TIM Earmarks US$1.02bn for 3G, WiMax Licenses"
Brazil's second largest mobile phone company TIM has earmarked over 2bn reais (US$1.02bn) this year for acquiring 3G mobile and WiMax broadband licenses, local newspapers reported TIM's CEO Mário César Pereira de Araújo as saying during a conference call.
TIM, the Brazilian mobile unit of Europe's fourth largest telecoms operator Telecom Italia, has set aside the funds as part of a 5.7bn-real investment to be made between now and 2009, newspaper Estado de S Paulo reported.
Araújo reportedly said TIM expects the 3G auction to take place this year but that its participation would depend on the bidding rules and other details of the auction.
Brazil's telecoms regulator Anatel has said it expects to issue bidding rules for the auction of 3G mobile licenses in October.
TIM representatives plan to attend Anatel's public hearing on 3G scheduled for later this month to discuss the preliminary bidding rules, the executive said.
COVERGENCE
TIM is currently negotiating interconnection agreements with fixed line operators to start offering converged fixed and mobile voice services as well as broadband in the second half of 2007, newspaper Gazeta Mercantil reported Araújo as saying.
TIM has a fixed line concession license but no fixed line infrastructure. However, the company offers a fixed mobile service, called TIM Casa, in São Paulo.
Following the example of UK mobile phone giant Vodafone, TIM intends to offer all services without owning a fixed line network.
TIM reported a net profit of 34mn reais in the second quarter of 2007 versus a net loss of 239mn reais in 2Q06, while revenues climb 40% to 4.23bn reais from 3.20bn reais in 2Q06."
Posted to the site on 25th July 2007