Friday, March 13, 2020

TIM will take most of Oi in the purchase in partnership with Vivo

The division of Oi's mobile network between TIM and Telefonica will not be done in equal slices. For the transaction to stand, most of Oi's assets will stay with TIM, according to prior understanding between the companies. The unequal division will be necessary to prevent Telefónica (owner of the Vivo brand), which is already the market leader, be even further away from competitors and end up being prevented by the Administrative Council of Economic Defense (Cade) from effecting the business. The duo has not yet closed exactly how much each will take in this division. In the market, it is speculated that TIM will have around 60% to 70% of the business. Highway. The definition will take into account the amount that each tele has frequency – which is a kind of "highway in the air", through which the internet signals travel. The more frequency each operator holds, the greater its coverage capacity and the higher the quality of service. But there are limits imposed by the National Telecommunications Agency (Anatel) on the amount of "highways" that each tele can have in each region of Brazil. TIM and Telefonica are sharing this data to come to a conclusion of what their ideal fractions would be. Customers. The carriers' customer portfolio will also be taken into account. Telefónica has a 33% share in the Brazilian mobile internet and telephony market, followed by TIM (24%) and Claro (24%), in addition to Oi,(16.2%). To date, TIM and Telefonica have made only a manifestation of interest in Oi's mobile network, without binding offer. Sought, the companies did not speak on the subject.
O Estado de S.Paulo - 12/03/2020 News Item translated automatically
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