Telcomp calls for inquiry into Telemar's Way Brasil acquisition

25 Oct 2006

Telcomp, Brazil’s competitive telecommunications association, is calling on the telecoms regulator Anatel to hold an inquiry into Telemar’s proposed takeover of cable TV firm Way Brasil, writes BNamericas citing local newspaper reports. The association will ask the watchdog to discover whether the takeover is an abuse of Telemar’s dominant position and also investigate clauses in the fixed line operator’s contract which it claims prevent Telemar from offering pay-TV services in areas where another CATV provider is already present.

Telemar submitted a winning bid of BRL132 million (USD60 million) in July this year to acquire Way Brasil from shareholders that include Minas Gerais electricity firm Cemig. The telco is awaiting regulatory approval for the purchase, but says Telcomp’s claims are unfair and that it is acting in support of rival pay-TV provider Net Serviços. Speaking of which . . .

Brazil, Oi