Brazil to cut tax to woo new telecoms investment

* Brazil suspends two taxes for four years

* Aims to provide incentive for investment in fiber optic

BRASILIA Aug 30 (Reuters) - Brazil hopes to attract 70 billion reais ($44 billion) in investment in its telecoms sector in the next four years for the construction of fiber optic cable networks by exempting companies building them from certain taxes, the communications minister said on Tuesday.

The government would forfeit an estimated 4 billion in tax through the measure, the minister, Paulo Bernardo, said.

President Dilma Rousseff has to decide whether to send the proposal to Congress or implement it immediately with a decree that would still require legislators' approval at a later date.

The Communications Ministry will register companies seeking to obtain the reduction and only approve those willing to construct fiber optic cable networks in remote areas where existing communications networks are minimal.

Brazil plants to extend availability of high-speed Internet across Latin America's largest economy through a National Broadband Plan that would charge about 35 reais per month for a 1 megabyte-per-second connection.

Brazil's largest telecom group, Oi TNLP4.SA, and Telesp TLPP4.SA, CTBC and Sercomtel will participate in the broadband plan, Bernardo said in June. (Reporting by Isabel Versiani; Writing by Peter Murphy; Editing by Gary Hill)