--Brazil telecommunications regulator tells TIM to suspend new
calling plan
--Anatel says calling plan could lead to network problems,
quality-of-service issues
--TIM rejects Anatel's allegations, says network can handle call
volumes
(Adds statement from TIM, starting in fourth paragraph.)
By Matthew Cowley
SAO PAULO--Brazil's telecommunications regulator, Anatel, on
Friday said it has suspended a new mobile-phone calling plan
launched earlier this week by TIM Participacoes SA (TIMP3.BR),
saying it could hurt quality of service.
On Monday, mobile-phone operator TIM, a unit of Telecom Italia
SpA (TIT.MI, TI), launched a calling plan called Infinity Day,
under which customers pay 0.50 reais ($0.24) for unlimited local
calls and a further BRL0.50 for unlimited long-distance calls to
other TIM customers.
Anatel said there was "potential instability in the network" and
potential "damage to the quality of service" for all of TIM's users
as a result of the Infinity Day promotion.
TIM said in a statement that its investment plan presented to
Anatel in August--as part of a previous effort by the regulator to
improve quality of service at all mobile-phone operators--already
included the Infinity Day proposal.
The firm rejected the suggestion that the network would be
affected, and said network capacity is 30% higher than it expected
as a result of the new calling plan. It said it tested the impact
of the calling plan in the southern state of Rio Grande do Sul
without any problems.
TIM said its rivals have launched "more aggressive" promotions
and haven't been challenged by Anatel.
Anatel has given TIM 30 days to present a proposal that will
demonstrate that the firm's network is capable of handling the
volume of calls.
If it doesn't stop selling the plan, TIM faces a fine of
BRL200,000 a day, Anatel said.
Write to Matthew Cowley at matthew.cowley@dowjones.com
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