YOU ARE AT:AmericasLatAm: Mexico fines Telmex for monopolistic practices; Oi CEO resigns

LatAm: Mexico fines Telmex for monopolistic practices; Oi CEO resigns

Mexico’s telecommunications regulator, IFT, has imposed a $3.69 million fine on fixed-line operator Telmex for monopolistic practices in long-distance services. IFT said Telmex committed a serious infraction by ignoring competitor Axtel’s requests to interconnect with its network. The carrier also did not provide information about its infrastructure when asked.

Oi resignation — Zeinal Abedin Mahomed Bava resigned his position as CEO of Brazilian carrier Oi. Bayard De Paoli Gontijo, Oi’s CFO and investor relations officer, will serve as acting CEO until the company’s board appoints a replacement.

Oi’s financial situation has deteriorated since its ongoing merger with Portugal Telecom was hurt by Rioforte’s default of almost €900 million ($1.15 billion). Oi has struggled to equalize a debt of $19.34 billion, which is necessary for the carrier to keep its market position. Also, Oi did not participate in Brazil’s recent 700 MHz spectrum auction.

In addition, Bloomberg reports that billionaire Patrick Drahi is looking to acquire Portugal Telecom. If that happens, it would have a direct impact on Oi, including a breakup of the merger.

TIM downplays rumors of Oi purchase — Telecom Italia’s Brazilian unit TIM released a statement following several media rumors saying that the telecom operator had hired Bradesco investment bank to analyze an offer for its rival Oi. TIM said the evaluation of strategic business development alternatives is common among its routine activities and for that purpose it engages the support of several financial consulting firms, including Bradesco.

TIM noted that such consulting support has not included any mandate to evaluate an acquisition offer for Oi and has been limited to providing TIM with market information and its potential implications given the several possible strategic alternatives.

4G in Peru — Nextel Peru, which is owned by the Chilean operator Entel, has started offering LTE services in the San Borja district of capital Lima. The telecom regulator OsipTel noted that the carrier has met its coverage obligation to provide LTE services to at least one district of Lima after the first year of being awarded spectrum licenses.

Mobile broadband prices — Despite several past studies on the subject with contradictory findings, a carrier association released a study showing that Brazil’s mobile prices are not high relative to other countries. According to the survey, the price of mobile broadband in Brazil is among “the lowest in the world” compared to a group of 18 countries that have the highest density of mobile users in relation to population.

broadband price

Prepaid mobile broadband service in Brazil costs $5.30 for at least 300 megabytes, the second lowest price among the countries studied, above only India. The association noted that the amount would be even lower if Brazil’s 43% tax on services was removed, resulting in a price of $3.70.

As for postpaid mobile broadband, a Brazilian package with at least 500 MB costs around $11.60 with taxes.

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ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, [email protected] Roberta Prescott is responsible for Latin America reporting news and analysis, interviewing key stakeholders. Roberta has worked as an IT and telecommunication journalist since March 2005, when she started as a reporter with InformationWeek Brasil magazine and its website IT Web. In July 2006, Prescott was promoted to be the editor-in-chief, and, beyond the magazine and website, was in charge for all ICT products, such as IT events and CIO awards. In mid-2010, she was promoted to the position of executive editor, with responsibility for all the editorial products and content of IT Mídia. Prescott has worked as a journalist since 1998 and has three journalism prizes. In 2009, she won, along with InformationWeek Brasil team, the press prize 11th Prêmio Imprensa Embratel. In 2008, she won the 7th Unisys Journalism Prize and in 2006 was the editor-in-chief when InformationWeek Brasil won the 20th media award Prêmio Veículos de Comunicação. She graduated in Journalism by the Pontifícia Universidade Católica de Campinas, has done specialization in journalism at the Universidad de Navarra (Spain, 2003) and Master in Journalism at IICS – Universidad de Navarra (Brazil, 2010) and MBA – Executive Education at the Getulio Vargas Foundation.