Brazilian telecom watchdog Anatel on Wednesday lifted a suspension on sales of broadband Internet services by local firm Telecomunicacoes de Sao Paulo (TSP), or Telesp.

The local unit of Spain's Telefonica (TEF) was forced to suspend sales of its Speedy broadband product at the end of June after customer complaints about service quality.

However, Anatel directors ruled that Telesp had an acceptable plan to stabilize and improve the service.

Telesp shares closed 0.5% higher at 43.40 Brazilian reals ($23.33), rising in line with wider Brazilian market.

- By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520; alastair.stewart@dowjones.com