TI may exit Brasil Telecom; Anatel gets budget hike

4 Jul 2005

Telecom Italia (TI) has said it may sell its stake in Brazilian fixed line operator Brasil Telecom, following a long running ownership dispute with other shareholders in the telco, in particular local investment bank Opportunity which has caused Brasil Telecom to lose value. TI said that it is losing money from the investment and may pull out.

Meanwhile the Brazilian Finance Ministry has told telecoms regulator Anatel that it will make BRL55 million (USD23.4 million) available for the expansion of the markets this year; the regulator has already received BRL90 million. Anatel says it will put the money towards creating a new methodology for setting interconnection rates, a sector specific index to define annual tariff hikes, a per-minute charging system, a productivity transfer factor and a requirement to introduce a low cost fixed line service.