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Brazilian Rule Changes May Allow Telecoms Firms To Unload Assets

Summary

A Reuters articles anticipates long overdue rule changes that may benefit OI Brazil and Vivo.

The shake-up would allow OI and Vivo to sell or ditch hundreds of under-used real estate properties.

While difficult to estimate, the positive impact may be in the R$ billion range.

FEBRUARY 20, 2018 Reuters article

>Brazil’s major telecoms operators stand to free up hundreds of millions of dollars to invest in technologies like 4G and broadband by unloading unwanted assets, as a push by the sector to overhaul decades-old rules shows signs of paying off.

>Although legislation will be slowed in 2018 because of elections, Communications Minister Gilberto Kassab will lead talks with lawmakers to promote the changes this year, said a person with knowledge of the issue who requested anonymity to discuss internal matters.

>If a bill is approved, it will free up significant cash to expand modern, profitable segments, according to company sources.

This commentary is taken from a BTG Pactual Global Research research report dated 31 October 2016: 

Disclosure: I am/we are long VIV.