards, and netbooks. In addition, it offers other wireless services, such as push-to-talk services. Fixed Line Services and Products The company offers fixed line voice services, including local and long-distance services; data services, including data administration and hosting services; and broadband services to both corporate and residential customers under various plans to meet the needs of different user segments. It also offers DTH Pay TV services in Chile and Paraguay, and video on demand services in Argentina and Paraguay. Competition In Argentina, the company’s principal wireless competitors include Telecom Personal and Movistar; and its principal fixed-line competitors include Telefonica de Argentina, Telecom Argentina S.A., Global Crossing, Comsat, and NSS. In Chile, its principal wireless competitors incl