Sale of Oi Móvel may double 4G internet prices for customers, says Idec – Telecommunications – Tecnoblog

the sale of Hi Mobile for Of course, TIM e Vivo was debated at a public hearing in the Chamber of Deputies, and the Brazilian Institute for Consumer Protection (Idec) presented a report on the prices charged by tele. For the entity, the reduction to three operators brings negative impacts and can double the prices of services.


Oi Store (Image: Publicity)

Idec’s statement takes into account that Oi’s plans are more affordable compared to those offered by other operators. A representative of the institute points out that it sells a prepaid service with 30 GB of internet for R$30 valid for a month.

In fact, Oi’s prepaid is very competitive when compared to the competition:

  • A Vivo sells the Vivo Turbo fortnightly with 4 GB of internet for R$19.99, which is equivalent to 8 GB of 4G per month for R$40;
  • A Of course has a 6GB Prezão package (+ 6GB bonus for six months) for R$29.90 monthly;
  • A TIM there is the TIM Pré Top with up to 13 GB of internet for R$30 monthly.

Idec also showed the price difference in control or postpaid, a category that Oi charges R$49.99 per month for 50 GB of internet. The institute pointed out the amount of internet and the monthly price of similar packages offered by the buyers, and the values ​​surpass the mark of R$100 a month.

Deputy Elias Vaz (PSB-GO), who signs the application for the public hearing, says that the purchase by Claro, TIM and Vivo “will be, without a doubt, a bad deal for the consumer”. The parliamentarian also questions the prior agreement of stalking horse, which guaranteed the trio the possibility of covering offers from other bidders in the Oi Móvel auction.

Operators defend the purchase of Oi Móvel

Operators were present at the hearing and defended the deal. For Vivo, the transaction is pro-competitive and should bring benefits to the consumer. TIM recalls that it was not a single company that bought the entire Oi Móvel, something that would not be possible due to the spectrum concentration limits imposed by law.

An Oi executive also mentioned the fact that the operator has 300% less municipalities covered than the market leader. Here I open a parenthesis to say that this information is not technically correct.

As the leader Vivo covers 4,991 locations with cell phones, Oi maintains a presence in 3,611 municipalities. It’s not such a distant number, but the situation gets worse when you take into account the 4G network: while Vivo covers around 4,200 cities, Oi has fourth generation in just 1,043 regions.

Most of Oi’s coverage is focused on 2G technology, which brings a terrible mobile internet experience. Even the presence with 3G is shy, and tele has a presence in only 1,670 municipalities with the third generation.

Anatel technicians defend the business

The purchase of Oi Móvel by Claro, TIM and Vivo has not yet received authorization from Anatel. However, an opinion from the agency’s technical area recommended the board of directors to authorize the deal.

The technical team concluded that the slicing of Oi Móvel with absorption by the three operators would not have a significant impact on market concentration, and that the competition rate would be within Anatel’s strategic goal.

The opinion also recognizes that Oi Móvel practices lower prices and has the initiative to profitably challenge its rivals, and even so the tele is not able to increase its customer base in an outstanding way. For this, it was considered that the tele infrastructure is outdated, which results in a downward trend in subscribers.

In addition to Anatel’s endorsement, the Oi Móvel business must also be approved by the Administrative Council for Economic Defense (Cade).

With information: Teletime, [2]

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