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Italian operator says it is not holding discussions with Oi after newswire report to the contrary.
Telecom Italia on Friday once again denied that it is holding talks with Brazil’s Oi, as rumours continue to swirl over the telco’s future in the country.
"There are no contacts, neither formal nor informal, with Oi," Telecom Italia said, in a statement emailed to Total Telecom.
The clarification came after Reuters cited unnamed sources as saying that Telecom Italia has started talks with Oi over a possible merger with the former’s TIM Brasil unit, focusing initially on governance issues and possible regulatory changes in Brazil that could make consolidation possible.
The newswire later published a follow-up piece with a denial from Telecom Italia.
Telecom Italia’s presence in Brazil has been the subject of debate for a number of years, especially since Telefonica’s acquisition of broadband operator GVT, which left TIM as the only mobile operator in the market without a fixed-line presence.
Developments took a significant turn in late October when Oi agreed to hold exclusive talks with investment group Letter One about the possibility of merging with TIM.
TIM insists it has played no part in those talks, but the exclusivity period between Oi and Letter One is set for seven months from 23 October, so there is still plenty of time for things to change.
TIM is the second largest mobile operator in Brazil, with 71.9 million customers and a market share of 26.3% at the end of October, according to regulator Anatel.
Oi is the smallest of Brazil’s big four, claiming a market share just shy of 18% at the same date, but it also serves 25.1% of the fixed broadband market.
