Embratel hurt by court decision on tariff increase

Last week?s provisional ruling by the Federal High Court (STJ) suspending the tariff increase granted by Anatel and determining it be linked to the IPCA index instead of the IGP-DI means financial difficulties for telcos that pay large amounts of interconnect rates such as Embratel, the incumbent long-distance carrier.
This is because the court stipulated a higher increase for interconnect rates than for the cost of long-distance calls to users. The result will be financial disequilibrium for long-distance carriers, say sources consulted by TELETIME News.
The court set an increase of 14.28% for the cost of a domestic call and 6.04% for international calls, while the interconnect rates Embratel will have to pay local carriers to terminate calls remain indexed to the IGP-DI.

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