TIM/Oi potential merger dependent on update in Brazil's fixed telephone regulatory framework, Telecom Italia says
- Folha de Sao Paulo
The potential merger of mobile operators TIM Participacoes and Oi is dependent on an update in Brazil’s fixed telephone regulatory framework, Folha de S. Paulo reported, citing Marco Patuano, president of TIM’s shareholder Telecom Italia.
Patuano was cited in the Portuguese-language item as denying that TIM is in negotiations with Oi or with Russia-based LetterOne over a potential merger of the operators, but the executive also stated that an update in the Brazilian fixed telephony regulatory framework could enable the convergence of the companies.
The current model has some “uncertainties”, Patuano said, according to the report. The fixed-line operators that won concession contracts in 2005 have been granted network and real estate assets which must be returned to the federal government once the contracts expire.
Additionally, Patuano said that TIM plans to expand its investment in Brazil in 2016, especially in its 4G network, the item noted.
Folha de Sao Paulo