| I      | -      | participate in the capital of other companies, in order to comply with the national telecommunication policy;                                                           |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                    |
| II     | -      | organize wholly owned subsidiaries to the accomplishment of activities set forth in its purpose and recommended their decentralization;                                 |
|   |   |                                                                                                                                                                    |
| III    | -      | promote the import of services and goods required to the accomplishment of activities set forth in its purpose;                                                         |
|   |   |                                                                                                                                                                    |
| IV     | -      | render technical assistance services to companies of the telecommunication sector, carrying out activities of mutual interest;                                          |
|   |   |                                                                                                                                                                    |
| V      | -      | carry out activities related to study and researches, in order to develop the telecommunication sector;                                                                 |
|   |   |                                                                                                                                                                    |
| VI     | -      | enter into agreement with other telecommunication companies or any individuals or entities, in order to ensure the services, without duty and responsibilities damages; |
|   |   |                                                                                                                                                                    |
| VII    | -      | carry out other related activities attributed to the Company by the National Telecommunication Agency – ANATEL; and                                               |
|   |   |                                                                                                                                                                    |
| VIII   | -      | trade equipments and materials required or useful to exploitation of telecommunication services.                                                                        |

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| I   | - | art. 9;                           |
|-----|---|-----------------------------------|
| II  | - | Sole paragraph of the art.11; and |
| III | - | art. 30.                          |

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| I      | -      | set the general guidelines for the Company’s business; |
|--------|--------|--------------------------------------------------------------|
|   |   |                                                         |
| II     | -      | approve the Company’s budget and annual business plan; |

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| III           | -      | convene the General Shareholders’ Meeting;                                                                                                                                                                                                                                                                                                                                                  |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| IV            | -      | approve the Company’s financial statements and management report, submitting them to the General Shareholders’ Meeting;                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| V   | -      | elect or dismiss, at any time, the councilmembers, establishing their attributions, complying with legal and statutory provisions;                                                                                                                                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| VI            | -      | approve the creation of technical committees and consulting for assistance on matters of the Company’s interests, elect members of such committees and approve their internal regulations, which will contain specific rules concerning the composition, functions, powers, remuneration and performance;                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| VII           | -      | monitor directors’ management, examining, at any time, the Company’s books, request any information on agreements executed or that are about to be executed, or any other acts;                                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| VIII          | -      | approve the organizational structure of the Company, may assign limits to the Board for the exercise of such jurisdiction, consistent with legal and statutory provisions;                                                                                                                                                                                                                        |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| IX            | -      | approve and amend the internal rules of the Board of Directors;                                                                                                                                                                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| X             | -      | decide about issuance of share by the Company, involving capital increase, within the limit of capital authorized, defining the terms and conditions of such issuance;                                                                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XI            | -      | decide about subscription bonus issuance;                                                                                                                                                                                                                                                                                                                                                         |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XII           | -      | decide, as delegated by the General Shareholders’ Meeting, as to the issuance of debentures by the Company: (i) timing of the issuance, (ii) time and conditions for maturity, amortization or redemption, (iii) time and conditions for payment of interest, for profit sharing and for reimbursement premium, if any, (iv) form of subscription or placement, and (v) type of debentures; |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XIII          | -      | decide as to the issuance of not convertible debentures, of unsecured type and without real guaranties;                                                                                                                                                                                                                                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XIV           | -      | decide as to the issuance of promissory notes for public distribution (“Commercial Papers”) and as to the submitting the Company’s shares to a system of deposit for trading of the respective certificates (“Depositary Receipts”);                                                                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XV            | -      | authorize the acquisition of shares issued by the Company, for cancellation or custody in the Treasury for subsequent sale;                                                                                                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XVI           | -      | authorize the sale of assets that are directly linked to public telecommunication services, when operative;                                                                                                                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XVII          | -      | authorize the sale of real estate property, constitution of rem guarantees and granting of guarantees for liabilities of third parties, may set limits on the practice of such acts by the Executive Board;                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XVIII         | -      | established in internal standard, the limits for the Board to authorize the sale or encumbrance of permanent assets, including those related to public telecommunications services which they are disabled or inoperable;                                                                                                                                                                         |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
| XIX           | -      | approve the Company's participation in consortia in general, and the terms of such participation, may delegate such powers to the Board, in the limits established, always aiming to develop the activities of the Company's corporate;                                                                                                                                                           |

----

| XX     | -      | set limits for the Executive Officer to authorize the practice of reasonably gratuitous acts in favor of employees or the community involving the Company, including the donation of useless goods to the Company;                                                                                                                                                                                                                                                                                                        |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXI    | -      | approve the creation and extinction of Company’s subsidiaries, in the country or abroad;                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXII   | -      | approve the assumption of any obligation not provided for in the Company’s budget for an amount greater than two hundred and fifty million Reais (R$ 250,000,000.00);                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXIII  | -      | authorize the execution of agreements, not provided for in the Company’s budget, for an amount greater than two hundred and fifty million Reais (R$ 250,000,000.00);                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXIV   | -      | approve investments and acquisition of assets, not provided for in the Company’s budget, for an amount greater than two hundred and fifty million Reais (R$ 250,000,000.00);                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXV    | -      | authorize the acquisition of equity participation on a permanent basis in other companies and the encumbrance or sale of equity participation;                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXVI   | -      | approve the distribution of interim dividends;                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXVII  | -      | choose or remove the independent auditors;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXVIII | -      | indicate or dismiss the Chief Internal Auditor; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| XXIX   | -      | approve the Company career and salary plan, policies of incentives and professional development, regulation and employees, as well as the terms and conditions for collective labor agreements to be executed with unions representing the categories of the Company’s employees and complementary pension fund policy adherence or termination, all related to the Company’s employees, and the Board of Directors may, whenever necessary, assign limits to the Executive Officer to discuss those matters. |

----

| I      | -      | to propose to the Board of Directors the Company’s general plans and programs, specifying the investment plans for expansion of the operating plant;                                                                                                                                                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| II     | -      | to authorize, within the limits established by the Board of Directors in an internal normative instrument, the sale or encumbrance of permanent assets, including those related to the public telecommunication services that may be deactivated or inoperable, and submit to the referred body the sale or encumbrance of assets that exceed these limits; |

| III           | -      | to submit to the Board of Directors and to the Audit Committee, the Annual Report and Financial Statements accompanied with the independent auditors' report and the proposed allocation of profits earned in the year; |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                    |
| IV            | -      | to approve, in accordance with the limits established by the Board of Directors: (a) purchase of materials, equipment, assets, construction and services; (b) sale of assets;                                           |
|          |   |                                                                                                                                                                                                                    |
| V   | -      | to approve the execution of other agreements not mentioned above, according to the limits established by the Board of Directors;                                                                                        |
|          |   |                                                                                                                                                                                                                    |
| VI            | -      | to approve, annually, the planning of financial operations and, quarterly, a summary of the accomplishment of the referred planning;                                                                                    |
|          |   |                                                                                                                                                                                                                    |
| VII           | -      | to approve the creation and extinction of branches, offices, agencies, and representations of the Company, in the country;                                                                                              |
|          |   |                                                                                                                                                                                                                    |
| VIII          | -      | to approve, as it has been awarded by the Board of Directors, the organizational structure of the Company, keeping the Board of Directors informed about it;                                                            |

----

| IX     | -      | to ensure compliance with the standards of ethical conduct of the Company, established by the Board of Directors;                                                                                                                                                                                               |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                            |
| X      | -      | to elaborate and submit to the Board of Directors the policies of institutional responsibility of the Company, such as environment, health, safety and social responsibility of the Company and implement the approved policies;                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                            |
| XI     | -      | to authorize, in accordance with the limits set by the Board of Directors, the practice of gratuitous acts reasonably in favor of employees or the community involving the Company, including the donation of useless goods to the Company; and                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                            |
| XII    | -      | approve the creation of technical committees and consulting for assistance on matters of the Company’s interests, elect members of such committees and approve their internal regulations, which will contain specific rules concerning the composition, functions, powers, remuneration and performance. |

| I      | -      | receipt and discharge values;                                           |
|--------|--------|-------------------------------------------------------------------------|
|   |   |                                                                    |
| II     | -      | correlation signature that does not create obligations for the Company; |

| III           | -      | Company’s representation in assemblies and meetings of the Companies ́ Shareholders which participate;                                                                                            |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                        |
| IV            | -      | grant of mandate to a lawyer for representation in court or in administrative proceedings;                                                                                                                  |
|          |   |                                                                                                                                                                                                        |
| V   | -      | representation in court or in administrative proceedings, except for the practice of acts that may result in waiver of rights;                                                                              |
|          |   |                                                                                                                                                                                                        |
| VI            | -      | representation in public tenders and private tenders involving the Company, in order to provide the services contemplated in its bylaws, and                                                                |
|          |   |                                                                                                                                                                                                        |
| VII           | -      | practice simple acts of administrative routine, including before government agencies, joint stock companies, associations and labor courts, INSS, FGTS and their collecting banks, and other such elements. |

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|   | 1. | To represent the Company in and out of court, before shareholders and general public, being able to appoint attorneys-in-fact together with another Executive Officer and appoint representatives, as well as to delegate incumbencies to the other Executive Officers for implementation of specific acts; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | To follow up and supervise implementation of resolutions determined by the Board of Directors; |
|--------|----|------------------------------------------------------------------------------------------------|

|   | 3. | To establish guidelines and supervise all Company’s activities, in special law activities, internal audit, institutional policy, internal and external communication, sponsorships and development of the Company’s image defining its operating strategy; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | To call meetings of the Executive Officers; |
|--------|----|---------------------------------------------|

|   | 5. | To perform emergency acts “ad referendum” of the Executive Officers; |
|--------|----|----------------------------------------------------------------------------------|

|   | 6. | To carry out other assignments that are determined by the Board of Directors; |
|--------|----|-------------------------------------------------------------------------------|

|   | 1. | To manage, coordinate and supervise the Company’s operating activities, that may be attributed, to the General Executive Officer for Fixed Telephony, by the Board of Directors; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | To delegate, when necessary, to other Directors, incumbencies for practice of specific acts; |
|--------|----|----------------------------------------------------------------------------------------------|

|   | 3. | To represent the Company as established in the current bylaws; and |
|--------|----|--------------------------------------------------------------------|

|   | 4. | To carry out other assignments that are determined by the Board of Directors. |
|--------|----|-------------------------------------------------------------------------------|

|   | 1. | Establish guidelines and supervise the Company’s activities in the economic-finance, accounting areas and management of securities issued by the Company, as well as supervise the management of complementary pension fund; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | To represent the Company before the Securities Commission –CVM, Stock Exchanges and other inspection agencies of the securities market; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | To delegate, when necessary, incumbencies to other Directors related to the practice of specific acts; |
|--------|----|--------------------------------------------------------------------------------------------------------|

|   | 4. | To represent the Company as established in the current bylaws; and |
|--------|----|--------------------------------------------------------------------|

|   | 5. | To carry out other assignments that are determined by the Board of Directors; |
|--------|----|-------------------------------------------------------------------------------|

|   | 1. | To carry out the position and individual assignment determined by the Board of Directors; |
|--------|----|-------------------------------------------------------------------------------------------|

|   | 2. | To sign together with another statutory director documents and acts that claim signature of two directors; and |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | 3. | To represent the Company as established in the current bylaws. |
|--------|----|----------------------------------------------------------------|

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