Telecom Italia will not buy Brasil Telecom from Opportunity

4 May 2006

Telecom Italia (TI) has walked away from a deal to gain control of Brazilian fixed line operator Brasil Telecom (BrT) from local investor Opportunity bank, BrT said in a statement. ‘The goal of Telecom Italia was to get fixed mobile convergence, in order to compete with the two giants of Mexico’s Telmex and Spain’s Telefónica, but without BrT they can’t do this. This is very big news,’ Brendan Conroy, a telecoms analyst at tech consultancy IDC, told BNamericas. TI’s future in Brazil is now very unclear and if it fails in its quest to secure fixed-mobile convergence, it could even withdraw from the market altogether.

Brazil, Brasil Telecom (BrT), Telecom Italia (TIM)