The brazilian National Telecommunications Agency (Anatel) has approved the purchase of Nextel for the Course. The decision was made unanimously by the Board of directors, and has established a term of up to six months in order to tap the potential of the business.
- Of course, buying Nextel for$ 3.47 billion
- TIM and Vivo, point to a risk to competition, the merger of Claro and Nextel
According to a judgment published in the Official Gazette of the Union on Monday (30), the Centre is also expected to adapt their licenses to the spectrum in as few as two months from the date of completion of the transaction.
The current law allows a single operator may have up to 35% of the spectrum available for 71.4 MHz) at radio frequencies below 1 gigahertz (GHz), which may be extended for up to 40% through a grant from the fcc. This is the overlay only happens on the Sao Paulo (DDDs 11) and (12), in Rio de Janeiro (AREA 21), Rio Grande do Sul, DDD 51), the Federal District (AREA 61), and Tocantins, the AREA (p. 63), Para (AREA 91), the Amazon (AREA 92), and the state of Maranhão (AREA 98).
In addition, the companies shall, within a period of 18 months, to eliminate the overlapping of the grant of the provision of the Personal Mobile Service (SMP) and the Service Switched Telephone network (PSTN). You will also be required to return the software to the Selection of a Provider of long-distance calls. The Light is the owner of the Sound code 21, whilst the Centre has a 99.
In the opinion of the bureau of Competition of the merger of the Centre “does not have the potential for a significant increase in the average revenue per user.” The rapporteur is of the Emmanoel Campelo also said that this acquisition is pro-competitive, by leveraging the ability of the Course to contest for the position of a provider, a leader [Live], allowing for the adoption of a wider range of marketing strategies”.
Cade had approved the purchase
The deal has already been approved without restrictions by the Administrative Council for Economic Defense (Cade). The authority had noted that the Centre is an operator of “highly regional”, with a lower share of the market compared to your competitors. In July 2019, the Centre had a market share of the national 1.53%, while the Light had 24,71%, which is the second-largest company by number of customers.
The market is still up with the big four mobile phone operators, and the Entrepreneurs have already indicated that the reduction in the number of major players to three would have resulted in a clear awareness of the increased possibility of coordinated actions among them, such as the formation of a “cartel” among the companies involved.
This is the case for portugal telecom, which has suffered from speculation about a sale of its mobile arm. The media has reported that TIM, Vivo, AT&T, and all the way to China Mobile, would be interested in it, but there isn’t anything on the ground.
Information: Mobile for the Time