Telefonica to launch free Internet portal this month

Telefonica is to launch its free Internet portal and ISP for São Paulo State, i-Telefonica, by the end of June, following a successful trial period in the city of São Carlos. The decision results from a dispute over traffic sinks with Telemar, which operates a free Internet service called iG.
A source inside Telefonica says the incumbent local company for São Paulo tried in vain to reach agreement with Telemar on the traffic generated by iG in the state.
Based on the results in São Carlos, where i-Telefonica won a market share of more than 50%, the decision was taken to extend the service to the rest of São Paulo State. The source acknowledges that Terra, a paying service also controlled by Telefonica, will be affected. But the impact won?t be significant judging by the São Carlos trial.

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