Brazilian telecom regulator Anatel announced that it will analyze the opening of a procedure to decide the possible expiration of the concessions of the telecommunications company Oi, which filed for bankruptcy in mid-2016.
In a statement, Anatel reported that the proposal to carry out this process, which includes the measures to be taken in case this scenario materializes, was presented by the counselor Igor de Freitas. It is not yet known when it will be treated by the council of the organism.
According to the regulator, Fourteen months have passed since the company declared itself in judicial recovery and “there is no concrete prospect of overcoming the problems so far, given the absence of a plan that guarantees the sustainability of operations in the medium and long term.”
This way, “a possible unfavorable scenario for the judicial recovery process is now considered more likely, and therefore, this requires immediate action, considering the negative consequences that this may have for Brazilian society and economy”.
Oi is the country’s leading fixed telephony company. In addition, it offers pay TV, mobile telephony and fixed and mobile Internet. The judicial recovery process of the company is considered the largest in Latin American history and involves a R$ 65 billion debt (USD 20.6 billion).