June 3 (Bloomberg) -- Brazil’s planned telecommunications rate cuts designed to help stimulate economic growth will reduce companies’ revenue, Communications Minister Paulo Bernardo told O Globo newspaper.
Under new rules to take effect in September, more calls will be charged at local, rather than long-distance, rates, which will cut annual revenue to companies by 300 million reais ($147 million), Bernardo said in an interview with the Rio de Janeiro-based daily.
Companies also will have to lease excess network capacity to other operators as a way to heighten competition, Bernardo said.
To contact the reporter on this story: Raymond Colitt in Brasilia Newsroom at firstname.lastname@example.org.
To contact the editor responsible for this story: Joshua Goodman at email@example.com.