Brazil’s Oi loses connectivity contract to Claro

Details: Vaughan O'Grady; Category: Operators; 03 November 2025; 14913 views

Problems continue to pile up for troubled Brazilian operator Oi, with news late last week that rival operator Claro is to take over a connectivity contract it formerly managed.

Late last week a Rio de Janeiro court confirmed that Claro was to assume the connectivity contract previously held by Oi for Brazil’s Integrated Centre for Air Defence and Air Traffic Control (Cindacta).

The decision came from the court that is overseeing Oi’s ongoing bankruptcy protection process. It noted that Claro possessed the necessary technology and operational reach to do the job, and, in fact, was already providing part of these services.

However, this is part of a wider downturn in fortunes for Oi. As the Brazil Stock Guide website points out, a September court order allowed public utility contracts held by Oi to be reassigned to third parties. The court cited Oi’s deteriorating liquidity and the risk of service interruption.

In the case of Cindacta Oi denied any operational threat. However, Cindacta is responsible for managing most of the country’s air traffic control data systems, so national security is involved. In fact, the judge in the case reportedly made a decision after discussions with representatives from Claro, Oi, regulator Anatel, the Brazilian Air Force (FAB), the Public Prosecutor’s Office, and the case’s judicial administrators.

So what happens next for Oi? The company has been under court-supervised reorganisation since 2023. A reported net loss of BRL$2.8 billion (US$522.6 million) in Q3 2025 is much bigger than the R$ 2.1 billion US$392 million) of a year earlier. Its net debt has apparently reached R$28.5 billion (US$5,319.2 million), while revenue has fallen 11% year over year, driven by a contraction in legacy fixed-line services.

Oi has been selling off many of its assets, including its mobile, fibre optic, tower and pay TV operations, and its stake in V. tal, which has left it with fewer resources from which to generate revenue. It’s not clear either whether its difficult financial situation will improve any time soon or simply deteriorate further.