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VIV - Telefonica Brasil SA News Story

$7.98 0.2  2.7%

Last Trade - 05/03/21

Sector
Telecoms
Size
Large Cap
Market Cap £13.02bn
Enterprise Value £13.97bn
Revenue £5.48bn
Position in Universe 617th / 6651

Brazilian telecoms snub U.S. official over Huawei 5G pressure -media

Fri 6th November, 2020 11:48pm
BRASILIA, Nov 6 (Reuters) - Brazil's top four telecom
companies have decide not to meet with a visiting senior U.S.
official who has advocated excluding China's Huawei Technologies
Co from the Brazilian 5G equipment market, two local newspapers
reported on Friday.
    The carriers rejected undue pressure in declining a U.S.
embassy invitation to meet on Monday in Sao Paulo with Keith
Krach, U.S. under secretary of state for economic growth, energy
and the environment, unnamed industry sources told the
newspapers.
    Telefonica Brasil SA  VIVT4.SA , Grupo Oi SA  OIBR3.SA , TIM
Participações SA  TSUN.MX , controlled by Telecom Italia SpA
 TLIT.MI  and Claro, owned by Mexico's America Movil SAB de CV
 AMXL.MX , each control between 19% and 29% of Brazil's wireless
market.
    They already use Huawei equipment in preparation for the
auctioning of spectrum concessions next year in Brazil and do
not support a ban on Huawei sought by the U.S. government.
    Folha de S.Paulo first reported the invitation extended by
U.S. ambassador Todd Chapman, and with Valor Economico both
newspaper reported that the companies preferred not to attend.
    The U.S. embassy did not immediately reply to a request for
comment. A spokeswoman for Oi declined to comment.
    The Trump administration has stepped up efforts to convince
Brazilian carriers not buy Huawei equipment, alleging the
Chinese company reports to China's Communist government and is a
security risk that threatens the privacy of wireless users
worldwide. It has offered to finance the purchase of 5G
equipment from Western companies such as Nokia and Ericsson. 
    "Huawei is the backbone of China's global surveillance,"
Krach wrote in an op/ed article published in August by Brazil's
O Globo newspaper.
    Krach said the U.S. government and its partners were
accelerating efforts to protect global economic security by
restricting the involvement of Huawei in 5G networks.
    "There are now more than 30 countries participating in the
Clean Network," he wrote.

 (Writing by Anthony Boadle; Editing by David Gregorio)
 ((anthony.boadle@tr.com +55 61 98204-1110;  https://twitter.com/anthonyboadle
 ;))
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