Brazil’s Anatel Orders Tim to Suspend Infinity Day Promotion

Brazil’s telecommunication regulator Anatel ordered Tim Participacoes SA (TIT) to suspend its Infinity Day Promotion because of concerns over its quality of service.

The Infinity Day Promotion consists of unlimited calls at a fixed price for 24 hours between telephones operated by Tim. The company said it disagrees with Anatel decision as there is no evidence of “any potential of network instability,” according to an e-mailed statement.

Tim executives “are ready for a clarification meeting with Anatel in Brasilia,” the company said in the statement. Shares fell 3.7 percent to 7.72 reais in Sao Paulo, the second-worst performer among members of the benchmark Bovespa index.

Brazilian regulators have increased pressure on telecommunications providers to improve service and drive down costs in the world’s second largest emerging market. In July, Anatel banned Tim, Oi SA (OIBR4) and America Movil SAB (AMXL), owner of Claro, from selling new mobile voice and data service because of network failures. The three companies later resumed sales after promising to reduce dropped calls and improve customer service.

Regulators are considering proposals to reduce so-called interconnection fees, lower taxes and make companies share infrastructure to aid carriers with smaller stakes in the market. Officials are also preparing regulations to require land-line, wireless and cable companies to share infrastructure.

Phone operators in Brazil may cut fees to accept incoming calls from rivals to as low as 10 centavos per minute from current levels of 48 centavos per minute, Communications Minister Paulo Bernardo said earlier this month.

To contact the reporters on this story: Matthew Malinowski in Santiago at mmalinowski@bloomberg.net; Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

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