Brazil Court Re-Allows Claro Cell Service In Minas State

RIO DE JANEIRO -(Dow Jones)- A Brazilian court late Thursday granted wireless phone operator Claro, a Brazilian unit of Mexico's America Movil, to restart its operations in the southeastern Brazilian state of Minas Gerais, the company said late Thursday.

Another court earlier this month had suspended Claro's activities in Minas Gerais after its wireless rival, Telemig Celular, complained about a conflict of interest.

Telemig Celular, owned by Banco Opportunity, complained to a court in Brasilia that the involvement of the local Telos pension fund, sponsored by long-distance telecommunications firm Embratel, in Claro as well as in Telemig Celular, would hurt their business.

Claro, which has only recently started operations in the market of Minas Gerais, had launched an aggressive marketing campaign in the state, which included the sale of mobile phones for one Brazilian real ($0.42) and monthly subscription plans for BRL35.00.

Claro currently holds 21.8% of the Brazilian cell phone market, lagging behind Vivo, a joint venture of Spain's Telefonica Moviles, Portugal Telecom and Tim, the local unit of Telecom Italia. Claro operates in 21 states, including Minas Gerais.

-By Rogerio Jelmayer; Dow Jones Newswires; 5511 3145 1480; rogerio.jelmayer@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 23rd December 2005