Strategic Implications of Alliances and Other Linkages of Leading Telecom Operators in Brazil: Network and International Perspectives

In response to competitive pressures created by privatization, telecom firms in developing countries are establishing alliances and other types of linkages—mergers and acquisitions—with foreign partners to ensure customer competitive advantages in global markets. However, there have been very few studies on the alliances of telecom operators in Brazil, an increasingly important BRIC. This article presents the results of research that aimed to fill this gap by identifying, from a network/international perspective, the opportunities/threats created by the relevant linkages of leading telecom operators in Brazil. The results suggest that acquisitions—and especially alliance-type linkages with foreign partners—have created opportunities for boosting performance, in keeping with their new strategic profile.