Brazil’s third-largest mobile operator Claro has asked the country’s securities regulator CVM for permission to become a publicly listed company – a step towards merging with two other America Movil-owned companies in the country.

The application, which was reported by Reuters, was required by telecoms industry regulator Anatel following its approval last week of Claro’s plan to merge with cable television operator Net Servicos de Cominicacao and long-distance fixed telephone company Embratel.

Claro needs to open up to other investors under Brazilian telecoms rules that require licence holders, or their controlling companies, to have an open capital structure.

However, being publicly listed is not the same as Claro having to stage an IPO.

Claro had 68.8 million connections at the end of the second quarter, according to GSMA Intelligence figures. Market leader Vivo, which is owned by Telefonica, had 79.4 million connections, while Telecom Italia’s TIM had 74.2 million connections.

And Brazil is a significant market for America Movil. The country represented 26 per cent of America Movil’s wireless subscribers at end-Q2, following a 3.5 per cent year-on-year increase in subscriber volume.