Brazil’s bankrupt Oi sells fixed line unit to Método for US$11.6m

Details: John Tanner; Category: Operators; 14 July 2026; 5046 views

Bankrupt Brazilian operator Oi announced on Saturday it has signed a contract to sell its fixed line services unit to Método Telecomunicações for BRL60.1 million (US$11.6 million) in cash as part of a judicial auction held in April.

Under the contract signed on Friday, the sale of Oi's Isolated Production Unit (UPI) Telephone Services includes the transfer of its switched fixed telephony services, towers, cables and related equipment, as well as the customer base, employment contracts, and contracts with suppliers linked to UPI.

Método will also take over the operation of public utility numbers (190, 192, and 193), and maintenance of public telephones.

As part of the deal, Oi will continue to provide fixed voice services in areas where it is still the sole provider until December 2028.

The sale is part of Oi’s ongoing plan to restructure its operations amid staggering debts, although it remains to be seen whether the Método sale will make much of a difference.

As we reported in November, Oi has been under court-supervised reorganisation since 2023, which followed its first restructuring process that lasted from 2016 to 2022. Under the current restructuring programme, Oi has been selling off many of its other assets, including its mobile, fibre optic, tower and pay TV operations, and its stake in V. tal.

The 7th Business Court of Rio de Janeiro declared Oi bankrupt in November 2025, although Oi is currently appealing that ruling.

Last week, Oi issued a statement to shareholders warning that it may not be able to sustain operations past August 1, revising its cash availability for the end of July from BRL88.1 million to BRL19.6 million, which could threaten essential services.

Método successfully bid for UPI in April as part of a judicial auction held by the 7th Commercial Court on April 8. According to DPL News, Método beat out a competing bid from Sercomtel by offering a full cash payment.

The sale is still subject to approval from Brazil’s National Telecommunications Agency (ANATEL) and the Administrative Council for Economic Defense (CADE).