Qualcomm to sell Vesper to Embratel

12 Aug 2003

US-based Qualcomm has agreed terms with Brazilian long-distance telecoms operator Embratel to sell its Vesper unit, as Embratel forges ahead with plans to expand its local telephone services to offset the effects of competition in its traditional core market. The MCI-controlled long-distance telco will acquire Vesper without having to outlay any cash or take on additional bank debt. According to Bloomberg, Vesper and Qualcomm will enter into a ‘tower sale and leaseback agreement’ to raise funds. Embratel has seen its revenues from voice services falling for four consecutive quarters. It hopes that strengthening its position in the local telephony sector will better enable it to compete with its rivals.