Brazil to Suspend Some Mobile Phone Sales by 3 Firms - Report

Date : 07/18/2012 @ 4:28PM
Source : Dow Jones News
Stock : America Movil, S.A.B. de C.V. American Depository Receipt Series L (AMX)
Quote : 17.46  0.19 (1.10%) @ 4:00PM

Brazil to Suspend Some Mobile Phone Sales by 3 Firms - Report

America Movil (NYSE:AMX)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more America Movil Charts.

SAO PAULO--Brazil's telecommunications regulator has opted to suspend sales by three mobile phone companies in some states because of the volume of customer complaints, the Folha de Sao Paulo newspaper reported on its web site on Tuesday.

The regulator, known as Anatel, will from Wednesday suspend mobile phone sales by TIM Participacoes SA (TSU, TIMP3.BR), a unit of Telecom Italia SpA (TI, TIA, TIT.MI), Oi SA (OIBR, OIBR4.BR) and Claro, a unit of Mexico's America Movil SA (AMX, AMOV, AMX.MX), according to the report.

TIM won't be allowed to sell in 15 states, Oi in six states and Claro in three states, according to the report, which didn't disclose which states would be affected.

Anatel has called a press conference for later on Tuesday afternoon "to discuss the quality of mobile phone service in Brazil." A spokesman for Anatel declined to comment on the Folha article.

The companies will only be allowed to restart sales once they present an investment plan for the next two years, with goals to resolve problems with the quality of the service they're providing to customers, according to Folha.

Together, the three account for around 70% of the Brazilian mobile phone market; Telefonica Brasil SA (VIV, VIVT4.BR) is the fourth operator, with the remaining 30% share.

Anatel has been monitoring performance over the last six months, according to the report.

Shares in the two locally-traded firms to be affected, TIM and Oi, were down 2.4% and 3.5%, respectively, while the broad Ibovespa index was up 1.1% on the day. Shares in Telefonica Brasil were up 0.6%.

New York-traded shares in America Movil were down 1.1%.

Write to Matthew Cowley at matthew.cowley@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


Latest AMX Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.