The telecommunications industry has been experiencing fast growth in the last years, especially in the mobile market. In Brazil, this growth occurred after the privatization of the old Telebrás system, opening the market to new national and international competing companies interested in exploring a repressed demand market and at the same time with a high growth potential. Because of the intense competitive nature of the telecommunications industry, companies were forced to invest great sums on upgrading and improving its network and infrastructure, while giving big discounts to new costumers. For these reasons, Oi decided to create a strategic alliance with Souza Cruz in the distribution of products and services, so as to reduce its operational costs and to create value for the company, stepping up its competitiveness compared to other great multinational competitors in this business.