Brt launching mobile ops. despite Cade decision

Brasil Telecom is going to launch wireless services in August despite the decision by Brazil's antitrust authority Cade to allow Telecom Italia to recover its full shareholder interest in Brasil Telecom, according to business newspaper Gazetta Mercantil. "This decision [by Cade] will not affect our plans. We will launch our services at the end of August," Brasil Telecom chief executive Carla Cico said during a trip to New York. A Brasil Telecom spokesperson confirmed to BNamericas that Brasil Telecom GSM will launch commercial operations in August and will invest between US$300mn and US$350mn through the end of 2005 to build the network and launch services. Cade unanimously approved the return of Telecom Italia's full shareholder interest in Brazil Telecom last week. Brasil Telecom had asked the authorities to stop Telecom Italia from obtaining the shares because there would be a conflict with its own mobile operator under the TIM unit and Brasil Telecom GSM. On Thursday, the Italian firm reiterated the fact that it accepted the limitations imposed by Cade, that there are no longer any barriers to recovering its full share in Brasil Telecom and that it is up to its partner, Brazil's Opportunity, to return the shares in line with an August 2002 agreement between the two parties. "We are looking to exercise our right to return to the shareholder group but this was not accepted by the other parties," Telecom Italia corporate affairs manager Ludgero José Pattaro said after a public hearing in Brazil's lower house of congress. Brasil Telecom is installing a wireless network in the federal district and nine states in which it operates a fixed line service, betting that the demand for mobile service will grow as Brazil recuperates from its 2003 recession. Cell phone companies increased their client bases with 6 million new clients between January and May of this year, more than double the rate of expansion of 2.49 million during the same period last year. The growth of the five first months of this year coincided with a drop in cell phone and mobile service prices.