Brazil watchdog gives Oi asset sale green light with conditions

Brazil watchdog gives Oi asset sale green light with conditions

Brazil’s competition regulator approved the sale of Oi’s mobile assets to rivals Claro Brasil, Telefonica Brasil (Vivo) and TIM Brasil but with conditions, after recent calls to have the deal blocked.

Competition regulator Cade stated buyers must meet certain conditions which would welcome future players entering the market.

Obligations such as a pledge to divest half of the base stations acquired through public offering and provide wholesale access to MVNOs including in technologies such as IoT and 5G.

The watchdog acknowledged although the sale will result in fewer operators in the market, there would be more negative ramifications if Oi was left to become insolvent as a result of the sale being canned.

The regulator stated there would be wider damage to fixed telephony, broadband, data communication services and other essential industries that rely on them to operate. 

Earlier this week the sale hit a sudden roadblock when Copel Telecom challenged telecoms regulator Anatel the legality of its decision to approve the sale.

The sale of Oi’s assets spans six years when in 2016 the company filed for bankruptcy after it was unable to keep up with its debts. Its rivals have been circling the failed operator since 2020.

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