Telemar is about to start delivering international telephone service in its 16-state concession area, using the long-distance license awarded to PCS arm Oi. According to CEO José Fernandes Pauletti, Telemar has no intention of joining Intelig?s price war in the international segment. Long-distance calls to other countries will initially account for about 1% of net revenue, he forecasts. ?This service is strategic for Telemar. Its importance isn?t financial,? he says.
Telemar doesn?t know when it will begin offering domestic long-distance service to all regions for customers located in Region 1. José Fernandes Pauletti says the decision depends not just on a license from Anatel but on the litigation with Embratel. The incumbent long-distance carrier, a subsidiary of WorldCom, has taken out an injunction to prevent the LECs from offering domestic long-distance service until they agree on interconnect rates. ?The Americans are vocal advocates of competition, but only when it applies to others,? he jokes. There?s no prospect of offering long-distance service to customers in Regions 2 and 3, which aren?t part of Telemar?s concession area. ?Our priority is to get the service up and running in the 16 states we cover as the incumbent local exchange carrier,? he says.