Spain’s Telefónica is monitoring Vivendi’s Brazilian fixed-line operator GVT and is “ready to act in any way needed”.
Telefónica’s CFO Ángel Vilá told investors on the telco’s Q2 results call that its fixed-line strategy in Brazil was…
Spain’s Telefónica is monitoring Vivendi’s Brazilian fixed-line operator GVT and is “ready to act in any way needed”.
Telefónica’s CFO Ángel Vilá told investors on the telco’s Q2 results call that its fixed-line strategy in Brazil was going well, but that it was looking at all possible scenarios including GVT.
Recently Vivendi offloaded Moroccan incumbent Maroc Telecom and has agreed to sell French mobile operator SFR, leaving GVT as the media group’s only remaining telecoms asset.
Vivendi declined to comment on the speculation.
The media group acquired GVT in 2009 – outbidding Telefónica – but moved to sell it in 2012, only to suspend the process in March 2013 as no bidder was prepared to meet its €7bn asking price.
GVT has also been seen as an acquisition target for Telecom Italia’s operator in the country, TIM Brasil. The Italian incumbent’s CEO Marco Patuano was reported to be keen on TIM eventually merging with GVT.
On the call Vilá said Brazilian consumers were not yet buying bundled telecoms products, but that the country could follow parts of Europe down the convergence path.
Analysts have instead been predicting a consolidation story in Brazil’s mobile sector, where there are currently four operators. The superintendent of competition at telecoms regulator Anatel has said consolidation in the market will hinge upon whether all four operators acquire 700 MHz spectrum, which is set to be auctioned in September.
Carlos Baigorri said that if an operator cannot afford to participate in the auction then the market will want to break that telco up. He added that he feared for the existence of Oi, Brazil’s most indebted mobile player, if it could not raise the funds to win frequencies.
Telefonica is focusing on Mexico at the moment. Yesterday it confirmed to the market it was in a negotiating process in the country following a newspaper report saying that it was in talks to acquire smaller mobile operator Iusacell.
