RESTRICTED
WORLD TRADE S/GBT/W/1/Add.28/Rev.1
14February 1997
ORGANIZATION(97-0786)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM BRAZIL
Draft Schedule onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofBrazil tomembers oftheGroup
onBasic Telecommunications.
_______________
1. Thedraft Schedule incorporates thefollowing modifications totheBrazilian revised offer
submitted on10February 1997 document (S/GBT/W/1/Add.28):
(a) Taking intoaccount theChairman 'sNoteofFebruary 3,1997 (S/GBT/W/3), Brazil
eliminated fromitsschedule limitations referring tomanagement ofscarce resources.
However, ifaconsensus onthismatter isnotreached before theendofthenegotiations,
Brazil reserves therighttoreintroduce limitations inthisregard.
(b) Thegeneral condition referring tothesupply ofspace segment facilities offoreign
satellites wasreworded inorder tostateevenmore clearly thattheuseofforeign
satellites ispermitted whenever theyofferbetter conditions intechnical, operational
orcommercial aspects. Thenewformulation isintended alsotomake itclear that
superior conditions inonlyoneoftheseaspects aresufficient topermit theuseofforeign
satellites.
(c) Anewgeneral condition wasadded tomake clear thattelecommunications services
supplied fordistribution ofradio ortelevision programming directly toservice
consumers arenotincluded intheschedule. Thisaddition brings theschedule inline
withtheBrazilian regulations onthesubject, which donotconsider those services as
basic telecommunications services.
(d) Regarding limitations onMarket Access andNational Treatment forpublic services,
aslight redrafting wasprovided withtheintroduction, inmode 3,oftheword"except",
withtheaimtodissipate possible doubts about thestatus ofthe"phase-in arrangement"
asaneffective commitment byBrazil.
(e) Interconnection between Closed Users Groups andpublic telecommunications transport
networks andservices (PTTNS) isnowensured intheadditional commitments column.
Itwasmade clearthattheconditions fortheinterconnection willhavetodowiththe
exercise ofregulatory faculties.S/GBT/W/1/Add.28/Rev.1
Page2
2. ThisdraftSchedule isconditional onthesatisfactory conclusion ofamultilateral agreement
inbasic telecommunications, andBrazil reserves theright tolistMFN exemptions. Some orallof
thecommitments undertaken mayberevised orwithdrawn inanymoment before theendofnegotiations.
Also, Brazil reserves therighttomake technical changes tothedraftschedule andtocorrect anyerrors,
omissions orinaccuracies.S/GBT/W/1/Add.28/Rev.1
Page3BRAZIL -REVISED DRAFT SCHEDULE
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.C. TELECOMMUNICATION SERVICES
Commitments undertaken inthisoffer aresubject tothefollowing general conditions:
(i) Each telecommunications service tobesupplied inBrazil requires aspecific governmental licence tobeobtained through atransparent, objective and
non-discriminatory process. Licences arenotrequired forthesupply ofValue Added Services.
(ii) Licences referred toinitem(i)aregranted onlytojuridical persons dulyconstituted according totheBrazilian legislation, which requires head office and
management located intheBrazilian territory.
(iii) EMBRATEL hasexclusive rights tolinkwithIntelsat andInmarsat.
(iv) Thesupply ofspace segment facilities ofsatellites thatoccupy orbital positions notified byforeign countries isallowed whenever theyoffer better technical,
operational orcommercial conditions. Otherwise, satellites thatoccupy orbital positions notified byBrazil must beused. Regulatory decisions onthisregard
willbebased onatransparent, objective andnon-discriminatory process.
(v) Thisoffer does notinclude telecommunications services supplied fordistribution ofradio ortelevision programming fordirect reception byservice consumers.
Public domestic andinternational
services, provided using any
network technology, ona
facilities-basis:
2.c.a. Voice telephone
services
2.c.b. Packet-switched data
transmission services
2.c.c. Circuit-switched data
transmission services
2.c.d. Telex services
2.c.e. Telegraph services
2.c.f. Facsimile services(1) None, other than: international traffic
shall berouted through agateway in
Brazil operated byasupplier duly
licensed.
(2) None
(3) Unbound, except:
Within oneyearafter theenactment bythe
President oftheRepublic, ofthepresent draft
General Telecommunications Law, Brazil will
introduce intoitsschedule commitments related
tothesupply ofpublic telecommunications
services binding therelevant parts interms of
Market Access ofthenewLaw.(1) None
(2) None
(3) Unbound, except:
Within oneyearafter theenactment bythe
President oftheRepublic, ofthepresent draft
General Telecommunications Law, Brazil will
introduce intoitsschedule commitments related
tothesupply ofpublic telecommunications
services binding therelevant parts interms of
National Treatment ofthenewLaw.Within oneyearafter the
enactment bythe
President oftheRepublic,
ofthepresent draft
General
Telecommunications
Law, Brazil will
introduce intoitsschedule
Additional Commitments
onregulatory principles,
asemerging from the
newLaw, comprising
competitive safeguards,
interconnection,
universal service, public
availability oflicensing
criteria, independent
regulator andthe
allocation anduseof
scarce resources.S/GBT/W/1/Add.28/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
Non-public domestic and
international services, for
Closed Users Groups, provided
using anynetwork technology,
onafacilities-basis:
2.C.a. Voice telephone
services
2.C.b. Packet-switched data
transmission services
2.C.c. Circuit-switched data
transmission services
2.C.d Telex services
2.C.e. Telegraph services
2.C.f. Facsimile services
2.C.g. Private leased circuit
services(1) None, other than:
network facilities inBrazil shall be
provided byasupplier dulylicensed
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) Interconnection of
Closed Users
Groups 'networks to
thePublic
Telecommunications
Transport Networks
andServices
(PTTNS) willbe
ensured onanon-
discriminatory
basis, subject to
conditions
established inthe
applicable
regulations
(ii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.S/GBT/W/1/Add.28/Rev.1
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing concept is
applicable:
Closed Users Group isagroup
ofnatural orjuridical persons
thatperforms acommon specific
activity, which isnotsusceptible
toextension tothepublic in
general.
Value Added Services:
2.C.h. Electronic mail
2.C.i. Voice mail
2.C.j. On-line information
anddatabaseretrieval
2.C.k. Electronic data
interchange
(EDI)
2.C.l. Enhanced/value-added
facsimile services,
including store-and-
forward, store-and-
retrieve
2.C.m. Code andprotocol
conversion(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) TheuseofPTTNS
willbeensured to
anysupplier of
Value Added
Services, according
totheapplicable
regulations
(ii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
servicesS/GBT/W/1/Add.28/Rev.1
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.C.n. On-line information
and/or dataprocessing
(including transaction
processing)
Thefollowing concept is
applicable:
Value Added Service is
characterized bytheaddition of
features toatelecommunications
service thatsupports it,thus
creating utilities related tothe
access, storage, presentation,
transfer andretrieval of
information.S/GBT/W/1/Add.28/Rev.1
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.C.o. Other services:
Analog/Digital Cellular
mobile-service
(800 MHz/terrestrial
systems)
-onafacilities-basis(1) Unbound
(2) None
(3) None, other than:
(i)Service istobeprovided ona
duopoly basis ineach designated
market; thelocal telephone company
maybeallowed tobeoneofthe
service suppliers, directly orthrough
asubsidiary;
(ii)Direct andindirect participation of
foreign investment inthevoting
capital islimited to49%; no
restriction toforeign ownership for
licences tobegranted asfrom
20July1999.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) Interconnection with
PTTNS willbe
ensured.
(ii) Thegeneral
conditions for
interconnection with
PTTNS are
publicly available.
(iii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.
Paging services
(terrestrial systems)
-onafacilities basis(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.Theregulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.S/GBT/W/1/Add.28/Rev.1
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.C.o. Other services
(continued)
Satellite
telecommunications
transport service.(1) None, other than:
Thesupplier ofthisservice must have a
branch orarepresentative office in
Brazil, foralllegal effects.(1) None Regulatory functions are
entrusted totheMinistry
ofCommunications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.
Thefollowing concept is
applicable:
Satellite telecommunications
transport service isthesupply of
space segment facilities of
geostationary orbit satellites
(GSO) todulylicensed suppliers
ofservices listed inthis
schedule.
Note: Thesupply ofspace
segment facilities ofsatellites that
occupy orbital positions notified
byother countries iscontingent
upon prior coordination with
Brazil oftheir orbital positions
andassociated frequencies(2) None
(3) None, other than:
Thesupply ofspace segment facilities of
satellites thatoccupy orbital positions
notified byBrazil requires thatthe
satellite control stations belocated inthe
Brazilian territory. Direct andindirect
participation offoreign investment inthe
voting capital islimited to49%; no
restriction toforeign ownership for
licences tobegranted asfrom 20July
1999.
(4) Unbound except asindicated inthe
horizontal section(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.