Brazil Telecom Cos Reach Agreement On Call Costs -Reports

SAO PAULO -(Dow Jones)- Seven of Brazil's telecommunications operators have ended four months of testy negotiations over charges for calls from fixed lines to mobile phones, local press reported Tuesday.

Late Monday, the seven operators agreed to a 4.5% hike for the price paid to mobile operators for receiving calls from fixed-line operators, the reports said.

The agreement over interconnection fees, as these payments are known, will also trigger a 7.99% hike in the prices charged by fixed-line operators to consumers for calls to mobile phones.

Seven operators are reported to have signed the agreement: mobile operators Vivo, a joint venture of Spain's Telefonica Moviles (TEM) and Portugal Telecom (PT); Claro, a unit of Mexico's America Movil (AMX); TIM Brazil, a unit of Telecom Italia (TI); fixed-line operators Telesp (TSP) and CTBC (CTBC4.BR); and Brasil Telecom Participacoes (BRP) and its mobile unit Brasil Telecom GSM.

Telemar and its mobile unit Oi haven't signed the agreement, according to the reports.

The operators are expected to present the agreement to telecoms regulator Anatel later Tuesday. The regulator must approve the agreement for the price hike to be effective.

Under moves to deregulate the telecom market, this is the first time that Anatel hasn't imposed a price hike on the operators, allowing them to negotiate among themselves.

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

(END) Dow Jones Newswires"

Posted to the site on 31st May 2005