Brazilian start-up On Telecom has announced the launch of operations, with plans to offer a residential 4G service in parts of the State of Sao Paulo. The first tests were conducted in Itatiba, and the service should be expanded this year to Campinas and Sao Jose dos Campos. By the end of 2014, the plans call for coverage of another 133 municipalities in the state. The service functions as a traditional broadband connection, using a wireless router to connect to the 4G network. The monthly subscriptions will range from BRL 99 (5 Mbps) to BRL 169.90 (10 Mbps).
On Telecom is backed by George Soros, Zaki Rakib and Fares Nassar. A fund run by Soros is set to invest at least USD 150 million in te company, giving its a majority stake in On Telecom, CEO Fares Nassar said at a news conference reported by Reuters. The company plans to grow in areas lacking fixed-line services or under-served by the bigger operators. Nassar said the company could soon expand into other regions as the government sells new 4G licences. That would require additional funds from Soros, new investors, or an initial public offering, he added.