Minister hints at end to mobile sales embargo within two weeks

27 Jul 2012

Dow Jones Newswires quotes Brazil’s minister of communications Paulo Bernardo as saying that the regulator-imposed suspension of sales of new mobile phones by three of the country’s top four cellcos could be lifted within the next two weeks. Bernardo said that the ban on TIM Brasil, Oi SA and Telecom Americas (Claro) selling new plans in certain states due to complaints over poor levels of service will hopefully be resolved shortly, provided the firms involved present convincing investment plans to improve services. The minister’s announcement came in the wake of a meeting with representatives of Telecom Italia-backed TIM Brasil which has been hardest hit by the ban. Following Anatel’s ruling which was implemented last week, TIM Brasil has been barred from selling plans in 19 states across Brazil, and the fallout has had a negative impact on the group’s share price. Earlier this week Telecom Italia CEO Franco Bernabe Wednesday estimated that the group had suffered market losses of USD2.5 billion because of Brazil’s measures.

Brazil, TIM Brasil