In many rich countries fixed-line broadband connections are now commonplace, often with a Wi-Fi link at the end of them to allow people to use their devices wherever they are in homes or offices.

Currently the company has 60.4 million traditional landlines - in contrast to 68.7 million subscribers in the second quarter of 2006 - and 71.4 million wireless subscribers.

The combined company would control about 70 percent of Brazil's fixed-line market, 18.5 percent of the wireless market and some 40 percent of broadband Internet services.