By Rogerio Jelmayer
SAO PAULO--Brazilian telecom giant company Oi SA (OIBR, OIBRC,
OIBR4.BR) said Tuesday that it won't participate in next week's
public auction of 4G wireless-airwave licenses.
"Oi already possesses a diversified spectrum portfolio to meet
the growing demand for mobile data, which allows it to provide
competitive voice and data services, in addition to extensive Wi-Fi
and fixed-line networks, which ensures an extensive reach of the
company's operations in Brazil," the company said.
Brazil's telecommunications regulator, Anatel, earlier Tuesday
received proposals from companies which want to participate in the
auction of 4G wireless auctions on Sept. 30.
It received proposals by others major players in Brazil, Spain's
Telefonica SA (TEF, TEF.MC), known as Vivo; TIM Participacoes (TSU,
TIMP3.BR), which is the local unit of Telecom Italia SpA (TI,
TIT.MI); Claro, the local unit of Mexico's America Movil SAB (AMOV,
AMX, AMX.MX), along with Algar Telecom.
Anatel will unveil details of the proposals, along with the
winners of the auction, on Sept. 30.
The government plans to raise more than 8 billion Brazilian
reais ($3.33 billion) through the auction and will use the proceeds
to strengthen its books. With the economy slowing and growth in tax
revenue eroding, Brasilia in recent years has relied on
extraordinary events, such as oil-lease sales, to bolster its
accounts.
The process will cost at least BRL11.86 billion for
telecommunication companies. Of that, BRL8.26 billion represents
the price to be paid to the government by companies to get
licenses. The balance will be used to pay companies to remove
television broadcasters who are currently using the spectrum,
Anatel said.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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