Brazil telecoms gearing for a battle

Brazil’s telecoms companies are hunkering down in anticipation of a protracted fight for dominance as Voice over Internet Protocol (VoIP) services arrive.

Empresa Brasileira de Telecomun-icaes (Embratel), the country’s privatised long-distance telephony service provider, will now offer VoIP services using the infrastructure of Brazil’s leading cable television operator, NET Servios.

Embratel entered the Brazilian local calling market in 2003 with the acquisition of Vsper from Qualcomm. This acquisition also allowed Embratel to offer broadband services.

The partnership between Embratel and NET will also allow for the launch of a treble play offering for the country’s residential market. Treble play is an integrated voice, broadband, and video offering that is delivered through a single network infrastructure. The services in this offering will be billed jointly by the companies.

Embratel will not only get to use and benefit from NET’s network, it will also give it access to NET’s 1.3 million subscriber base as well as it distribution channels.

Embratel and NET is hoping that they would be able to lure local clients away from Brazil’s fixed-line service providers while also boosting client loyalty to its long-distance service. But the fixed-line phone companies are also preparing itself for this impending competition.

Tele Norte Leste Participaes, Brazils largest local telephony provider, has also announced that it will work with Net2Phone, the US-based VoIP enabler for telecoms companies, to offer residential broadband telephony throughout the country.

It is expected that prices for voice connections in Brazil will fall significantly because of this impending competition.