Brazil may invest $11b to revive Telebras
Thursday, 11 February 2010
BRASILIA, Feb 10 (Bloomberg): Brazil may invest up to 20 billion reais ($11 billion) to revive state-owned telephone company Telecomunicacoes Brasileiras SA and increase competition by offering broadband services for half the price charged by local carriers, an official said.
The government is considering a plan to have Telebras, as the company is known, manage the nation's fiber optics infrastructure and provide broadband services to consumers directly, said Cezar Alvarez, national coordinator of digital policy for President Luiz Inacio Lula da Silva.
Telecommunications costs in Latin America's largest economy are "high because of a monopoly," said Alvarez, adding that some cities are served by a single carrier. Brasilia-based Telebras may offer broadband services from 15 reais to 35 reais monthly, compared with an average cost of 70 reais charged by existing carriers, Alvarez said.
The government is considering a plan to have Telebras, as the company is known, manage the nation's fiber optics infrastructure and provide broadband services to consumers directly, said Cezar Alvarez, national coordinator of digital policy for President Luiz Inacio Lula da Silva.
Telecommunications costs in Latin America's largest economy are "high because of a monopoly," said Alvarez, adding that some cities are served by a single carrier. Brasilia-based Telebras may offer broadband services from 15 reais to 35 reais monthly, compared with an average cost of 70 reais charged by existing carriers, Alvarez said.