| PROVISION AND CONTINGENCIES | 20.a. Accounting policy Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, when it is probable that economic benefits are required to settle the obligation and a reliable estimate of the value of the obligation can be made. Provision is restated at the balance sheet date considering the likely amount of loss and the nature of each provision. Provision amounts for contingencies are presented at their gross amount, less the corresponding judicial deposits, and are classified as provision for labor, tax, civil, and regulatory contingencies. Judicial deposits are classified as assets given that the conditions required for their net presentation with provision do not exist. The Company also discloses the contingencies in circumstances where management concludes (i) no loss is probable or reasonably estimable, but it is reasonably possible that a loss may be incurred; or (ii) in case of income tax pending litigations, it is probable that the taxation authority will accept the uncertain tax treatment. 20.b. Critical estimates and judgments The obligation arising from the provisions can be legal or constructive, derived from, among other factors, regulations, contracts, customary practices or public commitments that expose third parties to a valid expectation that the Company or its subsidiaries will assume certain responsibilities. The determination of the provision is based on the best estimate of the disbursement required to settle the corresponding obligation, considering the information available as at the closing date, including the opinion of independent experts, such as legal advisors. 20.c. Information and changes of provisions and contingencies Information on the composition and movement of provision, the unfavorable outcome of which is considered probable, in addition to contingent liabilities, provision for dismantling, amounts to be refunded to customers and provision for fines for cancellation of lease contracts, is presented below. Provision for legal demands: The Company and its subsidiaries are party to administrative; labor, tax, civil and regulatory claims; accounting provision are recorded in respect of claims when the likelihood of loss is classified as probable. The assessment of the likelihood of loss includes an analysis of available evidence, the hierarchy of laws, available case law, the latest court decisions law and their relevance in the legal system, as well as the advice of outside legal counsel. Provisions are reviewed and adjusted for changes in circumstances, such as the applicable statute of limitations, tax audit conclusions, or additional exposures identified based on new matters or court decisions. Contingent consideration (PPA): Refers to contingent liabilities arising from the PPA generated in the acquisition of control of VivoPart. in 2011, GVTPart. in 2015, Garliava and Vita IT in 2022), VSS (2023) and IPNET (2024), related to civil, labor and tax lawsuits at their fair value in the business combination. Provision for fines for canceling lease agreements: Refers to the provision for fines for canceling lease agreements arising from Garliava (company acquired by the Company in 2022), resulting from the sale or shutdown of sites. Provision for decommissioning of assets: Refers to costs to be incurred due to returning sites to owners (locations intended for tower and equipment installation on leased property) to the same condition as the date of execution of the initial lease agreement. These costs are provisioned and discounted to present value for the amounts expected to settle the obligation using estimated cash flows and they are recognized as part of the cost of the corresponding asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to decommissioning of assets. The financial effect of the discount is recorded as incurred and recognized in the statement of income as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to, or deducted from, the cost of the asset. Amounts to be refunded to customers): On July 23, 2022, Complementary Law No. 194, was enacted, addressing taxes on various sectors considered by the respective Law as essential and indispensable goods and services, leading to a reduction in the tax rate ICMS on communications services and the respective refund of these amounts to customers.The refunds to customers were recorded in the second half of 2022, as discounts granted and returns of gross operating revenue. Provision for contingencies Tax(1) Regulatory(1) Civil Labor Contingent liabilities (PPA) Provision for fines for canceling lease agreements (2) Provision for asset decommissioning Amounts to be refunded to customers Total Balance on December 31, 2022 2,483,427 1,869,035 1,192,900 540,190 978,072 482,620 462,705 601,882 8,610,831 Additions (reversal), net (Note 27.) 83,825 (64,452) 302,700 366,856 (27,186) (260,198) (79,836) — 321,709 Other additions (reversal) — — (690) — — — 8,971 — 8,281 Write-offs due to payment (18,770) (166,229) (493,828) (377,139) — (181,429) — (505,281) (1,742,676) Merger – Vita IT — — — — (18,227) — — — (18,227) Business combination – Vale Saúde Sempre 1,063 — — 936 887 — — — 2,886 Interest accruals (Note 28.) 203,778 122,512 225,913 162,869 69,355 — 15,406 — 799,833 Balance on December 31, 2023 2,753,323 1,760,866 1,226,995 693,712 1,002,901 40,993 407,246 96,601 7,982,637 Additions (reversal), net (Note 27) 40,063 (377,510) 251,429 420,471 (12,517) (10,798) (5,083) — 306,055 Other additions (reversal) (489,082) — — — (410) 14,929 9,642 — (464,921) Write-offs due to payment (70,922) (16,299) (340,327) (423,720) — (4,119) — (5,938) (861,325) Business combination – IPNET (Note 1.c.2.) 55,001 — — 31,669 8,964 — — — 95,634 Net interest accruals (Note 28.) (265,396) (215,962) 273,044 213,409 76,201 — 409 — 81,705 Balance on December 31, 2024 2,022,987 1,151,095 1,411,141 935,541 1,075,139 41,005 412,214 90,663 7,139,785 Balance on December 31, 2023 Current 15,034 32,363 334,152 381,606 — 40,993 222 96,601 900,971 Non-current 2,738,289 1,728,503 892,843 312,106 1,002,901 — 407,024 — 7,081,666 Total 2,753,323 1,760,866 1,226,995 693,712 1,002,901 40,993 407,246 96,601 7,982,637 Balance on December 31, 2024 Current 160,947 195,063 573,679 701,300 5,075 41,005 3,265 90,663 1,770,997 Non-current 1,862,040 956,032 837,462 234,241 1,070,064 — 408,949 — 5,368,788 Total 2,022,987 1,151,095 1,411,141 935,541 1,075,139 41,005 412,214 90,663 7,139,785 (1) In 2024, relevant events occurred in the movements of provisions, being: (i) Tax: write-off of R$885,471 due to the Company's adherence to tax amnesty programs in the States of SP and PR, with gains from the reversal of operating expenses of provision for contingencies of R$26,546 (Note 27), gains from the reversal of financial expenses of monetary update of provisions for contingencies of R$374,271 (Note 28) and assumption of debt of R$484,654 (Note 21); and (ii) Regulatory: write-off of R$792,378 due to the Commitment Agreement Associated with the Self-Composition Negotiations for Adapting the STFC Concession Contracts to Authorization Instruments (Note 1.b.), with gains from the reversal of operating expenses of provision for contingencies of R$386,392 (Note 27.) and gains from the reversal of financial expenses of monetary restatement of provisions for contingencies of R$405,986 (Note 28.). (2) In 2023, net inflows (reversals) refer to the net gain from negotiations with TowerCo, resulting from lease agreements arising from the acquisition of Garliava in 2022. 20.c.1. Tax provision and contingencies Tax Amnesty Programs State of São Paulo Amnesty Program – Law 17,843/2023 The Government of the State of São Paulo established, through Law 17,843/2023, a debt settlement and installment program to encourage the regularization of debts by offering discounts (“Amnesty and Refinancing Program”). Based on the Law, the State Attorney General's Office (“PGE”) published notice no. 01/2024 enabling the transaction of ICMS debts, subject to late payment interest charges, higher than the SELIC, as long as in the courts with title executive (registration in Active State Debt). The current discounts were 100% for late payment interest and 50% of the remaining balance, limited to the principal amount of the debt. Fees were charged to PGE on the total amount. On April 22, 2024, the Company's Management, based on the opinion of its legal advisors, joined the Amnesty and Refinancing Program, for ICMS disputes, for the provisioned amount of R$727,821 , which under according to the rules of the Program was reduced to R$371,052, which will be paid in up to 60 installments adjusted by the SELIC interest rate (Note 21). State of Paraná Amnesty Program – Law 20,946/2021 The Government of the State of Paraná, through Law No. 20,946/2021, offered a debt settlement and installment program to taxpayers to encourage the regularization of debts with discounts (“Amnesty and Refinancing Program”). Based on the Law, Decree No. 5,471/2024 was issued, allowing payment with a 70% reduction in fines and interest. Fees were levied on the total reduced amount for the PGE. On September 20, 2024, the Company's Management, based as advised by its legal counsel, joined the Amnesty and Refinancing and Refinancing Program ICMS disputes, based on the provisioned amount of R$157,650 , which under the Program, was reduced to R$113,602 , which will be paid in up to 60 installments adjusted by the SELIC interest rate (Note 21). Nature/Degree of Risk 12.31.2024 12.31.2023 Provisions 2,022,987 2,753,323 Federal 809,765 796,996 State 466,590 1,329,319 Municipal 136,995 48,917 FUST 609,637 578,091 Possible losses 40,850,071 36,963,009 Federal 4,419,439 3,534,240 State 25,760,365 23,130,420 Municipal 682,468 633,097 FUST, FUNTTEL and FISTEL 9,987,799 9,665,252 20.c.1.1. Tax provisions Management, under advice of legal counsel, believes that the following losses present a probable risk of loss for the federal, state, municipal and regulatory (FUST) tax proceedings: Federal taxes The Company and/or its subsidiaries are party to administrative and legal proceedings at the Federal level relating to: (i) claims for the non-ratification of compensation and refund requests formulated; (ii) IRRF and CIDE on remittances abroad related to technical and administrative assistance and similar services, as well as royalties; (iii) Social Investment Fund ( Finsocial ) offset amounts; (iv) additional charges to the PIS and COFINS tax base, as well as additional charges to COFINS required by Law No. 9,718/1998; and (v) ex-tariff, cancellation of the benefits under CAMEX Resolution No. 6, increase in the import duty from 4% to 28%. State taxes The Company and/or its subsidiaries are party to administrative and judicial proceedings at the State level for ICMS, regarding: (i) disallowance credits; (ii) non-taxation of alleged telecommunications services; (iii) tax credit for challenges/disputes over telecommunication services not provided or wrongly charged (Agreement 39/01); (iv) rate differential; (v) leasing of infrastructure for internet services (data); (vi) outflows of goods with prices lower than those of acquisition; (vii) non-taxation discounts to customers; (viii) unmeasured services; (ix) CIAP credit; (x) monthly subscription, not covered by the modulation of the effects resulting from the judgment of the STF; and (xi) fine for non-compliance with an accessory obligation. Municipal taxes The Company and/or its subsidiaries are party to Municipal tax proceedings, at the judicial level, relating to: (i) Property tax (“IPTU“); (ii) Services tax (“ISS“) on equipment leasing services, non-core activities and supplementary activities and withholding of ISS on contractors' services. FUST The Company and/or its subsidiaries have judicial proceedings related to the non-inclusion of interconnection expenses and industrial exploitation of a dedicated line in the calculation basis of FUST. 20.c.1.2. Possible losses – tax contingencies Management, under advice of legal counsel, believes that the risk of loss for the following federal, state, municipal and regulatory (FUST, FUNTTEL and FISTEL) is possible: Federal taxes The Company and/or its subsidiaries are party to administrative and judicial proceedings, at the Federal level, which are awaiting decision at different court levels. The more significant proceedings are: (i) contested non approval of requests for compensation submitted by the Company; (ii) INSS (a) SAT, social security amounts owed to third parties (INCRA and SEBRAE); (b) meals for employees, withholding of 11% (assignment of workforce); and (c) Stock Options – requirement of social security contributions on amounts paid to employees under the stock option plan; (iii) deduction of COFINS on swap operation losses; (iv) PIS and COFINS: (a) accrual basis versus cash basis; (b) levies on value-added services; and (c) monthly subscription services; (v) IPI levied on shipment of fixed access units from the Company's establishment; (vi) Financial transaction tax (IOF) – on loan transactions, intercompany loans and credit transactions; (vii) IRRF on capital gain on the sale of the GVT Group to the Company; and (viii) exclusion of ICMS from the PIS and COFINS calculation base. State taxes The Company and/or its subsidiaries are party to administrative and judicial proceedings, at the State level, related to ICMS, which are awaiting decision at different court levels: (i) rental of movable property; (ii) reversal of previously unused credits; (iii) service provided outside the State of São Paulo paid to the State of São Paulo; (iv) co-billing; (v) tax substitution with a fictitious tax base (tax guideline); (vi) use of credits on acquisition of electric power; (vii) secondary activities, value added and supplementary services; (viii) tax credits related to claims/challenges regarding telecommunications services not provided or mistakenly charged (Agreement 39/01); (ix) deferred collection of interconnection (“DETRAF“ – Traffic and Service Provision Document); (x) credits derived from tax benefits granted by other states; (xi) disallowance of tax incentives related to cultural projects; (xii) transfers of assets among business units owned by the Company; (xiii) communications service tax credits used in provision of services of the same nature; (xiv) card donation for prepaid service activation; (xv) reversal of credit from return and free lease in connection with assignment of networks (used by the Company itself and exemption of public bodies); (xvi) CDR/DETRAF fine; (xvii) own consumption; (xviii) exemption of public bodies; (xix) discounts granted; (xx) monthly subscription with discussion about minutes allowance; and (xxi) fine for non-compliance with an accessory obligation. Municipal taxes The Company and/or its subsidiaries are party to administrative and judicial proceedings, at the Municipal level, which are awaiting decision at different court levels. The more significant proceedings are: (i) ISS on: (a) non-core activity, value-added and supplementary services; (b) withholding at source; (c) call identification and mobile phone licensing services; (d) full-time services, provision, returns and cancelled tax receipts; (e) data processing and antivirus; (f) charge for use of mobile network and lease of infrastructure; (g) advertising services; and (h) services provided by third parties; (ii) IPTU; (iii) land use tax; and (iv) various municipal charges. FUST, FUNTTEL and FISTEL Universal Telecommunications Services Fund (“FUST“) Writs of mandamus were filed seeking the right to exclude revenues from interconnection and Industrial Use of Dedicated Line (“EILD“) in the FUST tax base, according to Abridgment No. 7 of December 15, 2005, as it does not comply with the provisions contained in the sole paragraph of Article 6 of Law No. 9,998/2000, which are awaiting a decision from Higher Courts. Various administrative and judicial charges by ANATEL in administrative scope for the constitution of the tax credit related to interconnection, EILD and other revenues that do not originate from the provision of telecommunication services. On December 31, 2024, the consolidated amount totaled R$5,813,657 ( R$5,575,026 on December 31, 2023). Fund for Technological Development of Telecommunications (“FUNTTEL“) Proceedings have been filed for the right not to include interconnection revenues and any others arising from the use of resources that are party of the networks in the FUNTTEL calculation basis, as determined by Law 10,052/2000 and Decree No. 3,737/2001, thus avoiding improper application of Article 4, paragraph 5, of Resolution 95/2013. There are several notifications of charges from the Ministry of Communications in administrative actions for constitution of the tax credit related to the interconnection, network resources and other revenues that do not originate from the provision of telecommunication services. On December 31, 2024, the consolidated amount totaled R$2,085,332 (R$1,828,910 on December 31, 2023). Telecommunications Inspection Fund (“FISTEL“) There are judicial actions for the collection of TFI on: (i) extensions of the term of validity of the licenses for use of telephone exchanges associated with the operation of the fixed switched telephone service; and (ii) extensions of the period of validity of the right to use radiofrequency associated with the operation of the telephone service personal mobile service. On December 31, 2024, the consolidated amount totaled R$2,088,810 (R$2,261,316 on December 31, 2023). 20.c.2. Regulatory provision and contingencies Regulatory Amnesty - Approval by the Attorney General's Office ("AGU") The Federal Attorney General's Office ("PGF") published Notice of Transaction by Adhesion No. 1/2024/PGF/AGU, supported by Law No. 14,973, of September 16, 2024, and by Normative Ordinance PGF No. 150, disclosing the possibility of extraordinary transaction of active debts with federal public agencies and foundations, which includes Regulatory Agencies. On December 30, 2024, the Company's Management, based on the opinion of its legal advisors, submitted a request to adhere to the extraordinary transaction, the discount for which was approximately 55%. The total amount was subject to fees for the PGF. The Company's application for membership was granted on February 12, 2025, and the transaction will be completed upon payment of the corresponding Federal Collection Guides. Nature/Degree of Risk 12.31.2024 12.31.2023 Provisions 1,151,095 1,760,866 Possible losses 3,066,637 6,765,178 The variation in amounts between the comparative periods is mainly due to the write-offs of provisions resulting from the Commitment Term Related to the Self-Composition Negotiations for Adapting the STFC Concession Contracts to Authorization Instruments (Note 1.b.). 20.c.2.1. Regulatory provisions Management, under advice of legal counsel, believes the likelihood of loss of the following regulatory proceedings is probable, described below: The Company is a party to administrative proceedings initiated mainly by ANATEL, which were initiated on the grounds of alleged non-compliance with obligations established in sectoral regulations, as well as in legal proceedings that discuss, in the vast majority, sanctions applied by ANATEL at the administrative level. The main themes of these processes are: • Burden: Specifically in relation to the payment of burden applied to the Personal Mobile Service - SMP (SMP burden), there is a dispute that discusses which revenues should be considered in the payment of amounts due for the renewal of radio frequencies. On this subject, the Company, together with its legal advisors, assesses that there is a prognosis of probable loss in the SMP burden regarding data revenue, due to the existence of unfavorable decisions both at ANATEL in 2021 and in court, with an unlikely prospect of review, as well as the fact that the Company decided to prospectively collect such amounts in favor of ANATEL, starting in 2022. • General User Rights (“DGU”): The Company and/or its subsidiaries maintain administrative and judicial discussions regarding the rights of users of telecommunications services, with regard to matters related to the General Regulation of Consumer Rights of Telecommunications Services (“RGC”), approved by Resolution No. 632/2014, especially regarding the provision of services, collection of amounts, disputes, reimbursement, among others. • Quality: The Company and/or its subsidiaries maintain administrative and judicial discussions regarding telecommunications services arising from STFC, SMP, SeAC and SCM concessions, regarding compliance with the indicators that measure the quality of these services nationwide, based on the Telecommunications Services Quality Regulation (“RQUAL”), approved by Resolution No. 717/2019. • Relationship between Providers: The Company and/or its subsidiaries maintain administrative and legal discussions affecting the regulatory relationship with other telecommunications service providers regarding interconnection, EILD, and the supply of other wholesale products. The amounts consolidated in the topics highlighted above totaled R$953,080 and R$1,457,859 on December 31, 2024 and 2023, respectively. Other cases: • The Company and/or its subsidiaries are involved in administrative and legal discussions regarding other matters, such as service interruptions, various regulatory obligations, technical irregularities, payment of public prices for the acquisition of radio frequencies, compensation for the vacancy of frequency bands previously granted to the MMDS, Public Civil Actions, among others. • On October 1, 2024, the Company became aware of the establishment of a Monitoring and Control Procedure ("PAC") for Reimbursement to monitor compliance with the obligation to repair consumers identified in a Procedure for Determining Non-Compliance with Obligations ("PADO") that is in progress. As the original PADO has not yet had its final decision, a request was made to suspend the PAC, which was accepted by ANATEL through a Decision. The amounts consolidated in the topics highlighted above totaled R$198,015 and R$303,007 on December 31, 2024 and 2023, respectively. 20.c.2.2. Possible losses – regulatory contingencies Management, under advice of legal counsel, believes the likelihood of loss of the following regulatory proceedings is possible, these being some of the relevant cases in this portfolio: • Dispute regarding revenues that should be included in the calculation of the amount of the burden due due to the extension of radio frequencies associated with SMP (except for SMP data revenues, as reported in item c.1 of this note). In ANATEL's view, the calculation of the burden should consider the application of the percentage of 2% on all economic profits resulting from the provision of the SMP service. In the Company's view, however, revenues that are not part of the SMP service plans, such as interconnection, revenues earned in the 15th year of the licenses' validity and others, should not be considered in the calculation of the burden. As a result of this divergence of understanding, the Company filed administrative claims and lawsuits to challenge ANATEL's burden charges. In July 2024, ANATEL's Board of Directors ruled on the PAC regarding the calculation of the burden for the 2016 biennium, related to the extension of the radio frequency associated with the SMP, the result of which was favorable to the Company, as it decided to include the terms with lesser scope in the calculation methodology, resulting in a reduction in amounts. Other proceedings may be impacted by this decision, with pending recalculation by ANATEL. It is estimated that with a possible loss prognosis of the SMP burden, the amounts will be approximately R$1,024,955 and R$907,905 on December 31, 2024 and 2023, respectively. Regarding the processes that discussed the collection of contractual charges due for the extension of the STFC concession contracts, it is important to highlight that such processes were part of the Commitment Term Associated with the Self-Composition Negotiations for Adapting the STFC Concession Contracts to Authorization Instruments, the current risk of which is remote. • The PADO for alleged violations of the fixed telephony regulation with a fine applied by ANATEL totaling R$199,075 as the principal amount and an updated amount (plus interest and monetary correction) of R$586,512 on December 31, 2023, was part of the Commitment Term Associated with the Self-Composition Negotiations for Adapting the STFC Concession Contracts to Authorization Instruments, whose current risk is remote. • Legal proceeding filed by the Company to nullify a decision by CADE, which found that the operators (Claro, Oi Móvel and the Company) engaged in anticompetitive conduct by forming the Rede Correios Consortium to compete in electronic auction No. 144/2015, held by the Brazilian Post and Telegraph Company; and that there was alleged price discrimination by the Company in relation to services offered to the company BT Brasil Serviços de Telecomunicações Ltda (“BT”), imposing a fine of R$28,394, the amount updated on December 31, 2024 was R$38,109. The purpose of this action is to seek the nullification of the aforementioned sanction, based especially on (i) the absence of illegality in the formation of a consortium to participate in a public bidding process; (ii) the lack of typicality and the impossibility of sanctioning by analogy; and (iii) the absence of clear criteria for calculating the sanction and the lack of reasonableness. The case is in the first instance awaiting a ruling. • The process instituted by ANATEL to investigate possible measures regarding the possible transfer of gains resulting from a decision by the STF, which excluded ICMS from the PIS/COFINS calculation basis between 2002 and 2017 in the concession plans, the amount of which on December 31, 2023 was R$1,408,746, was part of the Commitment Term Related to the Self-Composition Negotiations for Adapting STFC Concession Contracts to Authorization Instruments, the current risk of which is remote. • The PADO that deals with coverage targets for which the fine applied was R$127,741, the amount of which was updated on December 31, 2024, and was R$167,658, could be converted into an obligation to do so, which consists of an alternative means of complying with the fine, for investment in the installation of a 4G radio base station in 188 locations without this technology, the installation of which must occur in 2 and a half years, with maintenance costs equivalent to the period of 1 year. The installation cannot result from range sharing, swap, network rental, industrial exploration contracts, or other contractual means. After adherence and confirmation of consent by ANATEL, compliance within the determined period will be subject to monitoring. • On October 1, 2024, the Company became aware of the establishment of a Monitoring and Control Procedure ("PAC") for Reimbursement to monitor compliance with the obligation to provide compensation in the amount of R$35,968 to consumers identified in a Procedure for Determining Non-Compliance with Obligations ("PADO") that is in progress. As the original PADO has not yet had its final decision, a request was made to suspend the PAC, which was accepted by ANATEL through a Decision. The amounts consolidated in the topics highlighted above totaled R$1,266,690 and R$3,059,298 on December 31, 2024 and 2023, respectively. In addition to the specific cases above, the Company maintains administrative proceedings instituted mainly by ANATEL (other agents, including other operators, also have claims against the Company) based on alleged non-compliance with obligations established in the sectoral regulations, as well as ordinary legal proceedings and writs of mandamus that discuss, mainly, sanctions applied by ANATEL in the administrative sphere, mainly in relation to the same topics described in note 20.c.2.1, namely: General User Rights (“DGU”); Quality and Relationship between Providers. The consolidated amounts involved totaled R$1,398,084 and R$2,773,803 on December 31, 2024 and 2023, respectively. Other cases: • The Company and/or its subsidiaries are involved in administrative and legal discussions regarding other matters, such as coverage targets, service interruptions, various regulatory obligations, technical irregularities, payment of public prices for the acquisition of radio frequencies, compensation for the vacancy of frequency bands previously granted to the MMDS, Public Civil Actions, among others. • The Company is a party to legal proceedings that discuss the nullity of contractual clauses and obligations to do and not to do linked to the suspension of services, non-increase of tariffs, repairs and maintenance of poles, and which do not involve a specific financial value, considering that, at the current procedural stage in which they are found, they are inestimable. These proceedings are still awaiting judgment in the respective courts. The amounts consolidated in the matters highlighted above totaled R$401,863 and R$932,077 on December 31, 2024 and 2023, respectively. 20.c.3. Civil provision and contingencies Nature/Degree of Risk 12.31.2024 12.31.2023 Provisions 1,411,141 1,226,995 Possible losses 2,000,926 2,126,718 20.c.3.1. Civil provisions Management, under advice of legal counsel, believes that the following civil proceedings will result in probable losses: • The Company is a party to proceedings involving rights to the supplementary amounts from shares calculated on community telepho ny plants and network expansion plans since 1996 (supplement of share proceedings). These proceedings are at different stages: lower courts, court of justice and high court of justice. On December 31, 2024 and 2023 , the provision was R$152,109 and R$157,960, respectively. • The Company and/or its subsidiaries are party to various civil proceedings of an to individual consumer level, relating to the non-provision of services and/or products sold. On December 31, 2024 and 2023 , the provision was R$293,571 and R$304,454, respectively. • The Company and/or its subsidiaries are party to various civil proceedings of a collective consumerist and non-consumer nature at administrative and judicial levels, all arising in the ordinary course of business. On December 31, 2024 and 2023 , the provision was R$965,461 and R$764,581, respectively. 20.c.3.2. Possible losses – civil contingencies Management, under advice of legal counsel, believes that the risk of losses is possible for the following civil proceedings: • The Company and its subsidiaries are party to other civil claims, at several levels, related to service rendering rights. Such claims have been filed by individual consumers, civil associations representing consumer rights of consumers or by the Consumer Protection (“PROCON“), as well as by the Federal and State Public Prosecutor's Office. The Company is also party to other claims of several types related to the ordinary course of business. • Intellectual Property: Lune Projetos Especiais Telecomunicação Comércio e Ind. Ltda. (“Lune“), a Brazilian company, filed lawsuits on November 20, 2001, against 23 wireless carriers claiming to own the patent for “Bina“, a caller ID. The purpose of the lawsuit was to interrupt provision of such service by carriers and to seek indemnification equivalent to the amount paid by consumers for using the service. An unfavorable decision was handed down determining that the Company should refrain from selling mobile phones with the Bina ID service, subject to a daily fine of R$10,000.00 (Ten thousand Reais) in the event of non-compliance. Furthermore, according to that decision, the Company must pay indemnification for royalties, to be calculated on settlement. Motions for Clarification were proposed by all parties and Lune's motions for clarification were accepted since an injunctive relief in this stage of the proceedings was deemed applicable. A bill of review appeal was filed in view of the current decision which granted a stay of execution suspending the unfavorable decision until final judgment. A bill of review was filed in view of the sentence handed down on June 30, 2016, by the 4th Chamber of the Court of Justice of the Federal District, in order to annul |
