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Vivo Participações – 3Q06 Results October 27, 2006

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Higher coverage – 2,272 municipalities against 1,757 from competitor 1 and 1,694 from competitor 2.

VIVO has the best channels of distribution of the Brazilian telecom sector with 8,364 points of sales, being 319 own stores, 3,175 third party stores and 4,718 retails stores.

Second stage of the Corporate Reorganization about to be concluded and which will cause 14 operators to be merged into one only company, with consequent simplification of structures and processes and allowing operating and control efficiency.

Sustainable combat against cloning and fraud, with certification of network and prepaid and post-paid customer base, provided approximately 84% reduction in the number of cloning occurrences in comparison to the same period the last year;

VIVO is a leader in compliance of ANATEL’s quality goals, having achieved 96.7% of the pre-established goals.

Total net revenue grew 13.0% in relation to the previous quarter. Termination of the partial Bill&Keep system in July contributed to such increase.

Executive Summary

More than 90.0% of our customers are already inserted in the new IT/IS platform, which attests that the unification projects is now entering in the final stage and have been successful.

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SAC was reduced by 31.4% and 18% in relation to 3Q056 and 2Q06, respectively.

Increase of 18.3% of the post-paid ARPU and 21.7% in the pre-paid ARPU when compared to the 2Q06.

The net indebtedness in the amount of R$4,147.6 millions presents a 4.3% reduction in the quarter in relation to the 2Q06 due to the benefit of the first stage of the corporate restructuring.

Positive reversal of the operating cash flow in 3Q06 over the previous quarter represented a consequence of improvement in the EBITDA. The amount of R$270.8 million recorded in the quarter increases the year-to-date operating cash flow to R$675.0 million.

EBITDA of R$715.6 million, with Ebitda margin of 25.3% in the quarter, represented a significant growth in relation to R$306.3 million and 11.8% Ebitda margin recorded in 2Q06.

The losses recorded in 3Q06 were 60.1% lower than the previous quarter (from R$ 493.1 million to R$ 196.9 million)

GSM – coverage and overlay have been fulfilled as planed.

Executive Summary

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Client Base

23,190 23,482 23,257

5,650 5,244 5,268

3Q05 3Q06 2Q06

Pre Post

+1.3%

28,840 28,726

- 0.4%

28,525

+ 0.7%

+ 1.0%

-7.2% - 0.5%

Market leadership in its authorized area;Stable mix of clients;Loyalty and retention;Maintenance of the entry level handset prices.

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4,718

3,175

319

4,386

2,500

97

4,011

1,954

89

Vivo C1 C2

Retail Third Party Own Stores

8,364

6,9536,116

Leadership in Distribution & CoverageOnly operator in 3G

2,272

1,757 1,694

Vivo C1 C2

Distribution Channels Covered Municipalities

87% of clients covered by 1xRTT

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Upon receiving calls win bonus for local calls from Vivo to Vivo

Vivo ZAP 3G: Promotional prices

3Q06 Main Marketing Actions

Buy any handset and win up to R$1,000 every month, till the end of the year

Client speaks for free to any Vivo or fixed phone after 3 minutes of connection

Talk more: Vivo-PrepaidFather’s Day

Inbound Traffic Vivo ZAP 3G

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+52%

Loyalty and Retention

Postpaid Clients Prepaid Clients

Program based on PointsChange of non-authenticated handsets and/or of obsolete technologyRight PlanningClient Bring-back ProgramSpecial Care Program

Implementation of new values to rechargeIncentives to rechargeBonus in minutesMore options in points to recharge

3Q05 2Q06 3Q06

Number of binded clients

+20%

Accomplishment of Campaigns

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136 136 157

1,285 1,182 1,159

992 1,150868

3Q05 3Q06 2Q06

Other Services Monthly SubscriptionNetwork Usage Bill & Keep effect and others

Net Revenues

Bill & Keep effect and others (R$ 261 MM);Campaigns to stimulate recharges

398 357 414

3Q05 3Q06 2Q06

Handsets

-10.3% -13.8%

Service Revenues Handset Revenue+ 2.3%

2,412 2,184

2,468

+ 13.0%

R$ million

+ 261

- 8%

+ 1%

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Data Revenues Evolution

62%23%

15%

SMS WAP ZAP + others

Data Net Revenues

+8.5%

3Q05 3Q06

54%

24%

22%

SMS WAP ZAP + others

3Q06

2Q06

3Q05

- 4.5%

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16.7 15.3 14.4

13,4

9.7

11.5

3Q05 3Q06 2Q06

+1.8%

ARPU Blended Evolution3Q05 vs. 3Q06 3Q06 vs. 2Q06

28.7

24.1

Inbound

Outgoing

28.2

Bill & Keep effect and others

3.1

+19.1%

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59.0 55.150.1

23.9

20.8

28.8

3Q05 3Q06 2Q06

+ 1.1% + 18.3%

Post-Paid ARPU Evolution3Q05 vs. 3Q06 3Q06 vs. 2Q06

83.9

70.9

83.0

Inbound

Outgoing

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Pre-Paid ARPU Evolution

6.0 6.1 6.0

8.16.8

9.6

3Q05 3Q06 2Q06

11.3% 22.7%

3Q05 vs. 3Q06 3Q06 vs. 2Q06

15.7

12.8

14.1

Inbound

Outgoing

13

3631

35

40

40

38

3Q05 3Q06 2Q06

+ 2.6% +18.2%

MOU Blended Evolution3Q05 vs. 3Q06 3Q06 vs. 2Q06

78

66

76

+11.1% +29.0%

Inbound

Outgoing

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*SAC Blended

SAC*

128

105

153

3Q05 3Q06 2Q06

-18.0%-31.4%

15

113

697

512

151

664

146

1002

547

155

418

159

768

557

149

372

General &administrative

expenses

Sellingexpenses

Cost ofhandsets

Personnel

Cost ofservicesrendered

3Q052Q063Q06

*Depreciation is not included

390

R$ million

Operating Costs*

Bill & Keep effect

274

16

147.8

338.7

161.3

3.7%

9.0%

4.1%

3Q05 2Q06 3Q06

PDD % Gross Revenues

PDD* EvolutionR$ million

Control of cloning and fraud with reduction of approximately 84%;Management of the credit risk involved in the capture of new clients;Increased number of actions to improve collection;Authentication of client base.

* PDD = Provision for Bad Debt

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796.6715.6

306.3

28.3%

11.8%

25.3%

28.4%

728.4

3Q05 3Q06 2Q06

EBITDA Adjusted EBITDA

EBITDA Margin Adjusted EBITDA Margin

EBITDA & Free Cash Flow

406.8

-31.6

270.8

3Q05 3Q06 2Q06

EBITDA Free Cash Flow*

R$ million

* EBITDA - Capex

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2Q06 3Q06

Short-Term Long-Term

4,1484,334

7,928 7,733

2Q06 3Q06

Net Debt

Shareholder's Equity

2Q06 3Q06

Gross Debt, Net Debt and GearingCovered Short-Term Debt

Gross Debt (R$ million) Net Debt (R$ million)

Gearing

4,686.4 4,699.6

60%

40%

68%

32%

3Q06

R$ million

0.55 0.54

2Q06

4,147.6

4,334.0

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R$ million

Net Financial ResultReduction in Financial Expenses

3Q05 3Q06 2Q06

(213.6)

(201.6)

(212.7)

-5.6%-5.2%

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CapexR$ million

15.7%

13.0%

13.9%

3Q05 2Q06 3Q06

% Capex/Net Rev.

IT / IS Programs; Quality and Coverage; Corporate Market Segment.

139.5202.6

71.2

87.6

107.1

94.0

110.8

135.1

224.6

3Q05 2Q06 3Q06

Network Technology Others

389.8 444.8

337.9Total Capex

858.5

434.3

191.4

280.6

294.1

349.1

Accumulated 2005 Accumulated 2006

Network Technology Others

13.3%16.3%

Accumulated 2005 Accumulated 2006

Main Capex Targets:

1,344.0

1,064.0

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ANATEL StandardsImprovement in Indicators

Source: ANATEL (September/2006)

3.3%3.3%3.8%

9.3%

12.1%

Sep-05 Dec-05 Mar-06 Jun-06 Sep-06

Best Performance

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ACTIONS

Vivo Social Responsibility

Vivo is one of the first companies to adhere to the “Everyone Committed to Education” program, a nationwide mobilization to the benefit of improvement of public education quality in Brazil..

Four months after its opening, the Portuguese Language Museum, sponsored by Vivo, was awarded UNESCO’s recognition diploma due to its contribution in Communication and Information..

Vivo Institute, in a partnership with the City of São Paulo Government, has launched the Reading to Believing project, whichwill allow visually deficient people to have access to education and to reading.

The Environmental Education School – Park School, a project sponsored since 2004 by Vivo Institute, won the 2006 Telecom Yearbook Citizenship Prize.

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Competitiveness

GSM Overlay

Overlay

Coverage

Quality

Technology

More handset models available. National coverage in digital roaming.Lower risk of cloning.

Overlay in 850 MHz results in:Superposition of coverage areas;Good indoor coverage.

Commitment to maintain the same levels of quality in CDMA and GSM.PT and TEF expertise in GSM.

Availability of GSM in parallel to CDMA.

Opex off-set by reduced costs in other items.

More choices in providing communication solutions.

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Final Remarks

New Campaigns Price of Handsets and Services

AssuredCoverage Quality

UnificationIT / IS Platforms

• Digital Roaming (hybrid handsets)• 1.9 MHz Frequency

National Coverage

Final stage toward conclusionCorporate Restructuring

Permanent combat and progressive reduction

Cloning and Fraud

Main Strategic Points

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Safe Harbor Clause Forward Looking Statements

• This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines, market share, financial results and other aspects of the activity and situation relating to the Company. The forward looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ materially from those in the forward looking statements as a result of various factors.

• Analysts and investors are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this presentation.