According to seasoned observers, amending the Cable Act to facilitate foreign investment in the sector is increasingly important for Net. The Globo group is clearly aiming to reduce its proportional ownership of Net. The other major Brazilian shareholders, BNDES and Bradespar, are interested only from the financial standpoint. There?s a bill before Congress proposing to amend Article 7 of the Act, which restricts foreign ownership of cable companies to 49%. The bill is currently stuck in the Senate, where Sen. Gerson Camata (PMDB, Espírito Santo) is the rapporteur. Anatel isn?t pressing for fast-track passage of this measure because it wants to see a more comprehensive overhaul of the legislation, integrating the Cable Act with the General Telecommunications Act. Some experts say the best solution would be to start all over again, submitting a broader bill to the lower house. Timing is the main problem, with Congress on vacation until August and general elections in October, followed by a presidential succession.
Foreign ownership
