Regulator rubber stamps Vivo restructuring

13 Jan 2006

Brazil’s telcoms regulator Anatel has given the go-ahead for the country’s largest wireless operator Vivo to restructure its five operating units into a single business, writes BNamericas. Under the plan, Vivo will merge the five units – Tele Centro Oeste Celular Participaes, Tele Sudeste Celular Participaes, Tele Leste Celular Participaes and Celular CRT Participaes – into Telesp Celular Participaes, which will be renamed Vivo Participaes. The restructuring should cut the entity’s consolidated net debt by 8% and boost EBITDA by almost 48%. With over 28 million subscribers, Vivo controls around 35.4% of the Brazilian mobile market.