The Brazilian government has approved a tax reduction for locally produced smartphones. According to the decree published in the Official Gazette, the PIS/COFINS tax levied on smartphones priced up to $763 (R$1,500) will be abolished. The exemption also includes digital routers.
The measure has been expected since the government announced a series of tax breaks last September. The aim of the measure is to reduce smartphone prices. Nokia, for example, said that the tax cut will apply to six Lumia series devices and the Asha 302.
Investments:TIM announced that it is investing about $175 million (R$345 million) in its Rio de Janeiro network during 2013. The telecom operator said that the funds will be spent on the installation of new sites (antennas) and continuing the infrastructure modernization process aimed at increasing voice and data traffic capacity. In total, about 130 2G antennas and 180 3G sites will be deployed by the end of 2013.
Telefónica: Telefónica’s Latin American operations made headlines last week. Several reports said the company was considering spinning off part of its Colombian business as the company looks to reduce its debt and avoid selling stakes in its other more lucrative Latin American operations.
At the same time, another report said that Telefónica may be willing to end its six-year investment in Telecom Italia since the two carriers have failed to generate synergies. The Spanish telco could be ready to sell its indirect 10.5% stake in Telecom Italia.
In Brazil, Telefónica Vivo showed progress in its machine-to-machine vertical. The company said that it has chosen Sascar, a vehicle monitoring and transport operations management company, as a partner in developing solutions for light vehicle fleet management. The companies are eyeing a potential market of 5 million vehicles. Under the terms of the agreement, both partners will be able to provide solutions using the Vivo brand.
As for its global operations, Telefónica chose TOA Technologies as its worldwide partner for mobile field service management solutions. The telecom operator will deploy will deploy TOA’s cloud-based solution to provide a single view of worldwide field operations, standardizing business processes and enhancing customer experience.
Merger: América Móvil’s Brazilian units, Claro, Embratel and Net, have begun the integration process. The companies announced on April 12 that they are evaluating a possible reorganization to consolidate their corporate structure and activities as well as the activities of some of their subsidiaries in Brazil.
Twitter: Jack Dorsey, the creator of Twitter and founder and CEO of the mobile payment company Square, visited Brazil for the first time last week. Twitter opened an office in the country earlier this year. “Amazing events will be held here,” Dorsey told students and members of the press at an event held in São Paulo.
“Brazil has been one of our first and largest markets. We are growing our team. It’s an important country, and it is a social country,” he said. When asked if Twitter has any specific plans regarding the upcoming major events of the FIFA World Cup, the Confederations Cup and the Olympic Games, Dorsey only said that he wanted to see how Twitter could be more relevant for these events.
Other Latin American market news:
- After selling its Peruvian Nextel unit, NII Holdings, through its wholly owned subsidiary NII International Telecom S.C.A., announced the sale of an additional $150 million in its 11.375% senior notes due 2019.
- Claro Brazil launched a video-on-demand service called Clarovideo. The new service was first announced at last year’s Futurecom event.
- IPTV subscriber lines in Latin America are expected to grow from 580,000 in 2012 to more than 4.4 million in 2017 when IPTV service revenue will surpass $1 billion, according to Pyramid Research’s latest fixed communications forecast.
- Analysys Mason reported that emerging markets and mobile data will drive global telecom revenue up to $1.7 trillion by 2017, which represents around one-third of total revenue. The consulting firm said Brazil accounts for $61 billion.
Be sure not to miss what’s happening in Latin America’s wireless markets. Check out RCR Wireless News wrap ups.
