November 16, 2012 / 12:15 PM / 5 years ago

Brazil's TIM faces new regulatory scrutiny over service quality

* Regulator suspends sale of TIM’s flat-rate plan

* TIM had sales temporarily banned in 19 states in July

RIO DE JANEIRO, Nov 16 (Reuters) - Brazil telecom regulator Anatel on Friday ordered TIM Participacoes, the nation’s No. 2 wireless carrier, to stop selling a flat-rate promotion plan with unlimited calls per day because of concerns about service quality.

It was the latest in a series of regulatory setbacks for the Brazilian unit of Telecom Italia. In July, Anatel banned TIM’s sales in 19 states for nearly two weeks until the company presented an investment plan to improve service.

TIM started selling its “Infinity Day” promotion on Monday, allowing customers to make unlimited phone calls within the carrier’s network for a flat rate of 0.50 real ($0.24) a day.

The plan could bring “potential instability” to the company’s network and “hurt the quality of service for all TIM customers,” Anatel said in a decision published on Brazil’s official gazette.

TIM was not immediately available to comment on the regulator’s decision. The company intended to sell the plan to prepaid customers on a promotional basis until Jan. 15.

TIM has 30 days to provide Anatel with a study on the impact of the plan on its network and to make the necessary adjustments to ensure its service meets the agency’s quality standards.

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