Brasil Telecom Beats Goal Of 500,000 Mobile Customers"

SAO PAULO -(Dow Jones)- Brazilian phone company Brasil Telecom Participacoes (BRP) has beaten its goal of signing up more than 500,000 mobile customers between launching services on Sept. 28 and the end of 2004, the company said in a statement Tuesday.

Growth was attributed to the firm's Pula-Pula promotion, in which mobile customers accrue credits in one month to pay off bills in alternate months, as well as Brasil Telecom's strong brand within its operating area in the south and center-west of Brazil.

The company's mobile unit, Brasil Telecom GSM, has extended the Pula-Pula promotion until Feb. 8 to meet customer demand, according to the statement.

The company's GSM-technology network, which is being built by France's Alcatel (ALA) and Sweden's Ericsson (ERICY) at a cost of some $350 million, is expected to reach 82% of the 42 million people living within its operating area, which covers 11 states in the south and center west of Brazil, including the capital, Brasilia.

Brasil Telecom launched mobile operations to defend its existing fixed line operations from other mobile competitors. Prior to launch, about 40% of the Brasil Telecom's total costs are spent on payments to rival mobile operators for receiving calls from its fixed line customers.

The company has previously said these payments to other operators could fall by between 150 million reals ($1=BRL2.67) and BRL200 million.

-By Matthew Cowley, Dow Jones Newswires; 5511 3145 1479; matthew.cowley@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 4th January 2005