Telebrás expects profits by 2H12

Thursday, September 29, 2011

Brazilian state-run telco Telebrás expects to start generating profits by the second half of 2012, according to the company's finance and investor relations director, Bolivar Moura Neto.

"Our prediction is that by the second half of next year we will begin to have positive monthly results. It will depend, though, on the business deals we've already been making to generate revenues," Neto was quoted as saying by Reuters.

According to the executive, plans expected to boost the telco's revenues are mostly tied to the sale network capacity to ISPs and operators interested in taking part in national broadband plan PNBL.

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Another major deal the executive cited as vital to the company's finances is a signed partnership with pay-TV operator SKY to provide 4G mobile broadband, outside PNBL's realm. He also underlined minor agreements - in particular with small ISPs - that are already in force.

"We've resumed the pace of investments in our network, and results will be seen in our commercial area," the executive was quoted as saying.

Bankrupted in the past, the state-controlled telco has been revived by the federal government amid heavy criticism to coordinate the deployment of the network infrastructure intended for PNBL.

Telebrás is also in charge of deploying the necessary technology to all 12 cities that will host 2014 World Cup games.