América Móvil’s 3 companies based in Brazil – Net, Embratel and Claro – launched today (October 5) a range of integrated services that combines high-definition of pay-television, mobile and fixed-telephony and fixed and mobile broadband Internet. Although it seems to be an upgrade to the existing package of Net and Embratel — they have a partnership to offer pay-TV, fixed-line and fixed broadband Internet –today’s announcement may increase competition between the two biggest foreign telecom groups in Brazil: Carlos Slim’s América Móvil and the Spanish Telefónica Group.
In Brazil, Telefónica owns fixed telephony and broadband services. It has bought mobile carrier Vivo and has recently announced that it took control of pay-TV TVA. However, its current offerings do not include Vivo services.
During the launch, the presidents of three companies explained that they are making efforts to integrate their networks, so carriers can optimize their fiber optical infrastructure. “We are working to have three companies using the same platform and we are expanding our fiber optical network,” said Claro’s president, Carlos Zentero. “Networks are currently independents, but are being redesigned focused on convergent services,” explained José Formoso, Embratel’s president.
The companies also announced that they will have a center devoted exclusively to customer service to attend to this offer’s customers. In Brazil, complains about customer service are on the top in several consumer protection institutes. Net, Embratel and Claro want to avoid that. Employees, executives said, will not be outsourced. But they did not disclose how many people they are hiring.
Investments weren’t disclosed either. América Móvil is investing US $5.46 billion in Brazil over 2011 and 2012.
Packages, called “combo”, grantee executives, may represent an economy of 30% to customers, compared to what they would spend if they buy services separately. Besides, customers can also use Net Wi-Fi hot-spots, which is already available in São Paulo and is expanding to Rio de Janeiro.
From the companies’ point of view, besides networking optimization, they are also looking forward economies of scale. “Our companies have complementary services, so it makes sense to combine them,” said Net’s president, José Antonio Félix.
Asked about when controlling shareholder America Movil SAB will take control of Net Servicos de Comunicacao SA, Félix said that there is no time set yet. “We are happy with the approval of PLC 116 and we are making progress,” pointed out Net’s president. Approved by president Dilma Rousseff last month, PLC 116 removed restrictions on foreign ownership in Brazilian cable television companies.
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