Brazil’s TIM and Vivo to Share 2G, 3G and 4G Mobile Networks in 2,700 Cities

RIO DE JANEIRO, BRAZIL – Operators TIM and Vivo signed agreements to share 2G, 3G and 4G networks this week. The deal is the result of negotiations announced in July, which provided the unification of the 2G network nationwide and share the 4G coverage in small municipalities.

The final agreement provides for a unique network in 2G technology in 2,700 cities.

Operators will disable overlapping antennas, allowing a reduction in network maintenance costs and release of spectrum for use in the latest technologies, such as 3G and 4G.

In cities where only one operator is present with 2G, the competitor will be attended by the same infrastructure.

Each company keeps its own operation, commercial independence, and client management, although sharing the same infrastructure.

The sharing of 3G and 4G technology will be restricted to cities with less than 30,000 inhabitants. Originally the memorandum of understanding released in July had not provided the use of 3G technology.

For such technologies, the single network will reach 800 cities, with the potential to expand to more than 1,600 cities. TIM and Vivo will each cover 400 new cities.

Fifty cities will initially be covered by this model, with Vivo maintaining the signal in 25 cities and TIM in the remaining 25.

The project should release a balance in 180 days and the contracts still require regulatory and anti-trust approval by ANATEL and the Administrative Council for Economic Defense (CADE).

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