TIM unconcerned by M&A; Oi taps Alca-Lu for Sao Paulo-Fortaleza link; GVT plots FTTH rollout

17 Oct 2014

TIM Participacoes (TIM Brasil), Telecom Italia’s (TI’s) Brazilian subsidiary, can afford to skip potential mergers and acquisitions for five years without losing market share, the Italian group’s chief executive Marco Patuano has revealed to Valor Economico during a three-day trip to Brazil. Quizzed regarding the flurry of speculation linking TIM Brasil to a bid for Oi SA – and vice versa – the CEO dismissed rumours as ‘premature’, adding: ‘I find it curious to see public comments well before there is any concrete possibility of such a thing happening. TI is not seeking an offer. We started to invest in Brazil in 1998 and have already invested over EUR8 billion (USD10.2 billion) in the country.’

Domestic telecoms giant Oi SA has reportedly contracted French-US vendor Alcatel-Lucent to build an optical network linking Sao Paulo to Fortaleza. In an interview with Convergencia Digital, the president of Alcatel-Lucent do Brasil, Javier Falcon, noted that the 3,000km deployment will take three years to roll out. The network will have an initial capacity of 2.2Tbps, which can be expanded to 8Tbps.

Meanwhile, broadband provider Global Village Telecom (GVT), which is in the process of being sold to Telefonica of Spain has disclosed plans to invest BRL2 billion (USD811.4 million) in its network in 2015, of which roughly 50% will be used to fund the rollout of fibre-to-the-home (FTTH) technology. GVT CEO Amos Genish told TeleTime that, given the planned GPON fibre rollout, his company will cease deploying VDSL infrastructure in 2016. Araraquara, a city in the state of Sao Paulo is said to be the first location to boast city-wide GPON infrastructure.

Brazil, Global Village Telecom (GVT), Oi, Telecom Italia (TIM), TIM Brasil