Abranet, the national association of Internet service providers (ISPs), is stepping up its war on the provision of free Internet access by incumbent local exchange carriers (ILECs). The association says it?s preparing to file a plea with CADE asking the competition tribunal to reach a decision as quickly as possible on whether Brasil Telecom is infringing antitrust law by offering free access through iBest. Brasil Telecom (BrT) is the ILEC for the South and Center-West. The case before the tribunal questions the legality of BrT?s interconnection agreement with iBest, a subsidiary of the BrT Group, and its sharing of revenue from telephone traffic. Telemar, the ILEC for 16 states in the North, Northeast and Southeast, had a similar arrangement with iG, a free ISP with virtually the same controlling shareholders. Abranet filed suit against this contract late last year but Telemar (through TNL Acesso) and iG recently terminated it by mutual agreement. Telemar has promised to sign agreements ?with equal and fair conditions for all providers?.
Abranet Chairman Roque Abdo says the fact that TNL Acesso and iG have terminated their agreement proves it was irregular. The General Telecommunications Act forbids ILECs from sharing revenue with entities of any kind except other fixed-line telcos. CADE must examine the case of BrT and iBest case fast, he insists, ?to see whether they?re operating under the same irregular conditions?. Abranet wants CADE to fine or even shut the offending operations down.
Antitrust reports
TELETIME News has learned that the Finance Ministry?s Economic Surveillance Department (SEAE), one of Brazil?s antitrust authorities, is about to publish a report on BrT?s acquisition of iBest, with roughly the same conclusions as those it reached on Telemar and iG. This report will be forwarded to CADE as an exhibit in its hearings on the case.
