Brazil’s government looking to impose new rules on telcos

10 Apr 2012

The government of Brazil is considering new rules that would compel the country’s fixed line telecoms operators to lower their call rates and expand their networks in order to boost coverage to low-income segments of the population, the Folha de Sao Paulo writes without citing its sources. The paper says Brazil’s authorities are looking to nurture competition in the south American nation, and to that end, will bring forward contract negotiations that were initially scheduled for 2015. Further, the government is said to be keen to eliminate charges for calls between different providers in a bid to drive down end-user rates, and order telcos to ramp up their network investments and even lease out capacity to third-parties to foster competition. If implemented, the new rules would cover fixed telcos such as Telefonica Brasil (Vivo), Telemar Norte Leste (Oi) and Embratel, controlled by the Mexican billionaire Carlos Slim. The paper notes that even as the government looks to proceed down this path, the big telcos are lining up a defence and could challenge any decisions through the courts.

Brazil, Oi, Telefonica Brasil (Vivo)