Brazil official urges Vivendi restrictions-report

SAO PAULO Nov 18 (Reuters) - Brazilian regulators should have imposed restrictions on the purchase of local telecom company GVT GVTT3.SA by French media group Vivendi (VIV.PA), O Estado de S. Paulo newspaper said, citing Telecommunications Minister Helio Costa.

Vivendi gained control of GVT on Friday with a surprise $2.4 billion purchase of a controlling stake, trumping Spain's Telefonica to gain a foothold in Latin America's biggest market. Telefonica (TEF.MC) controls fixed-line telephony in Sao Paulo, the wealthiest state in Brazil, and offers broadband and other telecom services.

Costa said that any takeover in the industry must demand "equal terms" for suitors, unless technical arguments recommend otherwise, Estado said.

The deal still must be analyzed by antitrust agency Cade, Estado reported. A spokeswoman for Cade told Reuters there was no deadline yet for a decision on the deal.

Telecom watchdog Anatel had ruled on Thursday that Telefonica could proceed with a takeover under a series of restrictions such as keeping GVT's financial operations and brand separate for five years. Vivendi faced no regulatory hurdles because it doesn't have operations in Brazil.

That Vivendi is not in Brazil "makes no difference to me, I think anyone coming to Brazil has to observe basic requirements," Estado quoted Costa as saying.

He did not elaborate on those requirements.

Yet Costa said Vivendi's foray into Brazil would be beneficial for consumers, the daily added.

The entry of a new player in the sector has long been seen as a welcome opportunity to break the near-stranglehold on broadband in Sao Paulo held by Telefonica's Telesp TLPP4.SA unit and rival cable company Net Servicos de Comunicacao (NETC4.SA). Telesp subscribers suffered five service blackouts or similar incidents between July 2008 and June of this year. (Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn)