Ministry hopes to reach agreement with telcos on price hike

29 Jul 2004

Eunicio Oliveira, Brazil’s communications minister, says he hopes to strike a deal with the country’s six fixed line incumbents – Brasil Telecom, CTBC, Embratel, Telefonica, Telemar and Sercomtel – to keep an extraordinary price hike below the 8.7% figure already agreed. The increase, which is to be introduced in two phases in September and November, will make adjustments to monthly line rental, public telephony cards and pulses – the three items deemed to have the largest impact on consumers. Mr Oliveira said that ‘the adjustment will not be above the index for the negotiation unless it is better for the consumer so the maximum index of 8.7% could end up at 8.2%, or 8.3%’.