Telebras Withdraws From Ellalink Submarine Cable for Lack of Financial Resources
December 27, 2019
Telebras will no longer participate in the submarine cable project linking Brazil and Europe for lack of resources, the company said in a statement to the Brazilian stock market regulator. The company said it sent a letter to its partner Ellalink Ireland to amicably terminate the contract announced on 02 January 2019.
The reason cited was that Telebras was included in the Fiscal and Social Security Budget for 2020 with the status of dependent state-owned company, which means it was unable to assume any payment for the project in 2020. The submarine project would interconnect Brazil and Europe with a 40 Tbps capacity cable.