SÃO PAULO – The battle between over-the-top players and telecom carriers, along with the increases in and expansion of broadband accesses, the role of 4G and telecom market consolidation were highlights at the opening of this week’s Futurecom event held in São Paulo.
Brazil’s communications minister, André Figueiredo, addressed the event, noting it’s important to discuss the impact of OTT in the telecom industry, but it’s also necessary to respect and take into account the infrastructure investment already made by telecom operators. Figueiredo suggested the government might not impose taxes on OTT providers, which is a different position compared to former ministers who have indicated that OTTs should pay taxes.
João Rezende, president of the country’s telecom regulatory agency, said the private market should come to an agreement without government interference.
Broadband
Regarding broadband Internet, Figueiredo provided coverage goals, including 300 million people connected by 2018, while increasing the average speed of services to 25 megabits per second over the next four years.
“The revitalization of [Brazilian state-owned telecommunications provider] Telebras was vital to boost broadband access for low-income people,” Figueiredo said, adding the goal is to have broadband covering 90% of the population by 2018.
Merger Oi-TIM
The possible merger of Oi and TIM was back (again) in the news over the weekend as Oi announced Russian group Letter One made a proposal with Oi to enter into exclusive negotiations with respect to possible consolidation of the Brazilian telecommunications sector involving a combination with TIM Participações S.A. Letter One is reportedly willing to make an investment of up to $4 billion in Oi, subject to the consolidation activities. TIM has denied that it’s in negotiations with Oi or Letter One.
