Convergence competition heats up with Vivo/Telesp mobile/fixed broadband offer

20 Oct 2011

Spanish giant Telefonica’s Brazilian unit has announced the launch of its first converged fixed and mobile bundle to be offered by its fixed line and cellular divisions Telesp and Vivo. The ‘Speedy + Internet 3G Vivo’ promotion bundles Telefonica’s ‘Speedy’ fixed broadband connections with a discounted HSPA mobile broadband service from Vivo, initially available to new and existing fixed broadband users in the Sao Paulo region only. Subscribers get a 50% discount on a twelve-month mobile internet contract, choosing from four tiers of monthly data allowances, with prices starting at BRL29.95 (USD17.00) for 500MB (reduced from BRL59.90), up to BRL99.95 (reduced from BRL199.90) for 10GB a month. The promotion is initially open until the end of November.

As noted by TeleGeography’s GlobalComms Database, in April 2011 shareholders of Vivo approved a merger with Telecomunicacoes de Sao Paulo (Telesp), which became effective on 7 June 2011. Following regulatory approval from Anatel on 15 June, in August 2011 Telefonica informed the market that shares of Vivo Participacoes had been fully incorporated. Telefonica’s merger of Vivo with Telesp was ratified on 3 October 2011, and the group hopes the improved synergies will bolster its profits and help it to better provide integrated fixed, mobile, broadband internet and pay-TV services. The integration is expected to save Telefonica in the region of USD5.8 billion per annum.

CommsUpdate reported earlier this month that Telefonica’s fierce rival in the Latin American region, America Movil (AM), embarked on a new converged strategy in Brazil. Embratel, Claro and Net Servicos, all controlled by AM’s head, Mexican billionaire Carlos Slim, jointly announced plans to launch a range of combined services. Packages launched in mid-October include pay-TV (including video-on-demand), fixed and mobile broadband, as well as fixed and mobile telephony.

Brazil, Telefonica Brasil (Vivo)