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DATING OVER 50 SAO JOAO DE MERITI BRAZIL

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Contents:

Environmental and Sanitary Conditions of Guanabara Bay, Rio de Janeiro
Information source, study population and indicators



As mentioned above, the Brazilian mobile telecommunications market is facing an
overall reduction in the number of prepaid customers, as users which previously
held multiple SIM cards are consolidating to one single SIM card due to
macroeconomic pressures. In connection with this trend, our strategy is to be
chosen as the single SIM provider for the prepaid market by providing offers
that are attractive and valuable to customers such as offering plans with more
voice minutes and internet usage and maintaining our reputation for quality.

To support this strategy, we will also implement a new handset strategy and new
initiatives in our sales channel model, including a more efficient regional
approach. Our growth strategy is mainly focused on addressing the potential for
mobile Internet in the Brazilian market, particularly increasing mobile Internet
penetration and data traffic.

We believe mobile operators are in a strong position to address the demand for
broadband in Brazil, with the ability to provide flexible price plans including
the prepaid market affordable to the majority of the Brazilian population. The
lack of fixed infrastructure is still an issue for accessibility to fixed
broadband, especially in suburban areas, making mobile coverage more suitable
for such customers without broadband access. In addition to providing
affordability and coverage advantages, mobile operators appeal to the new
cultural demand for Internet connectivity at all times and in all places.

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The machine-to-machine market, or M2M, is also an area of opportunity for growth
with future applications to be developed. In addition, our strategy also
involves positioning TIM as a partner of our existing customer base, by
increasing their loyalty by offering exclusive products to existing customers,
focusing on value-added services in our offers, and by differentiation in our
products and services. Value-added services represent an important part of the
TIM strategy, as it is already a relevant market and has high growth rates with
the potential to increase revenue streams.


ENVIRONMENTAL AND SANITARY CONDITIONS OF GUANABARA BAY, RIO DE JANEIRO

Recent value-added services that we have launched include TIM Music, TIM Protect
backup, antivirus, devices insurance and plans that include unlimited usage of
the WhatsApp messaging application. Such services are generally launched through
a partnership with an established over the top player. We believe the foregoing
strategies will allow us to strengthen customer loyalty without requiring us to
incur higher costs, as increased traffic within our own network does not
significantly increase our operational costs.

We are constantly seeking new customers through new marketing efforts and
promotional initiatives. Capitalizing on fixed-mobile substitution in voice and
traditional services. We seek to capitalize on the existing opportunity of
fixed-mobile substitution in voice and data traffic and encourage the use of
mobile devices, rather than fixed lines, for long distance communication and
Internet. We believe that the main advantage of our product offerings is that
our users are able to use our growing mobile network. In the voice market, this
strategy has been successful in part due to the limited service offerings of
other long distance carriers in Brazil and the acceleration of fixed-mobile
substitution.

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We have become the market leader in the long distance telecommunications market
based on our market share. Fixed-mobile substitution is still evident in
Brazilian market, as fixed telephony operators have experienced a decline in
revenues. Since we are primarily a mobile operator with robust network
infrastructure, the impact of any reduction in the fixed telephony market does
not impact our performance and we therefore encourage the acceleration of
fixed-mobile substitution, which in turn increases demand for our services.

As already mentioned, TIM is also targeting the residential broadband market
through its 4G mobile broadband network, using WTTx technology, connecting homes
to the Internet by using a router that connects to our 4G mobile network. We
believe such product can be suitable specially for areas with poor fixed
broadband infrastructure as our 4G coverage is growing rapidly.

Providing Internet access to everyone. We intend to provide universal Internet
access to all classes, offering our prepaid and postpaid customers competitive
data usage plans through wireless handsets or other data devices e. Our focus on
increased data usage among our customers is also influenced by our ability to
effectively manage our handset and accessories sales, with a primary focus on
smartphone models that provide for quality Internet access at a low cost.

This approach has allowed us to offer our services at a highly competitive
price, offer convenient payment methods, meet market demand and allow for
opportunities for innovation. The result of this strategy can be seen in the
increase in our number of data users from Leading mobile internet growth in our
sector is a key pillar of our strategy, since we see this as the most important
market in terms of growth and size in the foreseeable future.

Our marketing efforts have also been designed to stimulate internet usage and
leverage our 3G and 4G networks by providing for suitable and affordable
postpaid and prepaid internet plans. Construction of a unique infrastructure
network in the Brazilian market and improving our network. We are committed to
developing a robust network infrastructure capable of serving our customer base
and anticipating new trends and technologies in the industry.

The development of this infrastructure requires both organic planning and
infrastructure development projects for the existing network and inorganic
acquisitions investments. As part of our strategy to focus our investments in
infrastructure, we acquired Intelig in December in page to establish our own
fiber optic network and develop automation projects and acquired the company
formerly known as AES Atimus later TIM Fiber and now TIM Celular in to
strengthen and expand our fiber optic network.

In , we carried out this strategy through ongoing investments in projects that
will continue to differentiate and strengthen our network, such as the
construction of new fiber optic networks in the north and northeast of Brazil.
We have expanded our Mobile BroadBand, or MBB, project, which was launched in ,
to 20 clusters, totaling cities to be covered during and , providing improved
data transmission for mobile broadband users through an expanded high-speed
fiber optic network and new functionalities in the core and access networks. The
cluster concept expands the targeted zones to metropolitan areas of cities that
were included in the MBB project in , aiming to provide high quality experience
in broadband mobility.

The cluster perimeter includes the state capitals and their metropolitan areas,
conurbation cities, major coastal cities and main primary access roads. Besides
improving our core infrastructure, TIM has been rolling out an aggressive plan
for 4G coverage, which has placed TIM as the undisputed leader in 4G coverage in
Brazil, achieving more than 1, cities with such technology in , considerably
ahead of its competitors. This positions TIM as having the best coverage and the
best mobile broadband technology, creating the possibility of an improved market
position, particularly for high end customers.

Moreover, TIM has also been investing in 3G technology, achieving nearly 2,
cities covered in Expansion into new businesses and continued strength in
recently expanded sectors.

In , we had a base of Our success with TIM Live has resulted from a strategy of
transparent communication and a commitment to deliver the services that the
consumer actually purchased, which differentiates us from local market practice.
We have 2G coverage. The map below shows our national coverage areas,
considering 2G, 3G and 4G coverage:. The following table shows combined
information regarding the Brazilian mobile telecommunications market and our
customer base, coverage and related matters, at the dates indicated. Mobile
Service Rates and Plans. Under our current authorizations, we are allowed to set
prices for our service plans, provided that such amounts do not exceed a
specified inflation adjusted cap.


INFORMATION SOURCE, STUDY POPULATION AND INDICATORS

Anatel must ratify our basic and other service plans, but its focus is on
compliance with the relevant regulatory rules rather than the prices charged.
Per minute prices decrease as customers commit to purchasing more minutes per
month. Prices can also vary depending on the type of call for example, calls
from other operators on fixed lines or calls outside of the network for mobile
calls or the location of the parties on a call.

Anatel regulations require mobile telecommunications providers to offer service
to all individuals regardless of income level. If a customer fails to make
timely payment, services can be interrupted. We offer mobile services under a
variety of rate plans to meet the needs of different customer classification,
including our corporate customers. The rate 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.

Our postpaid plans include the following charges:. Certain plans include the
cost of national roaming and long distance in the price per minute so that all
calls within Brazil cost the same amount per minute.

Some postpaid plans are designed for high and moderate usage subscribers, who
are typically willing to pay higher monthly fees in exchange for minutes
included in the monthly service charge while other plans are designed to satisfy
the more limited needs of low-usage postpaid subscribers. We also offer
customized services to our corporate clients, which may include local call rates
between employees wherever located in Brazil. We offer a single prepaid plan
with promotional offerings, which does not include monthly charges.

We have agreements with large national retail stores chains, in addition to
partnerships with regional retail stores chains, to offer online recharge.
Customers can also recharge straight from their mobile handsets using credit
cards such as Visa, MasterCard or Diners Club. In , TIM launched a new portfolio
to provide a complete mobile communications solution, which combines voice, data
and SMS.

We believe the new portfolio will reinforce the strength of our innovative
marketing positioning, while maintain our customer base revenues. Within the
consumer business, our main plans include:. Prepaid Plans. As a complementary
offering to our prepaid plans, we also established new terms of usage of data
package for our daily offers, wherein data is not interrupted but speed is
reduced. Post-Paid Plans. Controle Plans. Once customers of control plans have
reached the limit of their data plan, the data transmission is no longer
available and the user has two options: i to repurchase a data package or ii to
wait for the next data period to commence, which varies by plan, at which point
his data availability and usage limit are renewed in full.

Postpaid customers can also purchase a data package to navigate in full speed
but the usage is not blocked when he reaches the limit of his data package. In ,
we continued to improve our positioning towards the large companies as potential
clients, offering a variety of corporate solutions for mobile or fixed services
both voice and data , as well as value-added services and mobile-to-mobile
services.

The approach for these top clients are driven by customized solutions and a
premium customer service focus. TIM Empresa Tarifa Flat plans represent a major
innovation in the Brazilian market because it significantly reduced the bill
shock risk to our clients. To meet the market demand, we had major launches in A
main focus during recent years has been to improve the plans based upon specific
needs demonstrated to us. In , for example, we introduced loyalty clauses into
new month contracts, with the goal of strengthening customer loyalty.

These loyalty-based contracts are available with all renewed corporate customer
plans. The following presents a brief summary of certain key elements of our
Internet corporate offerings:. We also provide flexibility for our Senior
Account Channel, allowing negotiations with a high level of discounts. We are
constantly seeking to increase value to our customers through innovative offers
and products, and was no exception.

Under various postpaid mobile plans some value-added services are included in
the monthly subscription charge at a specified level of usage. The following is
a brief summary of our principal value-added service offerings to consumers and
corporate customer groups:.

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