Minister wants 50% cut in fixed line subscription charge

29 Sep 2005

Helen Costa, head of Brazil’s Ministério das Comunicaçoes, has said she wants to secure an agreement with the government to slash the basic fixed line subscription charge for low-income families in the country by 50% by the end of this year. Such an agreement will cut phone costs for around 35 million subscribers with earnings of less than BRL900 (USD400) a month, but would mean that fixed line operators – including Telemar, Telefonica and Brasil Telecom – will lose a large chunk of their revenue stream. In August, a local court accepted a plan to abolish monthly fees altogether, but the ruling was later overturned by a Brazilian federal judge.