The National Telecommunications Agency (Anatel) authorized the purchase of Nextel through the sure. The decision was made unanimously by the Board of Directors and established a deadline of up to six months for the deal to take effect.
According to the judgment published in Official Diary of the Union this Monday (30), Nextel should also adjust its spectrum licenses within two months from the completion of the operation.
Current legislation allows a single operator to have a maximum of 35% of the available spectrum (71.4 MHz) on radio frequencies below 1 GHz, and can be extended to up to 40% upon Anatel’s concession. This overlap occurs only in São Paulo (DDDs 11 and 12), Rio de Janeiro (DDD 21), Rio Grande do Sul (DDD 51), Federal District (DDD 61), Tocantins (DDD 63), Pará (DDD 91), Amazonas (DDD 92) and Maranhão (DDD 98).
In addition, companies should, within 18 months, eliminate overlapping of grants in the provision of Personal Mobile Service (SMP) and Fixed Switched Telephone Service (STFC). You will also need to return one of the Selection Codes for the Long Distance Call Provider. Claro owns Embratel, code 21, while Nextel has the 99.
In the opinion of the Competition Superintendence, the incorporation of Nextel “does not have the potential to significantly increase the average revenue per user”. Rapporteur Emmanoel Campelo also says that the acquisition is “pro-competitive by leveraging Claro’s ability to challenge the position of the leading provider [Vivo], enabling the adoption of a greater diversity of marketing strategies ”.
Cade had already approved purchase
The deal had already been approved without restrictions by the Administrative Council for Economic Defense (Cade). The entity had pointed out that Nextel is an “eminently regional” operator, having a low market share compared to its competitors. In July 2019, Nextel had a national market share of 1.53%, while Claro had 24.71%, being the second largest company in number of customers.
The market continues to have four large mobile operators, and Cade already warns that the reduction in the number of large players to three would result in a clear concern about increasing the possibility of coordinated action between them ”, such as the formation of a“ cartel ”between active companies.
This is worrying for Oi, which has suffered speculation about the sale of its mobile arm. The media has already reported that TIM, Vivo, AT&T and even China Mobile would be interested, but there is no concrete proposal.
With information: Mobile Time