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Brazil asks operators to share networks
08 February 2012
Telefónica, América Móvil’s Embratel and Oi will have to share infrastructure at ‘reasonable prices’
Brazilian communications minister Paulo Bernardo has said that Tele Norte Leste’s Oi, Telefónica Brasil and América Móvil would be forced to share networks with rivals without charging “abusive” prices.
According to Bloomberg, Bernardo said that operators owning fibre networks must open up ducts so that rivals can lay their own cables, adding that mobile operators which have their own towers should allow other firms to set up antennas on the structures.
Tele Norte Leste operates as Oi in Brazil, while América Móvil owns Embratel and mobile operator Claro. Brazilian regulator Anatel told Bloomberg that Telefónica, Embratel and Oi must share networks as they have significant market shares.
Bernardo told Bloomberg that Anatel will decide on network-sharing regulations before July 2012. The rules will be effective within 90 days after they are passed.
Bernardo stated that the move will prompt “small, regional” operators to offer more services. He told Bloomberg that prices charged for network usage will be market based, adding that there will be regulations to “ensure no one is sticking a finger in another person’s eye.”
Bernardo said: “You can’t refrain from selling to another company, and if you practice abusive pricing, you can be denounced.” GTB
Further reading from Global Telecoms Business:
Brazil OKs América Móvil's cable buy 30 Jan 2012
Brazilian regulator seeks spectrum bids 24 Jan 2012
América Móvil to spend $5.4bn in Brazil 30 Dec 2011
3i acquires Brazilian broadband stake 23 Dec 2011
Brazil raises $132m in spectrum auction 08 Dec 2011