Minister holds meeting over rate increases

5 Jul 2004

Brazil’s Minister of Communications, Eunicio Oliveira, will today meet with representatives from the country’s six incumbent wireline telecoms operators to discuss this year’s adjustments to domestic telecoms tariffs. According to Business News Americas, Mr Oliveira has welcomed the recent federal court decision to reinstate June 2003 price increases, but ruled out any retroactive tariff hikes and said any changes going forward would not be implemented immediately. Last week Brazil’s federal court, the STJ, ruled that the IGP-DI inflation index should have been used for the June 2003 yearly price adjustment. The ruling reversed a decision made last year by a Brasilia court which served to replace the IGP-DI, which was 25%, with the lower IPCA index, which stood at 14%.