RIO DE JANEIRO, Brazil-AT&T Corp. and two prominent Brazilian groups are forming a joint venture to pursue wireless telecommunications opportunities in Brazil. The Bradesco financial institution and the Organizacoes Globo communications company together will hold 60 percent of the venture. AT&T will hold 40 percent.
The partners expect to invest more than $1 billion during the next five years to build service in Brazil, a South American country with a population of nearly 200 million.
“A leading-edge communications network is needed for Brazil to fuel its gathering momentum to become a global economic, social and political powerhouse,” said Roberto Marinho, chairman and chief executive officer of Organizacoes Globo.
Brazil has about 640,000 cellular subscribers, but the systems are not digital and are government owned. The government is said to be leaning toward Code Division Multiple Access and opening its telecom sector to competition. The venture plans to bid on cellular opportunities in early 1996.
Bradesco, the largest private financial institution in Brazil, has invested more than $1 billion in technology during the last five years, AT&T said.
Organizacoes Globo is a $2 billion corporation originally founded as a daily newspaper. It now includes a TV network, a radio broadcast system, a division that produces cable TV programming, a cable TV program distribution division and a publishing company.
