| Property, plant and equipment |
| 15. | Property, plant and equipment |
Property, plant and equipment are measured at acquisition and/or construction
cost, less accumulated depreciation and impairment losses (the latter only if applicable). Depreciation is calculated based on the straight-line
method over terms that consider the expected useful lives of the assets and their residual values. On December 31, 2025 and
December 31, 2024, the Company has no indicators of impairment in its property, plant and equipment.
The estimated costs of dismantling towers and equipment on rented
properties are capitalized and depreciated over the estimated useful lives of these assets. The Company recognizes the present value of
these costs in property, plant and equipment against the account “provision for future asset decommissioning”. The interest
incurred in updating the provision is classified as financial expenses.
Gains and losses on disposal are determined by comparing the amounts of
these disposals with the book value at the time of the transaction and are recognized in “other income (expenses), net” in
the statement of income.
| · | Changes in property, plant and equipment |
| Schedule of changes in property, plant and equipment |
|
|
|
|
|
| |
Balance in 2024 |
Additions |
Write-offs |
Transfers |
Balance in 2025 |
| |
| Total cost of property, plant and equipment, gross |
75,732,043 |
5,655,358 |
(321,965) |
- |
81,065,436 |
| Commutation/transmission equipment |
41,197,166 |
- |
(105,762) |
2,384,096 |
43,475,500 |
| Fiber optic cables |
791,983 |
- |
- |
6,754 |
798,737 |
| Leased handsets |
4,256,120 |
1,230 |
(43,654) |
202,756 |
4,416,452 |
| Infrastructure |
7,925,713 |
- |
(19,824) |
323,614 |
8,229,503 |
| Informatics assets |
1,806,939 |
- |
(3,814) |
9,075 |
1,812,200 |
| General use assets |
1,047,340 |
- |
(1,253) |
53,700 |
1,099,787 |
| Right-of-assets |
18,028,112 |
2,709,339 |
(146,461) |
- |
20,590,990 |
| Land |
38,084 |
- |
(98) |
- |
37,986 |
| Construction in progress |
640,586 |
2,944,789 |
(1,099) |
(2,979,995) |
604,281 |
| |
|
|
|
|
|
| Total accumulated depreciation |
(52,916,715) |
(5,137,955) |
160,685 |
- |
(57,893,985) |
| Commutation/transmission equipment |
(30,962,551) |
(2,766,864) |
101,577 |
- |
(33,627,838) |
| Fiber optic cables |
(705,143) |
(26,317) |
- |
- |
(731,460) |
| Leased handsets |
(3,956,664) |
(222,943) |
35,910 |
- |
(4,143,697) |
| Infrastructure |
(5,660,027) |
(358,057) |
18,491 |
- |
(5,999,593) |
| Informatics assets |
(1,748,687) |
(25,537) |
3,804 |
- |
(1,770,420) |
| General use assets |
(803,591) |
(51,091) |
903 |
- |
(853,779) |
| Right-of-assets |
(9,080,052) |
(1,687,146) |
- |
- |
(10,767,198) |
| Total property, plant and equipment, net |
22,815,328 |
517,403 |
(161,280) |
- |
23,171,451 |
| Commutation/transmission equipment |
10,234,615 |
(2,766,864) |
(4,185) |
2,384,096 |
9,847,662 |
| Fiber optic cables |
86,840 |
(26,317) |
- |
6,754 |
67,277 |
| Leased handsets |
299,456 |
(221,713) |
(7,744) |
202,756 |
272,755 |
| Infrastructure |
2,265,686 |
(358,057) |
(1,333) |
323,614 |
2,229,910 |
| Informatics assets |
58,252 |
(25,537) |
(10) |
9,075 |
41,780 |
| General use assets |
243,749 |
(51,091) |
(350) |
53,700 |
246,008 |
| Right-of-assets |
8,948,060 |
1,022,193 |
(146,461) |
- |
9,823,792 |
| Land |
38,084 |
- |
(98) |
- |
37,986 |
| Construction in progress |
640,586 |
2,944,789 |
(1,099) |
(2,979,995) |
604,281 |
| |
Balance in 2023 |
Additions |
Write-offs |
Transfers |
Balance in 2024 |
| |
| Total cost of property, plant and equipment, gross |
70,343,331 |
5,978,275 |
(589,563) |
- |
75,732,043 |
| Commutation/transmission equipment |
38,274,244 |
- |
(97,312) |
3,020,234 |
41,197,166 |
| Fiber optic cables |
786,762 |
- |
- |
5,221 |
791,983 |
| Leased handsets |
4,082,742 |
842 |
(15,341) |
187,877 |
4,256,120 |
| Infrastructure |
7,737,385 |
- |
(18,007) |
206,335 |
7,925,713 |
| Informatics assets |
1,803,782 |
- |
(4,220) |
7,377 |
1,806,939 |
| General use assets |
1,004,301 |
- |
(2,382) |
45,421 |
1,047,340 |
| Right-of-assets |
15,973,178 |
2,506,600 |
(451,666) |
- |
18,028,112 |
| Land |
38,588 |
- |
(504) |
- |
38,084 |
| Construction in progress |
642,349 |
3,470,833 |
(131) |
(3,472,465) |
640,586 |
| |
|
|
|
|
|
| Total accumulated depreciation |
(47,931,516) |
(5,109,364) |
124,165 |
- |
(52,916,715) |
| Commutation/transmission equipment |
(28,413,977) |
(2,639,864) |
91,290 |
- |
(30,962,551) |
| Fiber optic cables |
(644,978) |
(60,165) |
- |
- |
(705,143) |
| Leased handsets |
(3,761,002) |
(206,398) |
10,736 |
- |
(3,956,664) |
| Infrastructure |
(5,325,647) |
(350,734) |
16,354 |
- |
(5,660,027) |
| Informatics assets |
(1,715,818) |
(36,981) |
4,112 |
- |
(1,748,687) |
| General use assets |
(755,528) |
(49,736) |
1,673 |
- |
(803,591) |
| Right-of-assets |
(7,314,566) |
(1,765,486) |
- |
- |
(9,080,052) |
| Total property, plant and equipment, net |
22,411,815 |
868,911 |
(465,398) |
- |
22,815,328 |
| Commutation/transmission equipment |
9,860,267 |
(2,639,864) |
(6,022) |
3,020,234 |
10,234,615 |
| Fiber optic cables |
141,784 |
(60,165) |
- |
5,221 |
86,840 |
| Leased handsets |
321,740 |
(205,556) |
(4,605) |
187,877 |
299,456 |
| Infrastructure |
2,411,738 |
(350,734) |
(1,653) |
206,335 |
2,265,686 |
| Informatics assets |
87,964 |
(36,981) |
(108) |
7,377 |
58,252 |
| General use assets |
248,773 |
(49,736) |
(709) |
45,421 |
243,749 |
| Right-of-assets |
8,658,612 |
741,114 |
(451,666) |
- |
8,948,060 |
| Land |
38,588 |
- |
(504) |
- |
38,084 |
| Construction in progress |
642,349 |
3,470,833 |
(131) |
(3,472,465) |
640,586 |
The construction in progress represents the cost of projects in
progress related to the construction of networks and/or other tangible assets in the period of their construction and installation,
until the moment they come into operation, when they will be transferred to the corresponding accounts of these assets. Since the
capitalization criteria set forth in IAS 23 have not been met, the costs of loans are classified as financial expenses in the
period in which they are incurred.
The lease rights of use are represented by leased agreements of identifiable
assets within the scope of IFRS16. These rights refer to leases of network infrastructure, stores and kiosks, real estate, land (Network)
and fiber, as below:
| Schedule of right of use in lease |
|
|
|
|
|
| Right of use in leases |
Network infrastructure |
Shops & kiosks and real estate |
Land (Network) |
Fiber |
Total |
| Balances on December 31, 2024 |
4,587,122 |
1,166,143 |
2,002,527 |
1,192,268 |
8,948,060 |
| Additions (i) |
1,251,461 |
332,877 |
334,802 |
790,199 |
2,709,339 |
| Remeasurement |
(95,642) |
(3,405) |
(31,433) |
(15,981) |
(146,461) |
| Depreciation |
(745,509) |
(177,378) |
(294,224) |
(470,035) |
(1,687,146) |
| Balances on December 31, 2025 |
4,997,432 |
1,318,237 |
2,011,672 |
1,496,451
|
9,823,792 |
| |
|
|
|
|
|
| Right of use in leases |
Network infrastructure |
Shops & kiosks and real estate |
Land (Network) |
Fiber |
Total |
| Balances on December 31, 2023 |
4,677,149 |
833,391 |
2,351,707 |
796,365 |
8,658,612 |
| Additions (i) |
879,180 |
514,188 |
227,158 |
886,074 |
2,506,600 |
| Remeasurement |
(223,341) |
(22,824) |
(205,501) |
- |
(451,666) |
| Depreciation |
(745,866) |
(158,612) |
(370,837) |
(490,171) |
(1,765,486) |
| Balances on December 31, 2024 |
4,587,122 |
1,166,143 |
2,002,527 |
1,192,268 |
8,948,060 |
| |
|
|
|
|
|
| (i) |
The change in the right of use in leases includes net additions of lease incentives, totaling R$ 108 million on December 31, 2025
(R$ 89 million on December 31, 2024). |
| Schedule of depreciation rates |
|
|
| |
|
Annual % |
| Commutation/transmission equipment |
|
6.67−20 |
| Fiber optic cables |
|
10 |
| Leased handsets |
|
14.28−50 |
| Infrastructure |
|
4–20 |
| Informatics assets |
|
20 |
| General use assets |
|
10–20 |
| Right-of-use in leases |
|
8−12 |
| |
|
|
In 2025, pursuant to IAS 16, the Company assessed the useful life estimates
for their property, plant and equipment, concluding that there were no significant changes or alterations to the circumstances on which
the estimates were based that would justify changes to the useful lives currently in use.
|