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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

UPDATE 1-Brazilian telecoms snub U.S. official over Huawei 5G pressure -source

Sat 7th November, 2020 1:04am
(Adds industry source comments)
    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  HWT.UL  from the Brazilian 5G equipment market, an industry
source said on Friday.
    The carriers declined 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, the
person in contact with telecom sector executives said.
    "This invitation is not compatible with free-market choices
that we are used to. We should be able to freely make our best
financial decisions," the source said, requesting anonymity.
    The invitation from U.S. ambassador Todd Chapman was first
reported by Folha de S.Paulo newspaper, which together with the
Valor Economico business daily said the companies preferred not
to attend.
    Telefonica Brasil SA  VIVT4.SA , Grupo Oi SA  OIBR3.SA , TIM
Participações SA  TIMS3.SA , controlled by Telecom Italia SpA
 TLIT.MI  and Claro, owned by Mexico's America Movil  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.
    The U.S. embassy did not immediately reply to a request for
comment. The four carriers declined to comment.
    The Trump administration has stepped up diplomatic pressure
internationally to block the use of Huawei equipment, alleging
that it could be used for spying by the Chinese state. Huawei
has repeatedly denied being a national security risk.
    "Huawei is the backbone of China's global surveillance,"
Krach wrote in an op/ed article published in August in 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 and
Rosalba O'Brien)
 ((anthony.boadle@tr.com +55 61 98204-1110;  https://twitter.com/anthonyboadle
 ;))
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