The board of directors of Brazilian telecom regulator Anatel has unanimously agreed to relinquish control of Globo Comunicação e Participações SA on the Brazilian cable operator Net Serviços de Comunicação SA, and Carlo Slim’s América Móvil SAB, the biggest mobile-phone carrier in the Americas, won government permission to take control. Net Serviços was given a period ending June 13 to submit to the agency a new shareholders’ agreement.
Anatel’s decision comes after America Movil’s request to acquire control from Globo, and it is related to the new law on pay TV, which states that from September 12 broadcast stations cannot have an interest in telecommunications carriers.
Now, Embratel Group, owned by Mexico’s Telmex, has a majority stake in Net Services. Under the new reorganization, the Globo group, which held 51% of ordinary shares while Telmex group owned 48.5%, would keep 33.56% of common shares, 10% directly and 45.5 % by GB Holdings company.
In the end, Brazil’s largest broadcaster will maintain 12.13% of the total capital and 33.56% of common shares.
América Móvil has said that, with this authorization, América Móvil’s Brazilian subsidiary Embratel Participações S.A. will be in a position to exercise the option to purchase from Globo Comunicação e Participações S.A., the controlling shares of NET. Upon exercise of said option, Embratel and its affiliates will control NET.
Anatel’s decision may allow América Móvil to proceed with plans to combine its mobile-phone, land-line, Internet and video businesses in Brazil. Last October, América Móvil’s 3 companies based in Brazil – Net, Embratel and Claro – launched 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.
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