MTC to benefit from Portugal Telecom deal in Brazil

MTC’s strategic partner, Portugal Telecom, has announced its intention to merge with Oi, the largest Brazilian telecom operator. MTC said yesterday that the merge will lead to the expanding of MTC’s telecommunications horizons. MTC added that the new PT/OI combined company will be covering a population of 260 million and serve 100 million subscribers.

“The main objectives are achieving significant economies of scale, maximising operational efficiency and adding value to its stakeholders. MTC will benefit from an extended best practice sharing platform, economies of scale, leading edge technology and being a partner of a top 20 largest telecom companies in the world,” MTC said.

Portugal Telecom and Oi announced last week that they have signed a Memorandum of Understanding (MoU) to merge and create a company with projected synergies worth US$2,43 billion.

“This is exciting news for MTC who is already a strategic partner to Portugal Telecom, which is considered to be one of the best telecommunications operators in the world, especially when it comes to fibre technologies,” MTC said. The new company will be led by Zeinal Bava, former CEO of PT and current CEO of Oi and PT Portugal.

“MTC will be able to extract benefits from this merger and add value for its customers by extending further its best practice sharing platform, access to leading edge technology, increased economies of scale and by being partner of one of the top 20 largest telecom players in the world”, said Tim Ekandjo, Chief Human Capital & Corporate Affairs Officer of MTC. “

Portugal Telecom’s international footprint extends to Portugal, Brazil, Angola, Mozambique, Cape Verde, Kenya, Sao Tomé and Príncipe, Namibia and Timor. Portugal Telecom became a shareholder of MTC after acquiring a 34 percent stake, including a management contract.

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