Brazil's Vivo Plans To Invest $2.08 Billion In 2011

Brazil's leading cellular operator, Vivo Participacoes (VIV, VIVO4.BR), is planning to invest 3.48 billion Brazilian reais ($2.08 billion) in its operations in 2011, the company said Thursday in a statement.

"Such amount contemplates expenditures with frequencies acquired at the Anatel's (local telecommunication regulator) Auction held in last December 2010. The licenses value was estimated at BRL782 million, although the actual amount to be paid and the terms will comply with the rules established in the bidding documents," the company said.

By comparison, in 2010, the company invested a total of BRL2.5 billion in its operations.

Vivo, which is controlled by Spain's Telefonica SA (TEF, TEF.MC), said that its capital-budget proposal still must be approved by company's shareholders.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-3544-7071; rogerio.jelmayer@dowjones.com

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