Eletronet will be the last major network available

Eletronet is now the only major telecommunications network with nationwide coverage in search of a buyer. If Brasil Telecom succeeds in its bid for Intelig following approval for the onset of negotiations at the August 21 meeting of shareholders in Solpart, BrT?s parent company, it will presumably end up controlling both the competitive long-distance carrier as well as MetroRED. Eletronet is too similar to Intelig to interest BrT, while Telemar already controls Pégasus. Telefonica hasn?t yet signaled its intentions in this area but there is no evidence it will want to acquire Eletronet, which belongs to AES. Despite AES?s strategic repositioning to include investment in telecoms, Eletronet will probably remain as it is. As one of the largest long-distance networks in Brazil, Eletronet has opted to focus on being a carrier of carriers. It doesn?t have a portfolio of corporate customers, nor does it compete with the carriers it serves, such as Intelig and AT&T, among others.

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