Foreign Investment and Consolidation in the Brazilian Mobile Telecommunications Market

Authors: Maciel M, Whalley Jason, van der Meer Robert

Management Science Working Paper No. 17 (2005)

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Abstract

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During the implementation of market-based reforms in mobile telecommunications, the Brazilian Government opted for dividing the country in ten regions, thus creating a highly fragmented market. Later on, through several mergers and acquisitions the market was consolidated by three main foreign groups. This paper analyses the rationale behind the Government?s decision to fragment the market and describes the events that led to consolidation. It identifies the different strategies adopted by the companies and the overall competitive landscape of the mobile market that emerged after the process of consolidation.