Brazilian regulator gives conditional approval to Oi Móvel sale

Brazilian regulator gives conditional approval to Oi Móvel sale

The General Superintendence (SG) of the Administrative Council for Economic Defense (Cade) recommended the approval, with restrictions, of the sale of Oi Movel to TIM, Claro, and Vivo.

"The technical area of ​​the antitrust agency recommended the approval of the sale but established some conditions to mitigate possible risks, said local media reports.

According to the reports, the transaction could receive regulatory clearance if the companies adopt some restrictions to mitigate the competition effects from the decrease in the number of mobile operators on the market. The case will now be evaluated by the Court of Cade, responsible for the final decision.

The technical area report recognizes that the purchase will cause market concentration. In the document, the agency clarifies that Claro, TIM, and Vivo “now hold 98.35% of the national market for mobile voice and data services nationally” and that they will have “practically all (100%) of the ERBs (mobile telephony antennas) both nationally and by area code”.

SG says it has negotiated an Agreement on Control of Concentrations (Acordo em Controle de Concentracoes, ACC) with the acquisitive parties. The decision has now been passed to the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) for review.

According to the opinion of SG/Cade, the operation entails a reduction from four to three in the number of players operating in the wholesale mobile network access and mobile voice and data services markets, with the first segment being an essential element for the second offer.

In addition to the concentration of the market and antennas, Cade also highlights that something similar happens with radiofrequency licenses. With the deal approved, the trio of operators will have 98% of all available capacity between 1 GHz and 3 GHz, in addition to 95% in bands lower than 1 GHz.

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