Telefonica To Switch To Vivo Brand In Brazil At End Of 1Q 2012
13 September 2011 - 6:59AM
Dow Jones News
The Brazilian unit of Spain's Telefonica SA (TEF) will switch
all of its products to the Vivo brand of its mobile phone operator
early next year, the head of the Brazilian operations said
Monday.
"There's a fixed date for the change, and that's the end of the
first quarter of 2012," Antonio Carlos Valente told reporters at a
conference.
Changes to Brazilian regulations have allowed operators to merge
their fixed-line and mobile operations, a process which Telefonica
is in the final states of completing after more than a year of
corporate restructuring. The final step is expected to take place
in October, when the mobile-phone operator will be formally
absorbed by its main local unit, Telecomunicacoes de Sao Paulo SA
(TLPP4.BR), or Telesp.
Valente said that after the lengthy corporate process, the
emphasis will now move towards providing the benefits to end users.
High on the list is the launch of a fixed wireless telephone
service later this year, Valente said, while providing few details.
The company will also target more locations and smaller cities, he
said.
One of the next big steps for Telefonica will be the approval of
a new law which would allow it to provide paid television services.
The law has been approved by Congress and is expected to be signed
into law by President Dilma Rousseff soon.
In 2006, Telefonica bought a stake in Brazilian pay television
company TVA from local media giant Grupo Abril, under an agreement
which would allow the Spanish firm to increase its ownership if
Brazilian law is changed, Valente said. The existing law prevented
foreign companies from owning more than a 50% stake in a Brazilian
pay TV firm.
Valente said he expects implementation of the law to take around
six months, but that Telefonica is already preparing for the
changes. He said there's huge potential for pay TV even in Sao
Paulo state, as currently just 71 municipalities, out of a total of
645, have issued licenses to provide pay TV services.
"There's plenty of room," he said.
-By Matthew Cowley, Dow Jones Newswires; +55 11 3544 7082;
matthew.cowley@dowjones.com
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