Net Servicos (NETC) is the largest pay-television operator in Latin America, based upon the number of subscribers. As of the third quarter 2007, the company had around 2.4 million subscribers for the pay TV segment, 419,000 subscribers for the digital video segment, 1.29 million subscribers for the broadband segment and 469,000 subscribers for the voice service segment. Net operates in more than 40 different cities in Brazil. Its cabling network reaches more than 35 thousand kilometers, running through nearly 8.9 million homes. The company is also the leading provider of high-speed cable modem internet access, using the brand name Virtua, and during 2006 it started its voice service business. The company is also able to offer more value-added programming options and services, including audio channels, pay-per-view programs, and other interactive services.
The company began its operations in 1991 with the name of Multicanal Participa es S.A. by acquiring a group of small cable TV operators and additional operational licenses for several places in Brazil. In 1993 and 1994, two new partners, Globopar and Ralph Partners II, joined in with the original partner, Mr. Ant nio Dias Leite. In September 1998, the main assets, liabilities, and operations of Globo Cabo Participa es S.A, were incorporated into the company. As a result, Globo Cabo Holding increased its share hold by means of a conversion of shares from Globo Cabo Participa es S.A. into new company shares. In this same period, the company changed its corporate name to Globo Cabo S.A. In May 2002, the company changed its corporate name to Net Servicos de Comunica o S.A.. After going through a difficult period between 1999 and 2003, the company began a debt restructuring program that ended in March 2005. During 2005, Latam do Brasil, a subsidiary of Telmex (TMX) acquired 37.4% of the capital of Net Servicos, and in the end 2005, Embratel, which is also controlled by Telmex, incorporated Latam do Brasil. The acquisition of Latam do Brasil by Embratel was positive for Net Servicos because it opened a new wide range of possibilities for the company. On October 2006, NETC entered into a share purchase agreement with the shareholders of Vivax. Vivax was a small cable TV operator focused in the State of Sao Paulo, a strategic area for the future growth of NETC. On December 5, 2006 the deal was completed and NETC become the holder of 36.7% of Vivax capital.