GVT will invest US$ 1.18 billion in three years in São Paulo
Folha de S. Paulo
GVT will invest R$ 2 billion (US$ 1.18 billion) over the next three years to compete in the market for telephony, broadband and Pay-TV in São Paulo. "São Paulo is the best place where GVT could enter. We have a very positive expectation", said Amos Genish, president of the company. GVT, which will enter the market dominated by Net and Telefônica, studies to provide internet with speed of 35 Mbps (Megabits per second) for less than R$ 100 (US$ 58.8).
Packages of 15 Mbps will cost R$ 79.99 (US$ 47.1). The company's services, now available only for the corporate environment, will be sold to households of the capital of São Paulo in the second half of 2011.
The launching date depends on permits of the municipal administration of São Paulo and works of GVT, says Genish. Next week, the company will pre-launching in Santo André and São Bernardo. In São Paulo, GVT serves Campinas, Sorocaba, Osasco, Guarulhos, among others. "We think it is better to start with smaller markets, even so we can adjust our value proposition to São Paulo," said Genish.
The president of GVT said that Vivendi, which bought the control of the company for R$ 7.8 billion (US$ 4.6 billion), helps the company to "think big". "They helped us get into the business of Pay-TV and think beyond telecommunications", says the Israeli Genish.
The package of Pay-TV of the company, according to the executive, will have tools for interactivity and high speed Internet access. In 2010, CVM (Brazilian Securities and Exchange Commission) accepted the offer of R$ 150 million (US$ 88.2 million) from the French Vivendi, to end the process about irregularities in the transaction. The value, however, is not significant for Genish. "Nothing changes for us. Vivendi earned R$ 4 billion (US$ 2.4 billion) with our growth last year."