Long distance
WorldCom and Embratel: concerns about ?military dimension?
quinta-feira, 04 de julho de 2002 , 16h38 | POR REDAÇÃO

Analysts are speculating whether there might not be another reason for concern about Embratel?s future aside from the restrictions on ownership changes in the General Telecoms Act. There could be a ?military dimension?, in the words of one market watcher, because Embratel owns and operates the Brasilsat network and has many other operating agreements or partnerships involving satellites, some with links to national defense. Looking at financials alone, Embratel?s second-quarter results are expected to show an improvement. It seems to have succeeded in collecting from residential users of long-distance telephone services and is reportedly building revenue in the corporate segment. Nevertheless, its stock-market performance is unlikely to benefit given the combined effects of currency depreciation on its dollar debts and of WorldCom?s collapse.


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