Telemar: IPCA decision costing operators US$3.4mn a day

Brazilian wireline operators are missing out on combined revenues of 10mn reais (US$3.4mn) a day due to the court injunction adjusting regulated prices using the IPCA inflation index, newspaper Valor Economico quoted Telemar president Luiz Eduardo Falco as saying. Falco was speaking before a scheduled meeting with Daniel Goldberg, economic law secretary at the Brazilian justice ministry. His comments came as it transpired that Telefonica filed an appeal against the court injunction, following in Telemar's footsteps. The injunction was put in place by a Brasilia federal court while it deliberates the merits of the case. Falco said he was confident the court would rule in favor of IGP-DI, as laid down in the concession contracts. His position is backed by telecom operators and regulator Anatel. The government, through the federal public ministry, argues that the IGP-DI inflation figure should be dropped because it is much higher than the IPCA index. "I believe that regardless the IGP-DI must prevail, otherwise they are tearing up the contract," Falco said. "We don't want anything more than the contract."