The Administrative Economic Defence Council has granted an injunction against TELESP (Telecomunicações de São Paulo), a local switched fixed telephone service concessionaire. The injunction was requested by EMBRATEL, a Brazilian domestic and international long-distance telephone service concessionaire, on the basis of alleged discriminatory pricing for the provision of local EILD (industrial exploitation of dedicated lines) services.

The council ruled that requests for the supply of such services must be treated equally with regard to pricing and conditions of supply. It found an unjustifiable difference between the conditions offered by TELESP to its subsidiary Telefônica Empresas and EMBRATEL.

Pending the final outcome of the case, on February 27 2003 the council ordered TELESP to:

  • charge its competitors and subsidiary the same prices for the provision of low-speed local EILD services in the state of São Paulo;
  • reveal the prices charged for such services in its original contracts with its subsidiary and third parties; and
  • submit all contracts entered into with TELESP and third parties (including its subsidiary) as of February 27 2003 for such services.

TELESP faces a daily fine of R6,384 if these obligations are not met.

For further information on this topic please contact Ricardo Barretto or Fernanda Bottura Casella at Barretto Ferreira, Kujawski, Brancher e Gonçalves – Sociedade de Advogados by telephone (+55 11 3066 5999) or by fax (+55 11 3167 4735) or by email ([email protected] or [email protected]).