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Anatel rubber stamps Telefonica/Vivo merger

29 May 2013

Brazil’s national telecoms regulator, Agencia Nacional de Telecomunicacoes (Anatel), has formally approved the merger of ten Telefonica-owned companies, including Vivo, Folha de Sao Paulo reports. The merger is however, conditional on the company reducing the amount it charges for its basic fixed telephony services in Sao Paulo, with Anatel’s Marcelo Bechara on record as saying that based on its calculations, the reduction must be between 16% and 25% (dependent upon the actual financial gains made by the company as a result of the merger). Further, Mr Bechara went on to say that the planned reduction in fixed telephony charges ‘should occur in the next five months’. Finally, Anatel says that the merger will not need to be reviewed and assessed by Brazil’s antitrust regulator, Conselho Administrativo de Defesa Economica (CADE), as it will result in the setting up of a entirely new company. Upon completion the Spanish owned group will have two divisions: one which will be responsible for all its telecommunications activities and one which will handle all other business areas.

Brazil, Telefonica Brasil (Vivo)

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