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Brazil: World’s 5th largest wireless market could get rattled

By  |  September 23, 2013

Brazil’s wireless telco market is poised for a shake-up if predictions regarding a major sale from Telecom Italia pan-out.

Reports say Barclays Plc and BTIG LLC are expecting Telecom Italia to sell its Tim Participacoes, Brazil’s second-largest carrier.

Brazil’s telco watchdog Anatel is unlikely to clear any merger of Tim with another carrier, according to Barclays analysts. Telecom Italia is instead more likely to break off its Brazilian unit among competitors.

BTIG analysts suggested Tim assets could be bought by Vodafone Group.

Reports say if such a divesture occurs, the nation’s other top three carriers – Telefonica Brasil, America Movil and Oi – would likely welcome the market rattling, which is currently enduring strict price competition.

Tim currently has 73 million subscribers. A Tim spokesperson declined to comment on the matter.

Full Content: Bloomberg

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