Telebrás suspends fiber optic deployment projects

- Friday, September 9, 2011

Telebrás suspends fiber optic deployment projects

Brazilian state-owned telecoms operator Telebrás has canceled parts of a public auction held for the acquisition and deployment of fiber optic networks under national broadband plan PNBL, news source Convergencia Digital reported.

The suspended stretches are related to projects in the country's north and northeast.

Telebrás reportedly failed to reach a consensus with the winning company, CCBR Catel Construções do Brasil, regarding a discount on some values proposed in the bid. The state firm then opted to cancel part of auction and now plans to hold new tenders.

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There were disagreements over costs of sections 2 and 4 of the tender - concerning studies, projects and underground works in the two regions - and the state telco was thus negotiating a reduction of the costs. CCBR won the tender with a total 147mn-real (US$87.4mn) bid.

Telebrás carried out an analysis after CCBR had been declared winner. The state telco reportedly found overpricing in some of the line items when compared to bids presented by other companies.

Other parts of the auction, however, have been kept, such as lots related to projects in the fiber optics-network's southeast portion.

The state firm did not comment on what impact its decision to suspend or re-tender would have on the PNBL's schedule.