RIO DE JANEIRO – TIM Brasil, which belongs to Telecom Italia, and Brazilian state-owned telecommunications provider Telebras have signed a memorandum of understanding to collaborate on providing fiber optic capabilities to portions of the country in order to improve Internet broadband services and comply with the country’s national broadband plan. The regions include the interior of the North and Northeast of Brazil, and will also bring the necessary infrastructure to service the World Cup 2014 in Manaus (Amazonas).

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During a press conference held at this week’s Futurecom event (check all pieces), TIM Chairman Manoel Horácio noted the importance of the MOU to improve infrastructure for 3G and LTE networks.

Under the agreement, TIM will yield 2,200 kilometers of optical fibers in the stretch between municipalities of Tucuruí (AP), Macapa (AP) and Manaus (AM) to Telebras. In return, the state will assign pairs of fibers connecting areas inside the North and Northeast of the country.

Another important initiative is the ongoing negotiation for hiring TIM to provide end-to-end transportation of Telebras’ network. The goal is to optimize and improve the quality of 3G mobile service.

Telebras and TIM have have been in talks since last year, which also resulted in the signing last March of an agreement for sharing infrastructure, including towers and sites. With this partnership, Telebras further expands its fiber optic network, becoming one of the largest in Brazil.

Telebras President Caio Bonilha explained the partnership with TIM will better position the state company in providing access to the North and Northeast regions of the country, helping to reduce regional inequalities.

The executives noted there is no money exchange between companies, but taxes are not excluded.