Brazilian telco Oi to invest $1.7bn-$2.3bn in 2010

www.WirelessFederation.com/news: An investment of 3 billion to 4 billion Brazilian reals ($1.7 billion to $2.3 billion) in 2010 has been considered by Brazil’s largest telecommunications company, Tele Norte Leste Participacoes S/A. The focus of the investment is on expanding broadband Internet capacity for fixed and mobile networks.

BRL5.1 billion was invested by the operator in 2009 and 70% of that amount was pumped into networks. The investment will also allow the company to reduce debt levels. The company’s debt level rose to 2.2 times earnings before interest, tax, depreciation and amortization, or EBITDA, in 2009 following the purchase of Brasil Telecom, a rival operator, and the campaign to enter into the Sao Paulo mobile market.

The aim of the company is to reduce that debt amount to 1.7 times to 1.9 times EBITDA by the end of this year. There are probabilities that the Sao Paulo mobile operation reach break-even in April of this year, which will take some pressure off finances.