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Federal Prosecutor opens investigation into Anatel deal with Telefonica

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Brazil’s Federal Prosecutor decided to open an investigation to determine if the National Telecommunications Agency (Anatel) favored the Telefonica Group, owner of the Vivo brand. The investigation involves the approval of a Term of Adjustment of Conduct (TAC) for the company, which converts regulatory fines into investments in the operator’s own network. A similar agreement was denied to the Oi Group, while the operator was in judicial recovery last year.

The ordinance that determines the opening of the investigation, obtained by O Globo, states that the objective “to establish an alleged corruption scheme at Anatel”, in favouring the Telefonica group to the detriment of the Oi group.

The TAC with Vivo exchanges a total of BRL 2.2 billion in fines for investments of around BRL 5 billion in broadband, mobile and fixed telephony. The terms of the commitment are challenged by competitors Claro and TIM and by the Brazilian Association of Competitive Telecommunications Services Providers