Brasil Telecom S.A.
Brasil telecom in June of 2001 is one of the three, wireline concessions resulting from the privatization of the national Brazilian telecom giant Telebras. The company is currently debating whether to expand infrastructure in-line with regulatory requirements or expand even faster in order to be allowed to provide both wireline and wireless services in the other two telecommunications regions in Brazil. The problem, however, is that its two controlling owners, Opportunity and Telecom Italia, are in the midst of a significant battle for control of the company.
The case is useful for obtaining a basic understanding of telecom sectors and their privatization. The ownership structure and resulting battle for the control of the company can be used for the foundations of discussions regarding corporate governance and minority ownership's rights.