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
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