Partnership between Algar and TIM brings the creation of a virtual operator in the country

A technology is constantly evolving. There is always something new, a different discovery, or even a revolutionary creation. Here in Brazil, the news of the moment is the emergence of a new virtual operator. Algar, an operator known for operating in the Minas Gerais triangle region, entered into an agreement with TIM to become an authorized MVNO, and thus distribute its mobile services across the country. In addition to the Minas Gerais triangle, Algar operates in São Paulo, Goiás and Mato Grosso do Sul.

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After the purchase of Oi Móvel, Anatel submitted Claro, TIM and Vivo to create wholesale reference public offers (WORPA), with the aim of producing virtual mobile operators. The agency also forced companies to provide a public price for national roaming.

This agreement with Algar was signed three days after Anatel's approval of TIM's MVNO offer. According to Mario Girasole, vice president of regulatory affairs for the Italian operator, the contract was based on the new mandatory wholesale offer. The commercialization of these services by Algar's new MVNO has not yet been authorized, as Anatel needs to grant regulatory approvals and grant the new operator.

Algar, despite being unknown to most Brazilians outside the 4 states where it operates, has presence in 16 Brazilian states working with companies, offering data, voice and YOU. Regardless of having its own national mobile network, Algar sold Internet of Things data packages throughout the country, using the networks of other operators. This internet, which managed to connect to Claro, Oi, TIM and Vivo towers, was the subject of questions from operators about its legalization, considering that Anatel prohibits permanent roaming.

In the statement issued to the press, the operators TIM and Algar did not make it clear what the business purpose of the new virtual operation is. Algar was already accredited as an MVNO and also operated under Surf Telecom, but it never sold its services to individuals outside its networked areas.

Without Oi Móvel being part of the market, a gap opens up for Algar to try to make viable and sell cellular plans to individuals. It remains to be seen what limitations an MVNO has to offer aggressive plans. TIM charges BRL 0.0044 per megabyte transferred, which may decrease to BRL 0.00253, depending on the accumulated amount of data or revenue commitment.

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