--Brazil regulator confirms suspension of sales by three
operators due to poor service
--TIM, Oi and Claro won't be able to sell phones in some states,
regulator says
--Sales can resume once Anatel accepts the operator's investment
plans
--Mobile phone market growth slowed again in June, regulator
says
By Matthew Cowley
SAO PAULO--Brazil's telecommunications regulator Anatel has
suspended sales by three mobile phone companies in some states
because of the volume of customer complaints.
"The measure was taken as a result of the growth, witnessed by
Anatel since last year, of the number of complaints registered at
Anatel," the regulator said in a statement.
The suspension will start on Monday, and will affect 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).
TIM won't be allowed to sell in 19 states, Oi in five states and
Claro in three states, Anatel said. Significantly, Claro won't be
allowed to sell phones in Brazil's wealthiest and most populous
state, Sao Paulo, while TIM won't be allowed to sell lines in Rio
de Janeiro state.
TIM, Oi and Claro all declined comment, saying they were
preparing official responses to the announcements.
The companies now have 30 days to present an investment plan to
resolve problems with the quality of the service they're providing
to customers, Anatel said. Once that plan is accepted by Anatel,
the firms can restart sales.
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. Telefonica also must
present an investment plan, Anatel said.
Shares in two of the locally traded firms to be affected, TIM
and Oi, were down 2.8% and 4.5%, respectively, while the broad
Ibovespa index was up 1.1% on the day. Shares in Telefonica Brasil
were up 0.2%.
New York-traded shares in America Movil were down 1%.
The regulator on Wednesday also released data showing that the
growth of the mobile market in Brazil slowed again in June. Total
mobile phone users in Brazil rose to 256.13 in June, up 0.46% from
May, Anatel said. A total of 1.2 million new subscribers were
signed up in June, down from the nearly 2 million new subscriptions
seen in May.
Telefonica is the largest operator overall and saw its market
share steady in the period, at 29.6%. TIM was second with 26.9%;
Claro ranked third with a 24.6% share; and Oi SA (OIBR) remained in
fourth place with 18.6%.
Write to Matthew Cowley at matthew.cowley@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires