Bloomberg News

Brazil Phone Carriers Fall on Regulator Fee Cut: Sao Paulo Mover

March 12, 2012

Brazilian carriers Telefonica Brasil SA (VIV), Tele Norte Leste Participacoes SA (TNLP3) and Tim Participacoes SA (TCSL4) fell on concern that the government’s plan to cut mobile-phone fees will hurt sales.

Telefonica Brasil, a unit of Madrid-based Telefonica SA, fell 0.5 percent to 54.40 reais in Sao Paulo. Oi, as Tele Norte Leste is known, dropped 1.6 percent to 18.30 reais, and Tim declined 3.3 percent to 10.41 reais. America Movil (AMXL) SAB, which also offers service in Brazil, fell 0.9 percent to 14.80 pesos in Mexico City.

Interconnection fees charged to connect calls to mobile- phone users, known as VU-M, may fall by almost 80 percent by 2018 to 10 centavos (6 cents) a minute, boosting competition, Emilia Ribeiro, a commissioner for phone regulator Anatel, said in an interview.

“Companies that get the most interconnection revenue are those that have the biggest client base or depend the most on mobile phones,” Valder Nogueira, chief analyst at Banco Santander SA in Sao Paulo, said in a phone interview. “If interconnection rates fall, that’s bad for those companies.”

To contact the reporters on this story: Carla Simoes in Brasilia Newsroom at; Crayton Harrison in Mexico City at

To contact the editor responsible for this story: Ville Heiskanen at

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