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Brasil Telecom deal gets regulatory push


23.11.2008

It seems like spam comes in everyday from someone urging me to join the land grab in Brazil. Can`t vouch for that market opportunity, but we can tell you that Brazil`s telecom market is starting to get interesting. The Brazilian president just approved a change to the country`s telecom regulations that will allow Brazilian wireless firm Oi to acquire wireline carrier Brasil Telecom.

Oi announced the deal more than six months ago, and while it was then reportedly valued at $3.5 billion, current reports pin the value at $2.5 billion. The rule change specifically allows for fixed-line operators to operate in more than one region of Brazil. The country`s telecom market currently is dominated by Spain`s Telefonica and Mexico`s America Movil. It`s a market that also has seemed to hold some promise for network equipment vendors feeling the tightening of carrier capex elsewhere in the world.

 

 

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