Brazil’s Oi Swallows Competition and Eyes Telephone Market Overseas

Telemar Oi Brazil's Telecommunication Company Oi's president, Luiz Eduardo Falco, upon confirming the purchase of control over Brasil Telecom (BrT), said that  US$ 30 billion reais ( US$ 13.2 billion) will be invested in the new company over five years.

The aim is to expand the number of customers from the current 53 million to 110 million, of which 30 million should be obtained in foreign countries. Oi was previously known as Telemar.

Despite having disbursed 5.3 billion reais ( US$ 2.3 billion) for control over BrT, in a negotiation process that lasted throughout the whole of last year, Falco did not rule out the possibility of new purchases in the sector. "New purchases are not out of our radar, but we must check our cash commitments."

He also stated that at this moment of global crisis, good offers may arise. The executive said that there is no credit crunch. "There is credit available, only it is more expensive. Oi has always obtained credit and should continue obtaining it, here and abroad," he said.

Falco has already assumed the presidency of the new company, whose brand is going to be Oi. He said, however, that the process of integration of Oi with Brasil Telecom should last around 18 months.

"We are going to spend a hundred million in the integration process," he informed. At the end of that period, he expects to save 1 billion reais (US$ 440.8 million) with the synergy between the two companies.

Falco said that he is going to individually evaluate each of the BrT products that are strong in the market, so that they can be maintained. Concerning each one of them, especially the IG internet provider, there already seems to be a favourable trend for the continuation of operation.

As Falco explained, Oi wants to seek internationalization in Latin America, the Caribbean and the Portuguese-speaking African countries. He revealed that the new company will be based in Rio de Janeiro. Three directors at BrT will be members of the board at the new company: Luiz Perrone, who will take over the area of Foreign Affairs; Francisco Santiago, who should be the director of Operations; and Jorge Jardim, in the area of Institutional Relations.

ABr

Tags:

You May Also Like

Brazil-Venezuela Venture Will Refine 200,000 Oil Barrels a Day

Brazil's government-managed oil multinational Petrobras and government owned Petróleos de Venezuela (PDVSA) signed on ...

Rio, Brazil, Finds Key to Sell Fashion Overseas: Invention

One of the dresses is all printed. From afar, the white and black print ...

Children dictionary teaches Brazil about Arab world

A Is For Arab, in New Brazilian Dictionary for Brazilian Children

Brazilian children have just won an ABC to the Arab culture. In the book ...

A Loud Protest Against Too Many Taxes in Brazil

Over 100 institutions representing industry, commerce, services, agriculture, and transportation have launched a campaign ...

Brazil: Local Populations in the Amazon Start Large-Scale Timber Management

The Tapajós National Forest (Flona) will be Brazil’s first national forest in which the ...

Brazilian Army Worried About US Military Build Up on Brazil’s Borders

It is because of the strategic importance of South America that the United States ...

Brazil’s Chief of Staff Scolds Inflation-Mongers

The head of the Presidential Civilian Advisory Staff, Minister José Dirceu, criticized some people’s ...

Gas production in Brazil

Brazil to Invest US$ 18 Bi in Gas and More than Double Production

Brazil's state-controlled oil company Petrobras is planning to invest US$ 18 billion in the ...

Lula Urges Confidence for Brazil to Get New Markets

Beginning in June, typical Brazilian items, such as coffee and thongs, will be sold ...

Brazil’s River Old Integration Plan Back on the Drawing Board

Brazil’s São Francisco River Valley integration project developed by the Brazilian Ministry of National ...