Oi SA sets BRL1.14bn CAPEX target for northeast region in 2012

18 Jul 2012

Brazilian telecoms group Oi SA plans to invest BRL1.14 billion (USD570 million) in the northeast region of the country by the end of this year, up 16% compared with the operator’s spend in the region in fiscal 2011, BNAmericas reports. The carrier, which was formed through the restructuring of Telemar Participacoes’ former operating divisions Brasil Telecom, Tele Norte Leste Participacoes, Coari Participacoes and Telemar Norte Leste, says that BRL99 million of the total CAPEX will be ploughed into its fixed broadband services. By May 2012 Oi SA had already spent BRL367 million of the full-year total in improving its fixed telephony, broadband and mobile services in the region, which covers the states of Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui and Maranhao.

Under a business plan announced in fiscal 2011, Oi SA forecasts it will spend BRL24 billion in Brazil until 2015, including BRL6 billion this year, with a primary focus on fibre-to-the-home (FTTH), Wi-Fi, and 3G/4G mobile. Indeed, over half of its long-term CAPEX is earmarked for the expansion of the telco’s fixed broadband infrastructure, including increasing capacity and connection speeds, improving coverage, enhancing its transmission network and introducing new services. Further, Oi SA is also looking to roll out a 4G Long Term Evolution (LTE) network as per the terms of the government’s 2.5GHz spectrum auction, and has promised to reach FIFA’s six football Confederations Cup host-cities by 30 April 2013, FIFA’s World Cup host and sub-host cities by 31 December 2013, state capitals and cities with over 500,000 inhabitants by 31 May 2014 and municipalities with over 100,000 by 31 December 2016.

Brazil, Oi