Consolidation is sorry for concentration of telcos, says Paul Bernardo
SAO PAULO - The bid for GVT by Telefónica will be evaluated by the government for the operation to have no negative impact to the market, said Communications Minister Paulo Bernardo.
According to the minister, there is nothing to prevent this type of operation, and the government has no official position on it. But it needs to be analyzed. "In my assessment, it is clear that a concentration [of the market]. But that will be evaluated by Cade [Administrative Council for Economic Defense], "said the minister.
He said he was told about the operation yesterday at the end of the day. The proposed U.S. $ 20 billion was officially released this morning.
In evaluating Bernardo, there is a "frenzy" in the market regarding the consolidation of telecommunications companies both by the operators themselves, as the investors. In his assessment, this process of consolidation would be an excuse for market concentration. "And concentration is not good for the consumer. The more competition the better, "said