Regulator suspends sales by three phone operators

In response to a tsunami of consumer complaints, the Brazilian communications regulatory agency, Anatel, has ordered the suspension of all sales (phone lines, chips and internet) by three operators in various states as of next Monday (July 23). TIM had its sales suspended in 18 states and the DF; Claro will not be able to sell products in three states; and Oi will prohibited from selling anything in five states. Under the terms of the order, at least one operator will have its operations suspended in each of the country’s 26 states and the DF. Operators who do not obey the suspension order can be fined R$200,000 per day. In order to have the suspension lifted the operators have 30 days to present an investment plan focused on increased operational reliability and a reduction of service interruptions. 

The decision is unprecedented and the president of Anatel, João Rezende, admitted as much when he declared: “Although this is an extreme measure, it is an important step in getting the sector house in order. We want operators to pay special attention to network quality.” Rezende pointed out that Anatel believes that any increase in clients should be accompanied by an increase in quality.

Claro operations will be suspended in Santa Catarina, São Paulo and Sergipe. Oi will be suspended in Amapá, Amazonas, Mato Grosso do Sul, Roraima and Rio Grande do Sul. TIM in Acre, Alagoas, Bahia, Ceará, Distrito Federal, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Pará, Paraíba, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rondônia and Tocantins.

Brazil’s other telecommunications sector operators, Vivo, Sercomtel and CTBC, have been ordered to present investment plans as well. If they do not do so, they will be punished by Anatel with services suspensions.

It is expected that Oi, Claro and Tim will appeal the suspensions to the Anatel board of directors today.