Anatel confirms approval of Telesp’s TVA purchase

5 Nov 2007

On 31 October 2007 the Brazilian telecoms regulator Anatel ratified a July decision to approve domestic fixed line telco Telesp’s acquisition of local pay-TV operator TVA, reports BNamericas citing local Brazilian press as saying. The watchdog approved the deal earlier this year subject to both parties agreeing to a set of conditions on the transaction, most notably that shareholders of Spanish giant Telefonica, which owns Telesp, would have to relinquish powers of veto in TVA for decisions concerned with the industrial hub of Sao Paulo. Telesp holds a licence to offer fixed line services in Sao Paulo but under current legislation no operator is allowed to own a telecoms and a cable company in the same concession zone. However, Anatel is understood to have confirmed that both TVA and Telesp have agreed to the terms and conditions of its approval, and Telefónica, whose ownership is limited to 19.9%, cannot hold meetings about strategy with TVA in Sao Paulo. Anatel’s decision awaits approval by antitrust commission Cade.