In 3Q 09 NETC continued its high revenue growth, driven by sequential improvement in ARPU and strong subscriber-base growth. Management efforts to improve margins are commendable despite intensifying competition in the region. However, we expect ARPU and churn to come under stress, going forward, reflecting our assumption of escalating competition due to the launch of variety of new offerings from various DTH players in the region. Nonetheless, we believe that there is still a plenty of headroom for new additions as broadband penetration remains low in the region. Furthermore, increasing data usage patterns and higher demand for high definition content in the recent months, despite a slowdown in the Brazilian economy is encouraging and provides an opportunity for robust growth in NETC's high definition content offerings amid upcoming events such as the 2010 Football World Cup. Moreover, as we expect fast improvement in macroeconomic factors in the Brazilian economy, we anticipate a surge in consumer demand and spending which will help drive the NETC topline, going forward.

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