T. Italia eyes regionwide network in S. America
forbes.com
Reuters, 09.12.02, 3:29 PM ET
VENICE, Sept 12 (Reuters) - Telecom Italia's <TIT.MI> chairman said on Thursday that its wireless arm plans to create the first regionwide mobile phone service in South America with service starting in Brazil in October.
Brazil's government approved the day before a deal that will allow Telecom Italia to cut its indirect stake in a fixed line Brazilian phone company, clearing the way for Telecom Italia's TIM <TIM.MI> to start offering mobile phone services.
"We negotiated very seriously and in the end we reached a deal," Telecom Italia chairman Marco Tronchetti Provera said on the sidelines of a ceremony in Venice.
"The official decree will be published today and the service will start in October. We have the chance to create the first pan-South American network," he added.
TIM is already present in Argentina, Bolivia, Chile, Peru and Venezuela.
First, TIM will have to show Brazil's regulatory National Telecommunications Agency (Anatel) that is has indeed cut its indirect stake in Brasil Telecom SA <BRTO4.SA> (nyse: BTM - news - people) and handed control of the phone company over to shareholders.
Under rules set out when Brazil privatised its telephone system in 1998, a phone company can expand on a regional concession into new regions or offer new services only if it meets end-2003 mandatory service targets ahead of schedule -- but Brasil Telecom was not set to do that.
Copyright 2002, Reuters News Service |
