November 16, 2012
Matthew Malinowski, Telma Marrotto – Bloomberg Businessweek, 11/16/2012
Brazil’s telecommunication regulator Anatel ordered Tim Participacoes SA (TIT) to suspend its Infinity Day Promotion because of concerns over its quality of service.
The Infinity Day Promotion consists of unlimited calls at a fixed price for 24 hours between telephones operated by Tim. The company said it disagrees with Anatel decision as there is no evidence of “any potential of network instability,” according to an e-mailed statement.
Tim executives “are ready for a clarification meeting with Anatel in Brasilia,” the company said in the statement. Shares fell 3.7 percent to 7.72 reais in Sao Paulo, the second-worst performer among members of the benchmark Bovespa index.
November 16, 2012
Sergio Spagnuolo – Reuters, 11/16/20123
Brazilian telecom regulator Anatel on Friday ordered TIM Participacoes, the nation’s No. 2 wireless carrier, to stop selling a flat-rate promotional plan with unlimited calls per day because of concerns about service quality.
It was the latest in a series of regulatory setbacks for the Brazilian unit of Telecom Italia. In July, Anatel banned TIM’s sales in 19 states for nearly two weeks until the company presented an investment plan to improve service.
TIM started selling its “Infinity Day” promotion on Monday, allowing customers to make unlimited local phone calls within the carrier’s network for a flat daily rate of 0.50 real ($0.24) and unlimited long-distance calls for an additional 0.50 real a day.
June 14, 2011
Brazil’s armed forces are receiving rapid deployment, satellite communications systems from a local subsidiary of Spanish company Indra.
The contract, awarded through public tender, is worth about $5 million, the company said.
Under the order, Indra is delivering light-weight, portable fly-away satellite communications systems that guarantee satellite communications from distant locations.
February 24, 2011
Profits at Vivo Participacoes (VIVO4.SA), Brazil’s largest wireless carrier, more than quadrupled in the fourth quarter, beating expectations as the company added subscribers and depreciation costs fell.
Vivo, controlled by Spain’s Telefonica (TEF.MC), said in a securities filing on Thursday its net profit for the quarter soared 325 percent to 864.2 million reais ($518 million) from 203 million reais in the last three months of 2009.
The result was well above the average estimate of 594 million reais given by six analysts asked by Reuters.
February 16, 2011
Brian Ellsworth – Reuters, 02/16/2011
Spain’s Telefonica said on Wednesday it will launch a public tender to buy shares of Brazil’s top wireless carrier Vivo held by minority shareholders in a move that could cost 763 million euros ($1.0 billion).
Spain’s largest telecommunications conglomerate on March 18 will offer the equivalent in Brazilian reais of 50.15 euros per Vivo share for 15.2 million outstanding common shares.
Telefonica last year agreed to pay 7.5 billion euros to acquire Portugal Telecom’s stake in Vivo in efforts to tap into the booming Brazilian mobile phone industry.
July 29, 2010
Jonathan Wheatley- The Financial Times, 07/29/2010
A long-awaited deal between Telefónica of Spain and Portugal Telecom opens the way for the final wave of consolidation of Brazil’s telecoms sector. It will also allow operators to put years of distractions behind them and get on with building their businesses.
After months of increasingly acrimonious negotiations, all sides seem to have emerged victorious.
Telefónica, because it can now bring its fixed and mobile services in Brazil under one roof in what Cesar Alierta, chairman, said was “a unique opportunity to create value”.
Portugal Telecom, because it sold half of Vivo for more than PT’s own entire market cap on the day of the deal and will retain a big presence in Brazil through Oi, the integrated operator in which it now has about 22 per cent.
The deal is good for Oi, too, because it will get a much needed injection of capital from PT and other shareholders, enabling it to pay down debt and expand at home and, the idea is, abroad. Oi also gets a telecoms operating company among its controlling shareholders for the first time – something that should help improve governance – as well as a 10 per cent stake in PT.
October 16, 2009
The Economist, 10/15/09
Foreigners vie for a bigger slice of Brazil’s telecoms market
The bitter fight that has broken out between Telefónica, a Spanish telecoms giant, and Vivendi, a French conglomerate, for control of GVT, a small Brazilian operator, is a measure of the excitement about a booming market that investors believe still has lots of untapped potential. Telefónica has bid $3.7 billion for the firm, topping Vivendi’s earlier offer by 14%.
Since Brazil’s telecoms monopoly was broken up and privatised in 1998, the number of landlines has more than doubled from 17m to 41m. The growth of mobile phones has been even faster. Brazil already boasts more 165m of them, just 25m short of one for every person in the land. Internet coverage is less good, but the government plans to lay 31,000km of optical fibre with the aim of bringing broadband access within reach of 162m people. The race is therefore on to create telecoms giants that can offer a range of services to Brazilians in the farthest corners of this vast country.