Brazil Allows Mobile Companies to Resume Selling Services

Date : 08/02/2012 @ 5:33PM
Source : Dow Jones News
Stock : America Movil, S.A.B. de C.V. American Depository Receipt Series L (AMX)
Quote : 18.63  0.16 (0.87%) @ 1:53PM

Brazil Allows Mobile Companies to Resume Selling Services

America Movil (NYSE:AMX)
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BRASILIA--Brazilian telecommunications regulator Anatel on Thursday lifted the ban on mobile-phone sales by three operators that was introduced July 23.

TIM Participacoes SA (TSU, TIMP3.BR), Oi SA (OIBR, OIBR4.BR) and Claro, the local unit of Mexico's America Movil SA (AMX, AMX.MX) will be allowed to start selling again Friday, Anatel head Joao Batista de Rezende told reporters in Brasilia.

The three companies were banned from selling in some states because of poor quality of service and a high level of complaints. Anatel said the bans were introduced because performance indicators were below par. It gave the three firms 30 days to present investment plans aimed at resolving service problems.

TIM was banned from selling in 19 states, including Rio de Janeiro, while Oi was banned from selling in five states, and Claro was banned from selling in three states--including the populous and wealthy state of Sao Paulo. Telefonica Brasil SA (VIV, VIVT4.BR), the country's largest operator, wasn't banned from selling.

According to reports, the companies presented investment plans totaling 20 billion Brazilian reais ($9.8 billion) and have committed to addressing complaints.

Some of the operators have said that rather than spending more money outright, they will be refocusing some of their existing investment budgets to deal with the problems highlighted by Anatel.

--Paulo Winterstein and Matthew Cowley in Sao Paulo contributed to this report.

Write to Gerald Jeffris at gerald.jeffris@dowjones.com

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


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