en.Wedoany.com Reported - Brazil's National Telecommunications Agency (Anatel) has approved Claro's acquisition of Desktop, stating clearly that the transaction will not harm market competition. José Borges, Anatel's Competition Supervision Director, noted at the Teletime Tec event organized by TELETIME in São Paulo on Thursday (11th) that although both companies are significant players in the broadband market, the deal will not prevent competitors from entering, and consumers will still have other options in cities where these companies operate after the merger.
This decision marks a new tone for Anatel, which has begun to view consolidation as a necessary process for market maturation. Borges stated that from a regulator's perspective, the number of participants is a valuable asset, and when consolidation occurs, it is necessary to observe market stability, the functioning of mechanisms, and whether user choices are preserved. He emphasized that as long as the market remains open and participants can still compete within the competitive structure, Anatel will maintain the same stance in similar transactions.
Anatel is also concerned about network sustainability, including the ability of various groups to invest and maintain revenue levels commensurate with investment needs. Borges mentioned that difficulties in price adjustments and increased network pressure from applications requiring higher upload capacity provide reasons for launching the third public consultation on the relationship between the telecommunications industry and large technology companies.
In the case of Claro and Desktop, Anatel's position reflects a new paradigm of understanding. Claro leads the broadband market with approximately 10.76 million subscribers, of which 4.58 million are in São Paulo; Desktop operates in about 200 cities in the interior and coastal areas of São Paulo, with 1.2 million customers. After the transaction, Claro will have nearly 12 million access users in Brazil and will lead the São Paulo market ahead of Vivo.
Borges emphasized that merger decisions are not limited to the Herfindahl-Hirschman Index (HHI). Preliminary analysis indicated that the transaction could lead to a regression in competition levels in the state of São Paulo, but Anatel assesses whether local transmission network solutions and other providers exist, as well as the competitive maturity of each municipality. He pointed out that Anatel protects not companies but the competitive process; as long as the process is functioning, no issues are seen.
The supervision director also noted that with the regularization of smaller providers, Anatel has expanded its sources of information for merger decisions. He assessed that there is an oversupply of fiber optics in the market, and providers need to seek operational efficiency and network utilization. Borges stated that Anatel does not view the consolidation process negatively; on the contrary, it can strengthen regional providers, especially in a context of persistently high interest rates and difficulties in network utilization.
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