GVT earmarks USD1.3bn investment in 2013

4 Jan 2013

Brazilian alternative operator Global Village Telecom (GVT), currently owned by Vivendi of France, plans to invest USD1.3 billion it the coming year, NexTV Latam Daily reports. The altnet will use the monies to ramp up the deployment of its broadband, telephony and pay-TV services in 14 cities in Brazil, with a specific focus on northeast and southeast areas, including the city of Sao Paulo. GVT has long harboured ambitions to enter the Sao Paulo market but has faced obstacles in getting all the necessary licences to construct its networks there. However, its vice president of marketing, Marco Lopes, is now quoted as saying that ‘the process is running fluidly and we hope we do not have any [more] problem[s]’. GVT’s 2013 capital expenditure budget is similar to the amount it invested in FY2012 to expand its footprint to a further 19 cities – taking its year-end total to 137 municipalities.

The situation concerning the long term ownership of GVT is less certain though, after its French parent confirmed its intentions to sell the unit last year. TeleGeography’s GlobalComms Database writes that in late-November a number of operators, such as DirectTV, Liberty Global Inc, Brazilian owned Oi SA and Mexico-based America Movil (AM), were reportedly eyeing a possible takeover of the firm, after the French group announced it was offloading the asset to help refocus its business and reduce its debt pile. Vivendi is hoping to raise USD8.9 billion from the sale of GVT and expects to receive offers over the course of Q1 2013.

Brazil, Global Village Telecom (GVT)