Brazil’s postal service to enter wireless market?

Brazil’s postal service to enter wireless market?

Brazil’s postal service, Correios, is reportedly planning to enter the country’s wireless market as an MVNO in a bid to take advantage of its presence in almost every Brazilian municipality.

Local newspaper O Valor Economico reports that Correios plans to sell SIM cards by the second half of 2013 and may begin selling phone plans and buying airtime from existing operators.

"We've identified an opportunity to leverage the business potential of our service and distribution network," Antonio Luiz Fuschino, VP for technology and infrastructure at Correios, told the publication.

Although the arrival of the postal service will increase competition in Brazil’s already crowded wireless market it could also prove to be a boon for the operator selected to provide services.

Correios will have a choice of Telefónica’s Vivo, Telecom Italia’s TIM Participacoes, America Movil’s Claro and the Oi Group as its partner.

Of these Vivo had the share on Brazil’s 255 million mobile subscribers in March 2012, with 29.3%, compared to TIM’s 26.4%, Claro’s 24.2% and Oi’s 18.2%, according to research firm TeleGeography.

The postal service will reportedly hire consultants in the next few days to provide a more detailed business plan.