CADE conditionally clears RAN sharing rollout agreement between TIM and Telefônica

The Administrative Council for Economic Defense (CADE) conditionally cleared the RAN sharing rollout agreement between TIM and Telefônica, involving 2G, 3G, and 4G mobile network technologies. The clearance of the transaction was contingent on the execution of a merger control agreement to mitigate competition concerns. 

The transaction consists of amendments aiming to expand the geographical scope in question, among others. Such expansion was motivated by both technical incompatibilities in the original implementation and operators' interest in including new municipalities in the agreements. 

During the merger review, CADE identified that the proposal raised competition issues regarding scope and lack of detailing. After negotiations led by Commissioner Diogo Thomson, rapporteur of the case, companies agreed to sign the document. 

Remedies 

The behavioural remedies include full transparency, with the publication of the complete list of municipalities involved; the guarantee of standards maintenance regarding coverage and quality of the 3G and 4G technologies (prohibition of retraction); and continuous monitoring by CADE, with the possibility of support by the National Telecommunications Agency (ANATEL). Mr Thomson highlighted the complexity of the transaction, which required coordinated action between CADE, ANATEL and other government bodies, emphasising the importance of this collaborative and transparent dynamic. “With this arrangement, a proportional and technically grounded solution is adopted: pro-competitive measures are approved, harmful measures are restricted, and implementation is conditional on compliance with objective guarantees and robust behavioural control.”, he stated.The Tribunal of CADE unanimously cleared the transaction. 

Access Case no. 08700.006506/2024-22