Brazil telecom competition plan meets expectations
Reuters, Monday, December 08, 1997 at 17:07
SAO PAULO, Dec 8 (Reuters) - Draft rules for competition in Brazil's telecoms sector after the privatization of Telebras
(SAO:TEL_.P) have raised little concern, though questions remain about plans for the actual sale of the federal telecommunications holding company, analysts said Monday.
"The plan met expectations. There were no surprises," said analyst Roberto Vierano of Fonte Cindam, after the release last week of the draft General Concessions Plan by the sector's newly formed watchdog, the National Telecommunications Agency (Anatel).
Still, broader questions linger about the privatization model for Telebras and the impact of its breakup and sale on shareholders, analysts said.
Investors want to know more about the sale's terms and rules, and would like the government spell out how the privatization would affect minority shareholders, analysts said.
Government officials said details about the privatization will come with bid specifications due to be released by January.
The Brazilian government aims to sell Telebras by mid-1998, though some analysts have expressed doubts it could meet that deadline.
The concession plan, which outlines how telephone operating licenses are to be issued, was "just one more stage in the
privatization process," Sidney Chameh of Fator Securities said.
The plan said three regional land-line units of Telebras and its long-distance unit, Embratel, would compete with "mirror" rivals immediately after privatization. The plan sees full competition after Dec. 31, 2001.
"The rules in the plan are positive for Telebras, but it should be already considered in share prices," Vierano said.
He said questions about the plan -- such as over requirements for competitors to meet demand for services -- were minor.
james.craig@reuters.com))
Copyright 1997, Reuters News Service |
