Brasil Telecom

Brasil Telecom S.A., commonly abbreviated as BrT, was a major Brazilian telecommunications operator created during the privatization and breakup of the Telebrás system in the late 1990s. Its original corporate name was Tele Centro Sul, reflecting the license area it inherited and the central and southern Brazilian states it served. The company was headquartered in Brasília and operated across Acre, Rondônia, Goiás, Tocantins, Mato Grosso, Mato Grosso do Sul, Paraná, Santa Catarina, Rio Grande do Sul, and the Federal District. The company emerged as one of Brazil's principal fixed-line operators after the government divided the former state telecommunications monopoly into regional operating companies. In June 1998, an investment group associated with Banco Opportunity, Telecom Italia, Citigroup, and Brazilian pension-fund investors paid 2.07 billion Brazilian reais for Tele Centro Sul as part of the privatization process. The operator held a regional fixed-line concession and became one of the country's three principal landline companies, alongside the other regional operators formed from Telebrás. It also became the country's only long-distance operator in the post-privatization structure. Brasil Telecom broadened its business beyond traditional voice services as Brazilian communications markets changed. In 2001 it acquired a small interest in the iBest website and introduced an internet portal and free internet-access service. It later expanded into wireless communications, beginning mobile operations in 2004. Its broader portfolio included fixed telephony, long-distance calling, internet access, broadband, and mobile telephone services. Ownership and control were contested throughout much of the company's independent life. Opportunity had managed investment funds for institutions including Citigroup and Brazilian pension funds and initially played a central role in the company's control structure. Disputes between Opportunity, Telecom Italia, Citigroup, and the pension funds generated extensive litigation and eventually led to Citigroup and the pension funds taking control of the relevant investment vehicles in 2005, removing Opportunity from management. The conflict also intersected with disputes concerning Telecom Italia's relationship with Brasil Telecom and the acquisition of Companhia Riograndense de Telecomunicações, or CRT. Brasil Telecom was publicly traded in Brazil and had American depositary securities traded on the New York Stock Exchange. The company was included in Brazil's Ibovespa index during its listed period. In 2008, Oi announced an agreement to acquire Brasil Telecom. The transaction required a change to Brazilian telecommunications legislation because the rules then in force restricted a fixed-line company from acquiring another fixed-line operator in a different licensing area. After the legal framework was changed, Oi completed the acquisition on 9 January 2009. Brasil Telecom subsequently operated as an Oi subsidiary and ceased to exist as an independent telecommunications brand and corporate operator.

Brasil Telecom was created in the 1998 privatization of Brazil's Telebrás telecommunications system. The breakup divided the former state monopoly into regional fixed-line companies and separate long-distance and mobile operators. Brasil Telecom initially operated under the name Tele Centro Sul, a title associated with its central and southern service territory. Its concession covered Acre, Rondônia, Goiás, Tocantins, Mato Grosso, Mato Grosso do Sul, Paraná, Santa Catarina, Rio Grande do Sul, and the Federal District, with Brasília serving as its headquarters. In June 1998, an investment consortium connected with Banco Opportunity, Telecom Italia, Citigroup, and Brazilian pension-fund investors acquired Tele Centro Sul from the Brazilian government for 2.07 billion Brazilian reais. The new operator became one of Brazil's three principal regional landline companies and the country's sole long-distance provider in the structure established after Telebrás was dismantled. The company subsequently adopted the Brasil Telecom name as it developed a broader commercial identity. The operator initially centered its business on fixed-line voice and long-distance services, but the liberalization and digitalization of Brazilian communications encouraged it to enter adjacent markets. In 2001, Brasil Telecom bought a small stake in the iBest website and launched an internet portal together with a free internet-access service. In 2004, it started a wireless operation, extending the company into mobile telephony. Its resulting portfolio included fixed telephony, long-distance calls, internet access, broadband, and mobile services. Control of the company became entangled in disputes among Opportunity, Telecom Italia, Citigroup, and the Brazilian pension funds whose money was managed through investment vehicles associated with Opportunity. Brasil Telecom and Opportunity also commissioned Kroll to examine whether Telecom Italia had competed with Brasil Telecom in connection with Brasil Telecom's purchase of Companhia Riograndense de Telecomunicações from Telefónica. The conflict produced court proceedings and allegations that Kroll had conducted improper surveillance of Brazilian government officials. Separately, Opportunity faced legal disputes with Citigroup and the pension-fund investors. In 2005, Citigroup and the pension funds took control of the relevant funds and removed Opportunity from their management, ultimately depriving Opportunity of control over Brasil Telecom and several other portfolio companies. Brasil Telecom became a public company during this period. Its shares traded on the Brazilian BM&F Bovespa exchange, and its securities were also traded on the New York Stock Exchange. The company was included in the Ibovespa index, reflecting its importance within Brazil's listed market. Oi's proposed acquisition marked the final stage of Brasil Telecom's independent history. The transaction was announced in 2008 but required legislative changes. Brazilian rules at the time restricted a fixed-line operator from purchasing another fixed-line operator located in a different license area. Once the legal framework was amended, Oi completed the transaction on 9 January 2009. Brasil Telecom became an Oi subsidiary and was subsequently integrated into Oi's operations, ending its existence as an independent telecommunications company.

• 2009

  Oi completes the acquisition

  [1]Brasil Telecomen.wikipedia.org

  Oi completed the acquisition on 9 January 2009, making Brasil Telecom a subsidiary and ending its independent corporate operation.

• 2008

  Oi announces acquisition

  [1]Brasil Telecomen.wikipedia.org

  Oi announced its planned purchase of Brasil Telecom, subject to changes in telecommunications law.

• 2005

  Opportunity loses control of the investment structure

  [1]Brasil Telecomen.wikipedia.org

  Citigroup and Brazilian pension funds took control of their investment vehicles and removed Opportunity from management after extended disputes.

• 2004

  Wireless service begins

  [1]Brasil Telecomen.wikipedia.org

  Brasil Telecom started a wireless communications operation, adding mobile services to its fixed-line portfolio.

• 2001

  Entry into internet portals and free internet access

  [1]Brasil Telecomen.wikipedia.org

  The company acquired a small stake in iBest and launched an internet portal and free internet-access service.

• 1998

  Tele Centro Sul is created through Telebrás privatization

  [1]Brasil Telecomen.wikipedia.org

  An investor group associated with Opportunity, Telecom Italia, Citigroup, and Brazilian pension funds acquired the regional operator from the Brazilian government for 2.07 billion Brazilian reais.

A major regional Brazilian telecommunications operator formed through the privatization of Telebrás, with a broad service portfolio spanning fixed-line voice, long-distance, internet, broadband, and mobile communications.

• Fixed telecommunications · 1998

  Fixed-line telephone services

  Brasil Telecom's original and most established business was regional fixed-line telephony. The company inherited a large service territory from the Telebrás privatization and operated as one of Brazil's principal regional landline carriers.

• Voice telecommunications · 1998

  Long-distance services

  The post-privatization structure gave Brasil Telecom a national long-distance role in addition to its regional fixed-line concession. Long-distance calling was therefore a central part of its early telecommunications offering.

• Internet services · 2001

  Internet portal and free internet access

  Following its investment in iBest, Brasil Telecom introduced an internet portal and free internet-access service in 2001, extending the company from traditional voice networks into consumer online services.

• Mobile telecommunications · 2004

  Wireless and mobile services

  Brasil Telecom began wireless operations in 2004. Mobile service complemented its fixed-line business and reflected the company's effort to participate in Brazil's increasingly convergent telecommunications market.

• Data telecommunications

  Broadband internet

  Broadband was part of Brasil Telecom's broader fixed-network and internet portfolio. It represented the migration of the operator's infrastructure from conventional voice connectivity toward higher-capacity data services.

• 2000

  Kroll investigation and surveillance allegations

  Brasil Telecom and Opportunity hired Kroll to investigate whether Telecom Italia had competed with Brasil Telecom during its acquisition of Companhia Riograndense de Telecomunicações from Telefónica. The investigation became part of the wider struggle for control of Brasil Telecom, and Kroll was accused of spying on Brazilian government officials.

  Source

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• 2008

  Agree to be acquired by OiM&A

  Background

  Oi sought to acquire Brasil Telecom, but Brazilian telecommunications rules restricted one fixed-line company from purchasing another fixed-line operator in a different license area.

  Action taken

  Oi and Brasil Telecom proceeded with the acquisition plan while the relevant legislation was changed.

  Aftermath

  The acquisition was completed on 9 January 2009, and Brasil Telecom became an Oi subsidiary.

  Source

• 2004

  Launch wireless communications serviceProduct launch

  Background

  The company was expanding from its regional fixed-line base into additional telecommunications segments.

  Action taken

  Brasil Telecom started a wireless service.

  Aftermath

  Wireless communications became part of the company's multi-service portfolio before its acquisition by Oi.

  Source

• 2001

  Expand into internet services through iBestStrategy

  Background

  Brasil Telecom was seeking opportunities beyond conventional fixed-line voice services as internet use expanded in Brazil.

  Action taken

  The company acquired a small stake in iBest and launched an internet portal and free internet-access service.

  Aftermath

  The move broadened Brasil Telecom's portfolio into online consumer services, although the available reference material does not provide subsequent performance figures.

  Source

1. 1Brasil Telecomen.wikipedia.org