Brasil Telecom undertakes not to compete with pay TV

Yon Moreira, vice president of Brasil Telecom, attended ABTA 2002 Thursday, October 17, to reaffirm the ILEC?s promise not to compete with pay-TV operators. BrT?s announcement two days previously that it was preparing to launch a video-over-ADSL service had fueled concern in the pay-TV industry, but according to Yon Moreira the service will be limited to offering pay-TV distributors use of the telco?s network. He said BrT recognizes it isn?t licensed to provide pay television in any shape or form, and is pursuing partnerships in the segment. A letter delivered to ABTA had this to add: ?Brasil Telecom offers ABTA and its members this new opportunity to establish winning partnerships in which the excellence of each partner will enable complementary services of high quality to be delivered to common customers?.

Set-top

In an address delivered at ABTA 2002, BrT?s director of Internet services Ildeu Borges explained operating details of the video-over ADSL service. The subscriber?s set-top connected to an ADSL modem receives a video stream in the MPEG2 format and converts it to TV pictures. A remote control handset is used for navigating, as with a conventional set-top. Some ABTA members with representatives in the audience felt the presentation suggested that the ILEC was preparing to offer a pay-TV service. They checked with Ara Apkar Minassian, Anatel?s head of mass communication services (SCM), who was also present at the session. Mr Minassian at once turned to Ildeu Borges and said, ?Remember Anatel?s instructions on compliance with the SCM rules. We?ll be watching closely.? The rules prohibit SCM licensees from offering a ?continuous TV service?.

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