LISBON, Portugal-Concert plc, the company formed as part of the merger of British Telecommunications plc and MCI Communications Corp., and Portugal Telecom announced Portugal Telecom will exclusively distribute Concert’s voice products in Portugal.
Francisco Murteira Nabo, chairman of Portugal Telecom, said the alliance will allow the companies to “create additional business opportunities worldwide and particularly in Brazil,” where Portugal Telecom has an alliance with Telebrasilia, the country’s primary telecommunications provider. Brazil accounts for nearly 40 percent of Latin America’s telecom market, said the companies.
In the alliance, BT and MCI will gain minor stakes in Portugal Telecom, 1 percent and 0.5 percent, respectively. Portugal Telecom is about to complete restructuring into a private company. Once that is completed, a BT executive will be asked to take a seat on the operator’s board of directors.
Portugal Telecom said it is focused on developing a global communications portfolio for multinational business customers, enhancing its domestic service offerings through knowledge transfer of best practices and leading edge technology, and expansion into new markets with new services.
BT and MCI will offer Portugal Telecom support in marketing and global networking, said the companies.
MCI said it is the second largest carrier of international telephone traffic from the United States to Latin America and the largest international private-line carrier, with a presence in 17 Latin American countries.
Portugal Telecom is valued around $7 billion and shares in the company are traded on the Lisbon and New York Stock Exchanges.
BT and MCI plan to complete their merger this fall.
