Telefônica Brasil S.A. (VIV): Business Model Canvas [Dec-2025 Updated]

You're digging into the financials of a major Latin American player and need to cut through the noise to see the real strategy, so let's get straight to it: Telefônica Brasil S.A.'s game right now is laser-focused on fiber infrastructure and migrating users up the value chain, which is why their Q3 2025 numbers are showing real strength. They are pouring capital-like the R$6.9 billion in 9M 2025 CapEx-into expanding their 30.5 million homes passed with fiber, all while pushing postpaid ARPU toward R$230 per month. Honestly, this isn't just about keeping the lights on; it's a calculated pivot to high-margin digital services, funded by selling off old assets. That's how you build a future-proof telecom. To see exactly how they line up their partnerships, resources, and revenue streams to pull this off, check out the full Business Model Canvas breakdown below.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Key Partnerships

You're looking at how Telefônica Brasil S.A. (VIV) is structuring its external relationships to drive infrastructure build-out and digital service growth, which is key for its Transform & Grow strategy.

The control over fiber assets has been significantly consolidated. Telefônica Brasil completed the acquisition of a 50% stake in FiBrasil Infraestrutura e Fibra Ótica S.A. from Caisse de dépôt et placement du Québec (CDPQ) in November 2025, bringing its total ownership to 75.01%. The transaction value was R$858,001,662.32 after adjustments, or BRL 858m. This move gives Telefônica Brasil more direct control over the pace of fiber network expansion. By September 30, 2025, FiBrasil contributed 4.4 million homes passed to Vivo's total footprint, which stood at 30.5 million homes passed. For context, Telefônica Brasil's own network covered 30 million homes and businesses across 444 cities, serving 7.2 million fiber customers as of late 2024.

The core network build-out relies on established vendor relationships. Strategic alliances for 5G infrastructure include Ericsson, Nokia, and Huawei. Telefônica Brasil has used equipment from Ericsson and Huawei Technologies for earlier 5G deployments utilizing dynamic spectrum sharing technology.

The B2B segment is seeing major wins through IoT collaborations. The landmark deal with Sabesp, São Paulo's state water and sewage utility, is considered the world's largest in the water-utility IoT sector.

The IPNET acquisition in 2024 was essential for expanding the cloud portfolio, as IPNET is a known Google cloud solutions partner. This move helps Telefônica Brasil offer software and system resale services for Google Workspace and Google Cloud, alongside professional and managed services. In the twelve months ending June 30, 2025, Telefônica Brasil's Cloud revenue reached BRL 2,304m.

Content bundling remains part of the B2C strategy, though specific 2025 streaming deals weren't detailed in recent reports. The required partners are Netflix and Disney+. For context on content partnerships, Telefônica Brasil previously signed a deal with music streaming app Tidal and secured UEFA football rights for another four years. The IoT and messaging segment, which includes deals like Sabesp, generated BRL 1.2bn in revenue in the twelve months to June 30, 2025.

Key elements of these partnerships include:

• FiBrasil ownership increased to 75.01%.
• Sabesp IoT deal involves 4.4 million meters by 2029.
• The Sabesp contract value is approximately BRL 3.8bn.
• IPNET acquisition strengthens Google Cloud resale capabilities.
• Cloud revenue reached BRL 2,304m in the last twelve months ending June 2025.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Key Activities

You're looking at the core engine driving Telefônica Brasil S.A. (VIV) right now-the actual work they are doing day-to-day to keep that massive operation moving forward and growing. It's all about network build-out, moving customers up the value chain, and monetizing the digital shift.

The first major activity is the relentless work on infrastructure. This isn't just keeping the lights on; it's about future-proofing the entire operation. They are deploying and maintaining the extensive 5G and fiber-optic network, which is crucial for premium service delivery.

Here are the network and customer scale numbers as of the third quarter of 2025:

Next up is the strategic migration of prepaid mobile users to higher-value postpaid plans. This is where the ARPU (average revenue per user) lift comes from, so it's a key focus area. They are successfully driving customers toward convergence offerings like Vivo Total.

• Postpaid revenue grew 8.0% YoY, reaching R$8.4 billion in Q3 2025.
• Postpaid net additions in Q3 alone hit 1,008 thousand.
• Mobile ARPU reached a record high of R$31.5, up 3.9% YoY.
• The prepaid mobile segment saw a decline of 7.6%.
• The cross-ARPU for Vivo Total subscribers reached R$230 per month.

The third critical activity involves developing and selling digital B2B services, which is where you see some of the strongest growth percentages. This moves Telefônica Brasil S.A. (VIV) beyond just connectivity and into the digital transformation space for businesses.

The growth in this area is defintely outpacing the core connectivity business. For example, revenues from Data, ICT, and digital services grew by 22.8% year-over-year in Q3 2025. Over the last 12 months, B2B revenues reached R$13.2 billion, with the digital B2B segment growing an impressive 34.2%.

They are also actively managing that massive mobile customer base. You're managing a base of 102.9 million mobile connections, which is a huge operational undertaking. Keeping that base sticky is vital, and the latest churn figures show success in retaining those high-value customers.

• Total accesses across mobile and fixed lines reached 116.6 million.
• Mobile churn remained low at 0.98%.
• Fiber churn for the quarter was 1.46%.

Finally, a key financial activity is executing asset sales to fund strategic CapEx. This shows a disciplined approach to capital allocation, balancing necessary investment with returning capital or reducing debt.

The company reaffirmed its confidence in delivering R$4.5 billion in asset sales over the coming years. This supports their investment strategy, where CapEx for the first nine months of 2025 totaled R$6.911 billion, with the CapEx to revenue ratio declining to 15.7%.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Key Resources

You're looking at the core assets that make Telefônica Brasil S.A. (VIV) the powerhouse it is in the Brazilian market as of late 2025. These aren't just line items; they are the physical and intangible foundations generating revenue.

The company's most visible physical asset is its massive fixed infrastructure. The extensive fiber-to-the-home (FTTH) network covers 30.5 million homes passed nationwide as of the third quarter of 2025. This footprint continues to expand, underpinning the strong fixed services revenue growth.

On the mobile side, the resource base includes critical 5G and 4.5G mobile spectrum licenses secured in prior auctions, notably the BRL1.7 billion spent for key mid- and high-band spectrum. This spectrum supports an active 5G infrastructure, with 3,542 5G cell sites deployed, covering approximately 45% of Brazil's population by mid-2025, with regulatory milestones pushing for further expansion.

Intangibly, the Vivo brand is a top-tier asset, recognized as the largest telecom operator in Brazil by mobile customer base. This brand equity supports the acquisition and retention of high-value customers. The large, high-value postpaid customer base is a significant resource, reaching nearly 50 million customers in Q3 2025, representing a 7.3% year-over-year increase.

For the B2B segment, the digital services portfolio is backed by dedicated data centers and cloud infrastructure. This capability fueled a 22.8% year-over-year growth in Corporate Data, ICT and Digital Services revenue in Q3 2025, reaching R$ 1.4 billion for the quarter.

Here's a quick look at some of the core operational metrics underpinning these resources as of Q3 2025:

The operational scale is immense, and it's supported by a disciplined approach to capital deployment. You can see the results of this asset base in the customer mix:

• Postpaid customer base growth: +7.0% year-over-year in Q2 2025.
• Postpaid churn rate: Low at 0.98% in Q3 2025.
• Mobile ARPU (Average Revenue Per User): Reached R$ 31.5 in Q3 2025.
• FTTH Connected Homes: 7.6 million as of Q3 2025.
• Vivo Total Convergent Base: Nearing 62% of all fiber accesses.

Finance: draft 13-week cash view by Friday.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Value Propositions

Convergent service bundles (Vivo Total) driving lower churn and higher ARPU.

Fastest 5G network in Brazil, recognized by OpenSignal.

• Vivo's 5G network recognized by OpenSignal as the fastest in the world for the second consecutive time (September 2025).
• 5G Standalone (SA) customer base reached 21.4 million subscribers (Q3 2025).
• 5G footprint spanned over 17,000 cell sites across 562 municipalities (Late 2025).
• 5G population coverage reached over 63 percent (Late 2025).

High-speed, high-reliability fiber broadband access.

• Fiber network footprint covered 30.5 million homes nationwide (Q3 2025).
• Fiber-to-the-Home (FTTH) connected homes reached 7.6 million (Q3 2025).
• FTTH connected homes increased by 12.7% year-over-year (Q3 2025).
• FTTH take-up ratio stood at 24.9% (Q3 2025).

Comprehensive digital ecosystem (health, financial, entertainment) for B2C.

End-to-end digital transformation solutions for corporate clients.

• B2B total revenue grew by 15.0% (Q3 2025).
• Digital B2B revenue growth reached 34.2% (Q3 2025).
• Digital B2B services accounted for 8.6% of total revenue (Q3 2025).
• Strategic partnership with Sabesp involves 4.4 million smart water meters (IoT solution).

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Customer Relationships

You're looking at how Telefônica Brasil S.A., operating as Vivo, manages its vast and diverse customer base as of late 2025. The relationships are clearly tiered, moving from high-touch for the largest accounts to fully digital for the mass market.

Dedicated account management for large corporate (B2B) clients.

For the enterprise segment, the focus is on high-value digital solutions, which naturally requires dedicated relationship management. B2B revenues reached R$ 13.2 billion in the last 12 months, showing a 15% year-over-year increase. The growth engine here is clearly digital; Digital B2B specifically grew an impressive 34.2%, now making up 8.6% of total revenues. This suggests that account managers are heavily focused on upselling cloud, IoT, and cybersecurity services, building on the foundation where the IoT platform connected over 2 million devices in 2024.

Digital self-service and personalized offers via the Vivo mobile app.

The digital channel is central to managing the scale of the mobile base, which stood at 102.9 million connections in Q3 2025. The recurring use of the Vivo app is significant, reaching 28.6 million users as of September 2025. This massive digital footprint allows for efficient service delivery and personalized commercial actions, helping to manage the base without escalating support costs.

• Total mobile customer base: 102.9 million accesses.
• Postpaid customers: 69.8 million accesses, up 7.3% year-on-year.
• Postpaid share of mobile base: 68%.

High-touch, in-person support through a network of retail stores.

While the data doesn't give us the exact number of physical retail stores, their role is evident in the sales mix for fixed services. The commercial strategy prioritizes in-store sales for the convergent offering, which is a key touchpoint for high-value fiber customers. The fixed services segment is growing robustly, with fixed revenue up 9.6% year-over-year in Q3 2025.

Proactive retention strategies for high-value postpaid and fiber customers.

Retention is clearly tied to the convergent offering. The FTTH churn rate was reported at 1.46 (implied monthly rate), which is notably lower than the 1.93 seen in the second quarter of 2022. This reduction is explicitly linked to the success of the bundled offering, which increases customer stickiness. The postpaid segment, representing the highest-value mobile customers, saw its ARPU (Average Revenue Per User) hit a record R$ 31.5 in Q3 2025.

Convergent bundling (Vivo Total) to increase customer stickiness.

The Vivo Total convergent bundle is a primary driver for both fiber additions and churn reduction. This offering combines postpaid mobile and fiber services, and its adoption is accelerating. The Vivo Total customer base grew 52.7% year-over-year, reaching 3.2 million subscribers by Q3 2025. This product is so central that it was responsible for 85.1% of new fiber additions in stores over the last three months. Near 62% of the entire fiber base is now convergent.

The success of Vivo Total is clear; it dilutes ARPU slightly due to discounts, but the trade-off is a significant reduction in customer attrition. If onboarding takes 14+ days, churn risk rises.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Channels

You're looking at how Telefônica Brasil S.A. gets its services and devices into the hands of customers as of late 2025. It's a multi-pronged approach, blending physical presence with heavy digital and wholesale infrastructure plays. The data from the third quarter of 2025 shows where the action is.

Physical Vivo retail stores for device sales and in-person service

The physical footprint remains crucial, especially for driving adoption of high-value bundles. While the exact count of physical Vivo retail stores isn't explicitly published in the latest reports, their importance is clear in the conversion of fiber sales. For instance, nearly 85% of Fiber-to-the-Home (FTTH) sales within these stores are completed through the Vivo Total convergent bundle. This indicates that the physical channel is heavily leveraged for upselling and bundling services rather than just basic transactions. Telefônica Brasil S.A. supports this network with a substantial direct workforce of 36 thousand employees, plus 96 thousand allies (service providers and contractors) as of March 2025.

Direct sales force targeting B2B and corporate clients

The direct sales force is clearly focused on capturing the high-growth B2B space, which is showing impressive acceleration. Total B2B revenues increased by 15.0% year-over-year, reaching R$13.16 billion in the period leading up to Q3 2025. More specifically, the push into digital solutions via this channel is significant: B2B digital services, covering cloud, IoT, and cybersecurity, surged by 34.2%. These digital B2B revenues hit R$5.06 billion, making up 11.7% of total company revenue over the last twelve months. A concrete example of this channel's success is the strategic deal with Sabesp, involving the deployment of 4.4 million smart water meters.

Digital platforms (website, app) for sales, top-ups, and service management

Digital platforms are the backbone for managing the massive customer base, which stood at approximately 103 million mobile connections in Q3 2025. The digital ecosystem supports sales, self-service, and recurring revenue streams like top-ups. The overall fixed services revenue saw a strong 9.6% increase, partly supported by digital adoption. The company's overall Q3 2025 revenue was R$14.95 billion, and digital channels help maintain the low 0.98% churn rate seen in the postpaid mobile segment by enabling easy service management.

Wholesale fiber network access via FiBrasil for other ISPs

This channel represents a strategic move to monetize infrastructure assets and support broader market penetration. Telefônica Brasil S.A. holds a 75% stake in FiBrasil, a neutral FTTH open access platform, after acquiring a larger share for R$850 million. The fiber network footprint passed 30.5 million homes nationwide as of Q3 2025, with 7.6 million homes connected via FTTH. As of 2024, FiBrasil was already serving over 4 million customers, enabling other ISPs to rent space on the lines. This infrastructure play is expected to improve network penetration nationally.

Call centers and social media for customer support

Customer support relies on traditional and digital interaction points. Call centers handle high-volume inquiries and service escalations for the 102.9 million mobile accesses and millions of fixed line customers. Social media channels are used for proactive communication and handling less complex service requests, helping to manage customer experience alongside the digital self-service options. The focus on high-value postpaid customers, who represent 68% of the mobile base, means support quality in these channels directly impacts the Average Revenue Per User (ARPU), which hit a record R$31.5 in Q3 2025.

You'll want to track the take-up ratio for the fiber footprint, which stood at 24.9%, as that shows the immediate conversion potential from the wholesale and direct sales efforts on the ground. Finance: draft 13-week cash view by Friday.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Customer Segments

You're looking at the core customer groups Telefônica Brasil S.A. (VIV), operating as Vivo, serves as of late 2025. This is where the revenue engine is running, focused heavily on high-value, data-centric relationships.

High-Value Postpaid Mobile Subscribers represent the premium end of the mobile base. These customers are the primary driver of mobile service revenue growth, which was up 8% in the third quarter of 2025 year-over-year, while prepaid revenue declined 7.6% in the same period. Postpaid accesses grew 7.3% year-over-year, reaching approximately 50 million customers in Q3 2025. This segment now comprises a dominant 68% of the total mobile customer base, which stood at approximately 103 million connections overall in Q3 2025.

Residential Households demanding high-speed FTTH are central to the fixed-line strategy, which saw fixed services revenue jump 9.6% in Q3 2025. The number of connected homes via Fiber-to-the-Home (FTTH) reached 7.6 million, marking a 12.7% increase year-over-year. The total fiber footprint passed 30.5 million homes nationwide by Q3 2025.

The focus on convergence is clear, as the flagship Vivo Total convergent offer saw a 52.7% increase year-over-year, with nearly 62% of all fiber access subscribers now on this bundle.

Corporate and SME clients for B2B digital services (Cloud, IoT) are a significant growth vector. This segment is increasingly driven by digital offerings, which are key to portfolio diversification. B2B revenues reached R$13.2 billion over the last 12 months, a 15% year-over-year increase. Digital B2B, which includes Cloud and IoT, grew an impressive 34.2% in Q3 2025, accounting for 8.6% of total revenues.

Prepaid Mobile Users are a segment Telefônica Brasil S.A. (VIV) is actively managing through migration. While still a base, the financial focus is on moving these users to higher-value postpaid or hybrid plans, evidenced by the 7.6% year-over-year decline in prepaid service revenue in Q3 2025.

Other telecom operators utilizing the FiBrasil wholesale network represents the infrastructure monetization play. Telefônica Brasil S.A. (VIV) increased its stake in FiBrasil to 75.01% in July 2025. FiBrasil operates as a neutral, independent wholesale fiber network, which allows other operators to utilize the infrastructure.

Here's a quick breakdown of the key customer-related metrics from the Q3 2025 reporting period:

The success in these segments is reflected in the overall financial health; total revenues grew 6.5% year-over-year to R$14.9 billion in Q3 2025, and EBITDA margin expanded to 43.4%.

You can see the focus on quality over volume in the mobile base:

• Postpaid Access Growth (YoY): 7.3%
• Prepaid Service Revenue Change (YoY): minus 7.6%
• Postpaid Churn: 0.98%
• Mobile ARPU (Average Revenue Per User): Record R$31.5

Also, the residential segment is heavily leaning into bundles:

• Vivo Total Adoption Growth (YoY): 52.7%
• Fiber Sales in Stores via Vivo Total: Nearly 85%
• Fiber Take-Up Ratio: 24.9%

Finance: draft 13-week cash view by Friday.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Cost Structure

You're looking at the major drains on Telefônica Brasil S.A. (VIV)'s cash flow to understand where the money goes before it hits the bottom line. The cost structure here is heavily weighted toward infrastructure investment and keeping that massive network running across Brazil.

The most significant outlay is the High capital expenditure (CapEx) on network expansion, which totaled R$6.9 billion in 9M 2025. This shows a clear commitment to future capacity, primarily focused on fiber rollout, as over 90% of fiber CapEx is focused on connecting homes, accelerating network monetization.

Operating costs are also substantial, especially as service costs rise due to the expansion of digital offerings. For instance, in Q3 2025, total costs reached R$8.5 billion for the quarter, up 4.6% year-over-year, growing below the period's inflation. The cost of services and goods sold in Q3 2025 rose 9%, mainly driven by service costs increasing 15.7%, reflecting the accelerated growth of digital solutions, especially in the B2B segment.

Here's a quick look at how some of the main cost lines moved recently:

You'll notice that while the company is growing its digital B2B segment-with digital B2B revenue up 31.3% in H1 2025-this drives up service costs. The costs for acquiring and maintaining spectrum licenses (5G) are embedded within the overall CapEx and network operating costs, though specific standalone figures aren't broken out in the latest public summaries. Similarly, content and digital service platform licensing fees are part of the rising service costs, evidenced by video and music OTT revenues growing 19.9% year-over-year in the last twelve months, which implies higher associated licensing expenses.

The management of the workforce is a key cost consideration. Personnel expenses increased by 3.2% in Q3 2025, primarily due to salary adjustments, which they partially offset with more efficient benefit program management. In Q2 2025, personnel expenses rose 8.8%, influenced by annual weight adjustments and a higher headcount in areas like digital, IT, and new businesses. The company is actively working on efficiency gains, such as reducing unitary tower costs and leveraging digitalization to keep the growth in the largest cost line, commercial and infrastructure, in check, which grew only 3.5% year-over-year in Q2 2025.

Here are the key cost drivers you should track:

• Network Operation and Maintenance: Operating cost growth was kept low at 2.6% in Q3 2025, showing efficiency gains in running the existing fiber and mobile tower infrastructure.
• Personnel Costs: Driven by strategic hiring in high-growth digital areas, leading to an 8.8% rise in Q2 2025.
• Service Costs: The 15.7% spike in Q2 2025 service costs is a direct reflection of scaling up digital solutions for B2B customers.
• Spectrum and Licensing: These are bundled into CapEx and rising service costs, but the growth in digital services revenue (up 15.3% in 12 months) suggests increasing associated licensing spend.

The company's focus on cost discipline is clear, as total costs grew slower than net revenue in Q2 2025, helping the EBITDA margin expand to 40.5%. Still, managing the high fixed costs of a nationwide network in a capital-intensive sector requires constant vigilance.

Telefônica Brasil S.A. (VIV) - Canvas Business Model: Revenue Streams

You're looking at the core ways Telefônica Brasil S.A. (VIV) brings in money as of late 2025. It's a story of shifting from legacy to digital, with a clear focus on higher-value contracts.

Mobile Service Revenue remains a bedrock, with postpaid growth being the primary driver pushing the segment forward. The focus here is definitely on locking in customers with longer-term commitments rather than chasing volume on prepaid.

Fixed Service Revenue shows strong momentum, particularly from Fiber-to-the-Home (FTTH) connections, which saw revenue growth up 9.6% in Q3 2025. This infrastructure build-out is paying off in recurring monthly revenue.

The growth engine in the enterprise space is Digital B2B Services, covering Cloud, IoT, and Cybersecurity. Revenue in this area surged, with digital B2B up 34.2% in Q3 2025, showing strong adoption of their managed services portfolio.

New Businesses, which include Health, Financial, and Entertainment offerings, are becoming a meaningful part of the mix, representing 11.2% of total revenue over the last twelve months ending June 30, 2025. This diversification helps stabilize the overall revenue base.

For the twelve months ending June 30, 2025, the Total revenue for Telefônica Brasil S.A. (VIV) was approximately $10.039 billion USD.

Here's a quick look at the components driving that total revenue based on the latest reported quarter (Q3 2025):

You can see the shift in focus when you break down the performance drivers:

• Postpaid mobile accesses reached nearly 50 million, comprising 68% of the total mobile base.
• Postpaid churn remained low at 0.98%, showing customer stickiness.
• Mobile ARPU (average revenue per user) increased by 3.9% to R$31.5.
• FTTH accesses grew 12.7% year-over-year, reaching 7.6 million connected homes.
• The Vivo Total convergent bundle adoption was responsible for 85.1% of new fiber additions in stores.
• Health services (Vale Saúde Sempre) subscriptions grew 27% year-over-year to around 450,000.

Finance: draft 13-week cash view by Friday.