CADE rejects Claro appeal against Vivo-TIM network sharing pact

4 Jun 2020

Brazil’s Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) has rejected Claro Brasil’s appeal against a network sharing agreement inked between its larger rivals Telefonica Brasil (Vivo) and TIM Brasil. Claro lodged its appeal in May, arguing that the watchdog’s review of the deal – which was completed in April this year – ‘did not deeply address relevant points related to the potential anti-competitive effects of the operation’. Justifying its final decision, CADE has argued that ‘generating cost savings in infrastructure implementation is a legitimate purpose from a competitive point of view’.

On 19 December 2019 TIM Brasil and Vivo unveiled a network sharing agreement that included the creation of a unique 2G network spanning 2,700 cities; the establishment of a shared 3G/4G network covering all towns with fewer than 30,000 residents; the introduction of a 3G/4G expansion programme focused on towns where the other cellco lacks a network presence; and a network consolidation scheme with the potential to cover 1,600 cities.