CADE Rejected Appeal Against Telecom Infrastructure Sharing Deal

Brazilian antitrust regulator CADE has rejected an appeal against an infrastructure sharing deal signed by two major telecoms in the country, Telefonica Brasil and TIM Participações, reported Reuters. 

Their rival, Claro, a subsidiary of Mexico’s America Movil, had argued the infrastructure sharing agreement hurt competition, but CADE decided to keep its approval to the deal. 

Telefonica Brasil, the Brazilian subsidiary of Spain’s Telefonica, operates Brazil’s largest wireless carrier under the brand Vivo. TIM, which is controlled by Telecom Italia SpA, is currently disputing the second spot with rival Claro. 

In December, both TIM and Telefonica Brasil signed two infrastructure sharing agreements involving 2G, 3G, and 4G networks, which would allow them to enter more than 400 new cities each in the first year only. 

According to CADE, the reduction of costs for both companies through the sharing agreements “do not harm competition nor dampen the rival’s impetus to gain room in a highly disputed market”.

Full Content: Financial Times

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