Bloomberg News

Brazil Said to Demand Phone Companies Share Infrastructure

July 27, 2012

Brazil’s telecommunications regulator Anatel may determine at the end of next week that mobile-phone companies should share their infrastructure to increase network capacity, according to a government official familiar with the matter.

The announcement may be made at the same time Anatel suspends a ban on sales of voice and data service by Tim Participacoes SA (TIMP3), America Movil SAB (AMXL)’s Claro and Oi SA (OIBR4), said the person, who asked not to be named because the discussion isn’t public.

Network failures prompted the sales suspension, which started on July 23. The ban on Claro includes Sao Paulo, Brazil’s richest and most populous state, while Tim was blocked from selling services in the second- and third-biggest states, Minas Gerais and Rio de Janeiro. The end of the sales ban will hinge on the investment plans presented by companies to improve the quality of service.

Mobile-phone companies will be required to share all infrastructure in some areas and only transmission towers in the country’s biggest metropolitan areas, the person said.

Anatel didn’t immediately respond to requests for comment made by e-mail and telephone.

Tim also didn’t immediately respond to a request for comment. Claro and Oi declined to comment.

To contact the reporter on this story: Carla Simoes in Brasilia at csimoes1@bloomberg.net

To contact the editors responsible for this story: Helder Marinho at hmarinho@bloomberg.net; Nick Turner at nturner7@bloomberg.net


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