GVT

History

Global Village Telecom was founded in April 1998 by a group of Israeli investors led by entrepreneur Joshua Levinberg, who previously founded Gilat Satellite Networks. Their idea was to build a satellite-based phone network for remote locations in South America using the VSAT technology that was developed by Gilat Satellite Networks. The initial investors in the company included: Magnum Technologies Fund, which held 55% of the company, US investment bank Merrill Lynch held 20%, Clal Information Technologies 10%, Discount Investment Corporation 10%, and Gilat Satellite Networks 5%.

During 1998 and 1999 GVT won tenders to build rural phone networks in Colombia, Chile and Peru.

Brazil Fixed-line Telecommunications Licence

In 1999 GVT was awarded a 20 years license to provide fixed-line telecommunications services in Brazil's south and central regions. As part of Brazil's government plan to introduce competition in three fixed-line regions of the country. When it privatized the state telecommunications company, Telebras, in 1998, the government divided Brazil into three regions for fixed-line telephony. Each region was to have one newcomer and an incumbent. In each case, the incumbent was a former unit of Telebras, which was privatized.

The region for which GVT won the license had a population of 38 million people at the time and encompasses nine states, including the country's capital, Brasilia. GVT plan was to invest US$550 million over three years and to build a network with 500,000 lines. GVT was to compete in the region against the former Telebras unit Tele Centro Sul, which was owned by a consortium led by Telecom Italia.