Brazil might revive former telecom monopoly-report

SAO PAULO Aug 10 (Reuters) - Brazil's government may revive the former telecommunications industry monopoly, which was sold to private investors in the late 1990s, to provide the government with free access to the Internet, daily newspaper Valor Economico said on Monday.

Part of the Telebras system, as the former monopoly is known in Brazil, still exists to honor millions of dollars in labor-related liabilities. But recent glitches in the local broadband network of Telefonica (TEF.MC) have revived discussion on resuscitating Telebras.

Under the plan, which is opposed by Chief of Staff Dilma Rousseff and Communications Minister Helio Costa, Telebras would manage the broadband network owned by state oil-controlled company Petrobras (PETR4.SA) and state power utility Eletrobras (ELET6.SA) linking the cities of Sao Paulo, Rio de Janeiro, Belo Horizonte and Brasilia, Valor said.

The government would use the network to create its own intranet service and fend off glitches in privately-owned Internet bands, Valor said. The Planning Ministry estimates cost savings of 150 million reais ($82 million) a year if the project is implemented, Valor said.

Calls made to representatives in the communications and planning ministries in Brasilia seeking comment weren't immediately returned. (Reporting by Guillermo Parra-Bernal; Editing by Padraic Cassidy)