Kaspersky Kis and Kav Keys 18-02-10

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The government of Lula plans to create a public telecommunications group to promote the spread of broadband, which would raise the competitive level in the Latin American giant.
The Brazilian government of President Lula da Silva is determined to pursue all means available to the extension of broadband in the Latin American giant. And for that, among its plans includes the creation of a state company to provide broadband services at popular prices, announced Wednesday, Cezar Alvarez, national coordinator of digital policy of the president.
More competitors:
This initiative can raise the level of competition in an already highly competitive market, where Telefonica is second sector. The creation of the state operator to Telefónica would be a problem since, in recent years, Brazil's economic boom continued growth PIB_y with its huge size (population of about 190 million) - has become the second market for Telefonica, well above the UK, which is the third.
In the first nine months of last year, Telefonica turnover of 6.071 million euros in Brazil, 14.5% of total consolidated sales, with a gross operating profit (EBITDA) of 2.294 million (13.8% of total group). The Brazilian market has been complicated lately for all operators and the government in 2008 prompted the merger of the two major Brazilian operators (Telemar and Brasil Telecom) to create Oi, a national champion in the sector.
And recently the French group Vivendi purchased-in-tough battle with an alternative operator Telefonica and rapid growth, called GVT, which now, with financial backing from French giant, may be even more aggressive in its trade policy. Moreover, the field will increase in the mobile phone market, where Telefonica-controlled 50% of Portugal Telecom Group-Living, the market leader (see attached information). The Government plans to introduce the figure of mobile virtual network operators, which rent network operators with their own infrastructure and tender fifth mobile license.
8,000 million:
The government's plan, according to Alvarez, is to use the state-owned Telecommunication Brasileiras (Telebras) to provide broadband services to citizens at popular prices. According to the national coordinator of digital policy, including government plans set aside about 20,000 million reals (about 8,000 billion) to revive the state oil company and increase competition by offering broadband services at half the price charged by local operators, according to Bloomberg Alvarez said.
Responsible for digital policy of the Lula government, prices in the telecommunications sector of Latin America's biggest economy are "high because there are monopolies," Alvarez said, adding that some cities served by a single operator, as occurs in the State of Sao Paulo, where Telefonica has a dominant presence.
According to the official, Telebras could offer broadband services with prices from 15 raise to 35 raise (between 6 and 14 euros) per month, compared to the average rate of 70 reals (27 euros) per month billed to private operators. The government is considering a plan to entrust the management Telebras national fiber optic network and provide broadband services to consumers directly.
Uncertainty:
However, government plans have not yet closed for weeks because he had speculated that the state company does not provide direct services to consumers, but it became a sort of neutral operator to be deployed in advanced networks areas where private operators are not present because they are not profitable, as reported EXPANSION on 11 December. This alternative plan, with an additional company of private groups, would represent a competitive impact much less that the relaunch of a whole group, who provide direct services to individuals and business users.
The Mexican stock exchange rises Axtel:
The Mexican operator Axtel, the second group fixed after Telmex, was fired Tuesday by 4% in stock as rumors suggest it could be a takeover target by a foreign group such as Telefonica. The Mexican Congress debates a law that would lift the ban on non-Mexican groups to take control of fixed telephony companies.

Televisa Teams With Nextel mobile
Televisa, the Mexican television giant, and the first cable operator in the country, has requested permission to buy up to 30% of Nextel, the fourth largest Mexican mobile market. Televisa's entry into the mobile business will face directly with Telefonica (the second operator in the country, with 20% share) and allow you to offer integrated Internet services, television and mobile.

Live fires its benefits to 335 million euros in 2009
Vivo, the largest mobile phone operator in Brazil, equally controlled by Telefonica and Portugal Telecom, won last year a net profit of 857.5 million reals (335 million euros), up 120% over the year prev. Despite the strong annual earnings growth the last quarter of 2009 fell by 0.2% over the same period of 2008 to 222.1 million reais. The company attributed the profit growth last year to improve both their operational and financial results, reflected in a reduction of 28.6% debt. Live in December was 51.74 million customers, an increase of 15.1% over the same month of 2008. The company's net income rose 3.4% in 2009 to 16,363.2 billion reais, while operating expenses only increased by 1.8% to 11.145 million reais. The gross operating profit (EBITDA) amounted to 5218.3 million reais, an increase of 7.2% compared to 2008. Vivo's net debt at the end of December was 3.786 million reais, of which about 81.4% corresponded to long-term obligations.

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