Telefônica, Vivo announce unified broadband services

- Wednesday, October 19, 2011

Telefônica, Vivo announce unified broadband services

Moving forward in convergence, Brazilian fixed-line operator Telefônica will now offer fixed and mobile broadband services in São Paulo in conjunction with its mobile operator Vivo, the company said in a statement.

The new packages in São Paulo target Telefônica's Speedy and Ajato clients. According to the telco, users of these fixed broadband services will now be able to acquire Vivo's 3G services with discounts that can reach 50% for up to 12 months, besides receiving the modems free of charge.

This is the second bundled services initiative offered by the companies, both part of Spain's Telefónica (NYSE: TEF) group.

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Last week, the two firms announced a combined offer of fixed-line telephony and broadband services using a wireless structure for clients in the metropolitan area of Porto Alegre, capital of Rio Grande do Sul state. The services were the first fixed ones provided under the Vivo brand, and Telefônica expects to gradually expand them to other parts of the country.

Vivo also intends to expand a newly formed collective purchasing service, created for mobile users, to Telefônica's fixed-line costumers.

"Now that we've put together fixed and mobile telecommunications, we want to give our clients the opportunity to enjoy the benefits of convergence," Telefônica/Vivo general director Paulo Cesar Teixeira said.

COMPETITION

This new initiative comes a few weeks after competitors presented their own unified services.

Mobile operator Claro, pay-TV and internet provider Net Serviços and telco Embratel - all controlled by Mexico's América Móvil (NYSE: AMX) - have rolled out packages that combine HD pay-TV, video on demand, fixed broadband, fixed-line telephony, WiFi and 3G internet services.