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Algar Telecom Brazil states that the Price of MVNO should be regulated

LOGO ALGAR TELECOMAccording to an article published by Tele.Sintese, Algar Telecom Brazil who is interested in expanding its mobile coverage via a Mobile Virtual Network Operator (MVNO) deal, claims to have no illusions about the possibility of advancing this model. According to Osvaldo Carrijo, commercial director of retail Algar Telecom, the only chance for MVNOs to thrive is if there is wide regulations.

“If the price isn’t regulated, MVNOs will have no chance. For each customer number the price could be R$ 0.25 and/or R$ 0.18 plus R$ 1.50 to connect to another carrier, makes the model unfeasible” said Carrijo during debate at 34 Encontro Tele.Sintese, held in Sao Paulo on Tuesday (27).

Algar believes that the future supply of telecommunications takes place in the mobile universe. The opinion is shared by theBrazilian Association of Internet Providers (Abrint) which is committed to begin negotiations to offer its members a contract MVNO service. “We talked to Anatel, and initially companies were wary because of the high prices, but we are progressing with dialogues with some operators to see what is possible,” said Basilio Perez, president of Abrint.

If the future of telecommunications services is mobility, regional operators tend to increasingly rely on differentiation. Algar Telecom’s concern is that asymmetric regulation regarding roaming has not been defined by the Anatel.

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