A sale of operator Oi’s mobile assets to the Brazilian units of America Movil, Telefonica and Telecom Italia was approved by the country’s competition regulator with conditions, despite calls earlier this week for the deal to be blocked.

Approving the sale Cade, Brazil’s competition authority, noted although the deal meant a reduction in the number of providers, there would be wider negative impacts should the sale be scrapped and Oi subsequently became insolvent.

Oi is currently in bankruptcy protection. Cade noted if the operator goes bust, it would impact the fixed, broadband, data communication services markets and various other industries using its infrastructure.

Cade’s approval is contingent on the buyers meeting a series of conditions, which include the divestment by public offering of around half of the base stations acquired; commitments for wholesale access to be given to MVNOs including 5G and IoT suitable frequencies; and potential deals to industrial players in each of the country’s municipalities.

The deal for the purchase and division of debt-laden Oi’s mobile assets was struck in December 2020 following an auction.

Telecoms regulator Anatel already cleared the arrangement with its own conditions.