Brazil's SDE to Investigate Local Mobile Operators

SAO PAULO -(Dow Jones)- The Brazilian Consumer Affairs Division, or SDE, has opened an investigation into colusion on prices among the country's four largest mobile phone operators, it said in a statement late Thursday.

SDE, a division of the Finance Ministry, said that it is looking into allegations that the operators set high interconnection tariffs, hurting small fixed phone operators.

Under investigation are Brazil's main operators Vivo Participacoes, which is jointly owned by Spain's Telefonica and Portugal Telecom; TIM Participacoes, the local unit of Telecom Italia; Claro, the local unit of Mexico's America Movil; and Tele Norte Leste Participacoes, or Oi.

Combined, the four companies have a market share larger than 95%.

The investigation arose from a complaint by local small fixed phone operators Global Village Telecom, Intelig Telecomunicacoes, Transit do Brasil and Easytone Telecomunicacoes.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521; rogerio.jelmayer@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 22nd August 2008