Telecom crisis
Capex of 10 billion reals not generating return for LECs
quarta-feira, 12 de junho de 2002 , 00h49 | POR REDAÇÃO

Together the three LECs, Brasil Telecom, Telefonica and Telemar, have installed 10 million fixed lines that aren?t in service. In other words, they?ve sunk 10 billion reals of capital in investments that aren?t generating any return, said Telemar CEO Ronaldo Iabrudi at the 44th Painel Telebrasil in Natal, Rio Grande do Norte. To that must be added 2bn reals in provisions for bad debt this year alone, Mr Iabrudi said. The idle lines account for 15% of the LECs? aggregate network capacity including technical reserves ? 20% excluding reserves. Mr Iabrudi said capacity utilization can be boosted by implementing more rational customer management procedures, promoting cut-price service plans, easing regulatory requirements on universal access and quality, and allowing more freedom to raise tariffs so that they ensure a return on assets and encourage new investments.


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