Brazilian telecom provider Telebras has informed the Securities and Exchange Commission it will sign a memorandum of understanding with Odebrecht Defesa e Tecnologia in order to create a company to provide voice and data services via underwater cables. The agreement includes the building of two submarine cables, opening up new Internet connections with the United States and Europe.
The project is part of the Brazilian government’s list of priorities as it looks to increase Internet access for the FIFA World Cup in 2014, as well as to provide cheaper IP connections than are currently available through existing international lines.
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Created in 2011, Odebrecht Defesa e Tecnologia is part of the Odebrecht Organization and is focused on offering equipment, integrated command and control systems and defense and security management services for military and civilian use. It has also assumed shareholder control of Mectron, a manufacturer of aerospace equipment.
Odebrecht Defesa e Tecnologia also holds stake in the Odebrecht – EADS Defesa e Segurança, which offers integrated solutions in the sector under the form of a joint venture; Baía de Sepetiba Consortium. That venture manages a national submarine development program and is currently constructing a shipyard and naval base complex – Itaguaí Construções Navais, which builds conventional and nuclear submarines, and Copa Gestão em Defesa S.A, which structures and manages projects in the segment.
Earlier this month, Telebras announced plans to raise $175 million through a public offering. The company said it intended to use the proceeds from the offering to fund operations as part of Brazil’s National Broadband Plan.
