Court suspends Telefonica's domestic long-distance license

Judge Luciana da Costa Aguiar Alves of the 15th Civil Court in São Paulo awarded an injunction to Embratel Friday, July 5, suspending Anatel?s authorization for Telefonica to start delivering domestic long-distance service out of its concession area in São Paulo State. The service went live on July 3. In her ruling, the judge said the articles of the General Telecommunications Act providing for such authorization are unconstitutional. All telecommunications services must be licensed by competitive bidding, she said. Anatel declined to comment until notice of the court ruling is formally served. Anatel is also awaiting a decision on its application, filed June 4, to discharge another injunction awarded earlier to Embratel against Telefonica. The application was filed directly with Judge Márcio José de Moraes, president of the Federal Regional Court of the Third Region. No date has been set for a decision.


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