Due to new Personal Communication Services (“PCS”) providers that have commenced operations in recent years, we are facing increased competition throughout Brazil. The opening of the Brazilian market to competition for telecommunications services has adversely affected the industry’s historical margins. In September 2008, following the worsening of the international financial crisis and its adverse effects on the Brazilian economy, COPOM began to shift to an expansionist monetary policy cutting the SELIC rate by 100 basis points in to 12.75% p.a. Before September 2008, the Federal Government maintained a restrictive monetary policy, due to inflationary pressures, increasing interest rates by 250 basis points between April and September 2008, and pushing the SELIC rate (the official interest rate published by the Central Bank), from 11.25% p.a. Despite the adverse scenario that gripped the country in the last quarter of 2008, real economic growth in 2008 was more than 5% due to the strong economic growth in the first nine months. The new economic scenario that impacted the country's economy from October resulted in a slowdown in economic activity in the past quarter in a yearly comparison. The net contribution of domestic demand to GDP growth in the first nine months of 2008 was 8.1 percentage points, while the foreign demand had a net negative impact of 2.5 p.p. In 2008, the Brazilian economy performed well until the third quarter, growing by 6.38%, which was across all components of GDP and was fully driven by domestic demand. Operating and Financial Review and Prospects,” and include, but are not limited to, statements regarding our intent, belief or current expectations with respect to: These statements appear in a number of places in this annual report, principally in “Item 4. Our actual results and performance could differ substantially from those anticipated in our forward-looking statements. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “predict,” “project” and “target” and similar words are intended to identify forward-looking statements, which necessarily involve known and unknown risks and uncertainties. Statements that are not statements of historical fact, including statements about the beliefs and expectations of our management, are forward-looking statements. We, and our representatives, may also make forward-looking statements in press releases and oral statements.
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Forward looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or revise any forward-looking statements after we file this annual report because of new information, future events and other factors. This annual report contains statements in relation to our plans, forecasts, expectations regarding future events, strategies and projections, which are forward-looking statements and involve risks and uncertainties and are therefore, not guarantees of future results.
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Accordingly, no adjustments have been made to the combined Intelig and TIM Participações results in preparing the pro forma information. Intelig and TIM Participações had no material intercompany transactions during 2009. This pro forma information has been prepared by combining the results of operations of each of Intelig and TIM Participações. In order to facilitate analysis of the evolution of our business from 2009 to 2010 we have provided certain pro forma 2009 financial information in this annual report on Form 20-F that reflects the acquisition of Intelig as if it had occurred on January 1, 2009. Because Intelig is included in all 12 months of our 2010 results but only one month of 2009 the results from 2010 period are not fully comparable to those of the 2009 period.
We have included Intelig in our results of operations since November 30, 2009. (“JVCO”) in exchange for a 5.14% participation on TIM Participações’ capital stock. (“Intelig”), from JVCO Participações Ltda. (“Holdco”), which held 100% of the ownership of the telecommunications company Intelig Telecomunicações Ltda. On December 30, 2009, TIM Participações S.A.