TIM, Telebrás sign contract to provide internet access

Wednesday, July 13, 2011

Brazilian mobile operator TIM (NYSE: TSU) has signed a contract with federal telecom holding company Telebrás to be part of the federal government's universal internet access program, according to a statement.

With this agreement, the operator's mobile network - with national coverage - will be used to promote access to mobile broadband in laptops and desktops via modem.

The offer will be initially provided in two cities of Goiás state and two others in the federal district (DF). Commercial sales are expected to start in September.

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The main distinguishing feature of this offer is widespread access to mobile internet with a special plan created for this partnership. Access speeds will reach 1Mbps for 35 reais (US$22) a month, as established under national broadband plan PNBL.

By the end of next year, the companies expect to reach 1,000 cities in the country.

TIM is planning to invest 2.9bn reais in infrastructure this year, 85% of which will be allocated to its network, while for 2011-13 investments are expected to reach 8.5bn reais.

Last month, TIM signed a project worth 1bn reais for Nokia Siemens Networks, Huawei and Ericsson (Nasdaq: ERIC) to upgrade and double its network capacity.

The PNBL aims to expand internet access in the country. This week, telecoms watchdog Anatel and the telecoms ministry also signed agreements with operators Sercomtel, Algar, Oi, Telefônica and Vivo for the project.