Deal closed for R$ 16.5 billion will have conditions and depends on antitrust watchdog Cade
01/02/2022
The board of directors of the Brazilian Telecommunications Regulatory Agency (Anatel) approved unanimously on Monday the purchase of Oi’s mobile services operation by the consortium formed by telecoms Vivo, TIM and Claro. The agency established conditions for the transaction, such as compliance with the General Plan of Universalization Goals (PGMU) and ending, in 18 months, with overlapping frequencies. The asset was sold in a judicial auction for R$16.5 billion.
Oi stated, in a material fact notice, that the sale of these assets represents an important step in the amendment to the company’s judicial recovery plan.
According to the company, the effective conclusion of the transaction is subject to the fulfillment of certain conditions established by Anatel and still needs to be approved by antitrust regulator CADE.
/i.s3.glbimg.com/v1/AUTH_37554604729d4b2f9f3eb9ad8a691345/internal_photos/bs/2022/Z/g/YdZPqWSjyF4YB4HAdJ3w/01emp-100-oi-b5-img01.jpg)
Emmanoel Campelo — Foto: Divulgação/Anatel
The trial of the case had started last Friday with the reading of the opinion of rappourter Emmanoel Campelo, but the voting did not start because colleague Vicente Aquino requested more time to study the matter.
On Monday, the request for prior consent of the transaction was approved with the vote of Mr. Aquino, who presented only some wording adjustments and additions to the conditions and determinations (competition remedies) proposed by Mr. Campelo. The adjustments were accepted by the rapporteur himself and the directors Carlos Baigorri and Moisés Moreira.
One of the changes is related to the guarantee of compliance with the General Plan for Universalization Goals (PGMU IV, 2018), which is now assumed by the three purchasing operators.
Mr. Aquino said that, with the suggested wording adjustment, it will be possible to guarantee the offer of “internet connection with 4G technology, or higher, via industrial exploitation and wireless access arrangement” in the locations covered by the plan until the end of the fixed telephony concession (STFC) term.
The problem, according to him, is in the reference to the obligations of OI S/A, which is the concessionaire of (STFC) and responsible for the PGMU IV. With the concern of protecting small providers, Mr. Aquino recommended that the maintenance of the wholesale product offers, through a national roaming agreement, be submitted by the three Oi competitors to Anatel´s Superintendence of Competition. The idea came from the technical area, was presented by Mr. Campelo and, on Monday, it was approved after undergoing adjustments suggested by a colleague on the board.
“I consider this determination commendable. National roaming is extremely important for regional providers and for new entrants who do not yet have their own networks across the country,” said Mr. Aquino. According to him, this allows customers of small providers, who have just entered the mobile telephony market, to make calls when leaving their State of origin.
Mr. Aquino also defended “isonomic and non-discriminatory” treatment should be applied to the modality of mobile virtual network operator (MVNO) – which is the offer of mobile telephony by those who do not own the network, but “rent” the infrastructure of a large operator.
On Friday, Campelo demanded that the three telecom companies present a communication plan aimed at Oi’s customer base that will be absorbed after the transaction. According to the counselor, the communication plan for users will ensure the broad right to portability and prohibits automatic migration and imposition of contractual burden but does not rule out the possibility of additional measures by Anatel, and will be monitored by the agency’s Superintendence of Consumer Monitoring, with support from the National Consumer Defense System, of the Ministry of Justice.
The Neo Association, which brings together internet and pay-TV providers, such as Brisanet, Algar, and Sercomtel, reported that “it was already waiting for approval and that the biggest battle will be at CADE.”
According to Neo, although any interested party in the process can still file an appeal for annulment of the decision at the agency, the association will now focus on actions for CADE to adopt stricter measures to ensure competition in the sector. The smaller providers believe they will be harmed by Oi Móvel’ sale.
Ademir Pereira, a partner at Del Chiaro Law Firm and Neo’s representative at CADE, considered the conditions “insufficient”. Neo defends the alienation of part of the operator’s assets, which could be done with regional spectrum slicing.
The president of Copel/Sercomtel, Wendel Oliveira, regrets Anatel’s decision. “I see it with concern, there is a problem with competitiveness, which will certainly be affected,” he said.
The president of the Federation of Call Centers, Telecommunications and IT Network Infrastructure Installation and Maintenance (Feninfra), Vivien Suruagy, said that the entity was satisfied with the approval of the transaction and that this is important to preserve Oi and maintain jobs.
Source: Valor International