Portugal Telecom to invest in fiber optics, cloud computing

Wednesday, September 14, 2011

Portugal Telecom (NYSE: PT) has announced that it will increase its investments in fiber optic networks and cloud computing in Brazil due to the "wave of data" expected in the coming years - particularly in 2014, when the country will host the FIFA World Cup.

"This investment is unavoidable," said PT CEO Zeinal Bava, adding that Brazil will now benefit from lower fiber prices by overcoming the copper thread.

Portugal Telecom has been a major controller of Brazilian telecom giant Oi since last year, when it sold its 50% stake in Vivo, the country's largest mobile operator, to Telefônica, the Brazilian unit of Spain's Telefónica (NYSE: TEF).

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"We are in talks with Oi to define an investment plan," Bava said, declining to give further details on the amount and timing of the planned investment.

By Luana Pavani