Claro Digital (merged with BCP SA (Claro))

active

Telet SA was awarded a 15-year concession to provide cellular phone services through the B band in area 6 in April 1998. Area 6 comprised the state of Rio Grande do Sul. The Brazilian telecommunications market was divided in 10 areas in 1996 in order to assign licenses for cellular phone services. In each area, the B band was assigned to a private consortium through a competitive bidding and the A band was assigned to the state owned company that provided local fixed phone services in the concession area. Companhia Riograndese de Telecomunicacoes and Tele Celular Sul, the state-owned competitors of the company, were privatized in 1996 and 1998, respectively. Telet SA won its license through a competitive bidding when it offered US$ 290 million (R$334.5 million) for the license in April 1997. Telet is a consortium led by Bell Canada International (16.33%) and Telesystem International Wireless (16.33%) and integrated by a group of thirteen Brazilian pension funds and financial institutions (41.64%), and the Brazilian Development Bank-BNDESPAR (18.3%). The concession contract was signed in April 1998 when the consortium paid 40% of their offering. The 60% remaining has to be paid in three equal installments during the first three years of the concession contract. The company launched its commercial services under the trade name Claro Digital in February 1999. Telet network covered over 110 cities, representing more then 75% of Rio Grande do Sul's population. In October of 2001 the consortium, through its subsidiary, BCI, acquired 51% stake in cell phone carriers Americel and Telet for US$ 315 million. After the transaction BCI was holding more than 80% of the voting capital of Telet. BCI was controlled by Bell Canada International (80%) and Telecom Americas (20%), which, in turn, was controlled by America Movil, SBC International and Bell Canada International. During 2002, America Movil became the controller of Telecom America (96%), by acquiring the stakes of SBC International and Bell Canada International what increased its stake in BCI to 20%. By the end of 2002, BCI was holding directly and indirectly 100% of the voting capital of Telet. BCI, in its turn, was controlled by Bell Canada International (80%) and Telecom Americas, a subsidiary of America Movil (20%). In 2003, Telecom Americas became the controller of Telet (100% of the voting capital), by acquiring Bell Canada International's controlling stake in BCI. In the same year, Americel and all the mobile operations of Telecom Americas started using the brand name "Claro". The other shareholder is BNDESPar, the investment wing of the Brazilian Development Bank, holding 100% of the preferred or non-voting shares of Telet. Since August 2003, Claro Digital and all mobile operations of Telecom Americas in Brazil are operating under the brand name "Claro". America Movil has grouped it's Brazilian operating companies (ATL, Tess, BCP, BSE, Claro Digital, and Americel) under this group. From 2004 all information is recorded under BCP (Claro). None None