Net Brasil, which negotiates and licenses programming for Net Foz do Iguaçu, is pursuing ways of punishing the independent cable distributor for holding video-over-ADSL trials with Brasil Telecom, one of the three incumbent local exchange carriers. In October 2002, when Brasil Telecom named partners for the trials, Net Brasil warned the distributor in Foz do Iguaçu (Paraná), near the borders with Paraguay and Argentina, that its status as a franchisee meant it was contractually debarred from participating. The other partners named by Brasil Telecom at the time included ViacaboTV (Adelphia) in Itajaí. Net Brasil recently learned that Net Foz do Iguaçu was about to restart the trials.
Also in October 2002 ABTA, the industry association for pay-TV operators, announced its opposition to video service offerings via ADSL similar to pay TV, especially in cities already covered by cable or MMDS.
Management of Net Foz do Iguaçu had not responded to our requests for comment at the time of writing.