Global Village Telecom (GVT) Holding SA is to expand its operations into Rio de Janeiro as it embarks on its 2011 investment strategy for which it has a war chest of $1.04 billion. GVT Holdings SA is a Brazilian telecommunications company controlled by Vivendi. The plans will see GVT Holdings invest 400 million Brazilian reals in Rio de Janeiro, Brazil’s second-biggest city, during the next two years to reach half of the city’s population.

Other than that, the company also plans to begin offering pay-TV services this year in Sao Paulo. The 2011 investment plan represents a 23% increase from GVT’s 1.4 billion reals spent last year.  In the statement announcing the investment plans, GVT noted that its revenue likely grew by 40% in 2010. Margins on earnings before interest, taxes, depreciation and amortization likely reached 40%. The company said it will announce official figures for 2010 when parent company Vivendi reports earnings on March 1.

GVT is a privately held fixed telecommunications carrier operating in the southern, mid-western and part of the northern regions of Brazil. It offers internet and data transmission services as well as national and international long distance services for residential, corporate, small and medium-size businesses.

In São Paulo the company is focused exclusively on the corporate market. GVT operates a next generation network (NGN) that allows for complete integration in voice, data and image transmission. In November 2009, GVT was acquired by French media and telecom company Vivendi.

GVT Holding SA is engaged in the provision of telecommunications services, information, voice transmission, broadband internet, media and other related or complementary activities. It operates in most Brazilian states, providing services to both residential and corporate segments using its own brands GVT, POP and VONO.

Brazilian telecommunications regulator Anatel Last week recommended approval of Vivendi SA’s takeover of GVT Holding, which still has to be cleared by antitrust regulators. Anatel had previously cleared the way for the purchase of GVT, approving a takeover of the company by Vivendi or rival Telefonica SA (TEF), which at the time was making a bid for the Brazilian operator of broadband and fixed-line telephone networks.

The analysis of the purchase by Vivendi now goes to Cade, Brazil’s antitrust regulator. The final approval may take some time, as the acquisition of Brasil Telecom by Tele Norte Leste Participacoes (TNE), or Oi, was approved only in October, two years after Oi acquired control of its rival.