Brazilian fixed line telecoms operator Transit Telecom says the service agreements it has concluded with 127 municipalities in Rio Grande do Sul has helped to reduce telephony costs by up to 65%, reports BNamericas citing a company statement. The telco has inked contracts with around a quarter of the 496 municipalities of the state of Rio Grande do Sul and says it is focusing efforts on delivering services to areas which do not have access to many telecoms service providers. The company’s sales director is quoted as saying that Transit Telecom is helping municipalities to reduce costs by using contracts for fees on DLD calls and by using its VoIP services. ‘So far, costs on fixed to cell phone, inter city and international calls have been reduced 30%, while the municipalities that use [its] VoIP system have been able to reduce expenses by up to 65%,’ he said. Transit Telecom focuses its operations in Porto Alegre’s greater metropolitan area and in the mountainous area within the state. By the end of 2008 it aims to have extended its service coverage to at least 150 municipalities.