Brazil Telecoms: Mobile Scramble
Ownership of Brazilian telecoms is in flux, reflecting elevated foreign interest as well as expansion on the ground. Consolidation has several more acts to run.
by Vincent Bevins
In late July, Telefónica finally wrapped up a lengthy and expensive quest to buy Portugal Telecom(PT) out of a mobile venture in Brazil, and will now be able to integrate it with fixed-line services. Not willing to leave Latin Americas biggest market behind, PT used part of the proceeds to buy a share in Oi, Brazils only major national telecoms provider.
Not to be outdone, Carlos Slims empire shortly afterwards sent a clear signal of its own major consolidation plans for Brazil. And now, there is speculation that UK-based Vodafone may be eyeing the local operations of Telecom Italia, which controls the other major mobile service in Brazil.
The scramble reflects two major trends. The first is familiar enough to almost be cliché: emerging markets are seen to be powering world economic growth and offer much more...
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