Brazil consider plans to resurrect Telebras, reports say

11 Aug 2009

The Brazilian government is considering a plan to restructure and reactivate state-run telecoms services provider Telebras, BNamericas quotes local press as saying. Under new proposals currently being formulated by the planning ministry, the former telecoms monopoly, which was sold to private investors in the late 1990s, could use the infrastructure of domestic oil giant Petrobras and state-run power company Furnas Centrais Eletricas (Furnas) to manage a broadband network linking Brasilia, Sao Paulo, Rio de Janeiro and Belo Horizonte, local news agency Agencia Estado reports. It is understood that recent glitches in the local broadband network of Telefonica Telesp have revived discussion on resuscitating Telebras, according to Valor Economico. The government would use the network to create its own intranet service, and the planning ministry estimates cost savings of BRL150 million (USD82 million) per annum if the project is implemented, Valor added.