Brazil's Vivo Announces Broadband Expansion Plan

Brazil's leading cellphone operator Vivo Participacoes (VIV, VIVO4.BR) announced Thursday a plan to expand broadband Internet coverage to reach 85% of the population by the end of 2011.

The company will extend coverage to 2,832 municipalities from the current 600, utilizing funds included in its 2.49 billion Brazilian real ($1.37 billion) investment plan for 2010.

"The plan is ambitious but will be completed. Our objective is to rapidly expand our third generation coverage," said Roberto Lima, Vivo's chief executive, said in a press release.

Vivo is jointly owned by Spain's Telefonica (TEF, TEF.MC) and Portugal Telecom (PT, PTC.LB). Telefonica has offered to purchase PT's stake, as part of a EUR6.5 billion deal, with a view to integrating Vivo's operations with those of its local fixed-line and broadband subsidiary Telecomunicacoes de Sao Paulo (TSP, TLPP4.BR), or Telesp.

-By Alastair Stewart, Dow Jones Newswires; 5511 3544-7072; alastair.stewart@dowjones.com

Telefonica Brasil (NYSE:VIV)
Historical Stock Chart
From Apr 2024 to May 2024