Document:

Exhibit 4.23

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                             CONTRACT FOR SUPPLY OF

                              PRODUCTS AND SERVICES

                      RELATED TO THE IMPLEMENTATION OF THE

                          GSM MOBILE TELEPHONE SERVICE

                                     BETWEEN

                                       TIM

                                       AND

                                      NOKIA

* represents omitted information, which is the subject of a request for
  confidential treatment with the SEC

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                                    CONTENTS
ARTICLE 1       DEFINITIONS ................................................  05

ARTICLE 2       RELEVANT DOCUMENTS .........................................  08

ARTICLE 3       SCOPE ......................................................  08

ARTICLE 4       PRODUCTION .................................................  09

ARTICLE 5       PRICES .....................................................  10

ARTICLE 6       PRICE READJUSTMENT .........................................  11

ARTICLE 7       PAYMENT TERMS AND CONDITIONS ...............................  13

ARTICLE 8       BILLING ....................................................  14

ARTICLE 9       ONSET AND TERM .............................................  17

ARTICLE 10      DUTIES AND RESPONSIBILITIES OF THE PARTIES .................  17

ARTICLE 11      SITES ......................................................  21

ARTICLE 12      TRANSFER OF OWNERSHIP AND RISKS: ...........................  21

ARTICLE 13      MANAGEMENT OF ACHIEVEMENT OF THE SCOPE OFTHE CONTRACT ......  21

ARTICLE 14      EVENTS (MILESTONES) ........................................  22

ARTICLE 15      PROGRESS, INSPECTION AND TEST REPORTS ......................  22

ARTICLE 16      SOFTWARE LICENSES ..........................................  22

ARTICLE 17      INTELLECTUAL PROPERTY RIGHTS ...............................  22

ARTICLE 18      TECHNICAL WARRANTIES .......................................  23

ARTICLE 19      PERFORMANCE BOND ...........................................  23

ARTICLE 20      IMPORTATION OF PRODUCTS ....................................  24

ARTICLE 21      INSURANCE ..................................................  24

ARTICLE 22      TAXES ......................................................  25

ARTICLE 23      PENALTIES ..................................................  25

ARTICLE 24      CONTRACT ENDING ............................................  28

ARTICLE 25      FORCE MAJEUR AND CHANCE EVENTS .............................  29

ARTICLE 26      CONFIDENTIALITY ............................................  30

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ARTICLE 27      ARBITRATION ................................................  31

ARTICLE 28      ADDITIONAL DISPOSITIONS ....................................  32

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                                SUPPLY CONTRACT
Through this private instrument, on one side,

A) TELPE CELULAR S.A., company in private law, with head offices at Av. Conde da
Boa Vista, n(o) 800, 2(o) andar, Boa Vista, in the City of Recife, State of
Pernambuco, registered in the CNPJ under n(o) 02.336.993/0001-00;

TELERN CELULAR S.A., company in private law, with head offices at Rua Prudente
de Moraes, n(o) 2700, salas 8 e 9, Barro Vermelho, in the city of Natal, State
of Rio Grande do Norte, registered in the CNPJ under n(o) 02.332.973/0001-53;

TELEPISA CELULAR S.A., company in private law, with head offices at Av. Frei
Serafim, n(o) 1989, Center, in the City of Teresina, State of Piau, registered
in the CNPJ under n(o) 02.368.412/0001-04;

TELECEAR CELULAR S.A., company in private law, with head offices at Av. Baro de
Studart, n(o) 2575, Dionzio Torres, in the City of Fortaleza, State of Cear,
registered in the CNPJ under n(o) 02.338.114/0001-71;

TELASA CELULAR S.A., company in private law, with head offices at Av. da Paz,
n(o) 2262, Sobral, in the City of Macei, State of Alagoas, registered in the
CNPJ under n(o) 02.328.592/0001-09;

TELPA CELULAR S.A., company in private law, with head offices at Av. Presidente
Epitcio Pessoa, n(o) 3160, Tambauzinho, in the City of Joo Pessoa, State of
Paraba, registered in the CNPJ under n(o) 02.322.271/0001-99;

Henceforth herein called, as a group , "Operators TIM NE";

and

B) TIM CELULAR S.A., company in private law, with head offices at Av. Giovanni
Gronchi, n(o) 7143, Vila Andrade, in the Cty of So Paulo, Estado de So Paulo,
registered in the CNPJ under n(o) 04.206.050/0001-80, henceforth herein called,
individually, "TIM CELULAR";

All together, jointly, called "TIM", in this act represented in the forms
defined by their respective By Laws, treated in this Contract as a single Party,
with no loss to being considered per se as autonomous and individual contracting
parties;

And on the other side, NOKIA DO BRASIL LTDA., company duly established and
incorporated in compliance with Brazilian legislation, with head offices
registered at the address Centro Comercial Downtown, Av. das Amricas, 500, Bloco
19, sala 108, Barra da Tijuca, Rio de Janeiro, RJ, Brasil, registered in the
CNPJ/MF under n.(o) 01.108.177/0001-79, in this act represented in accordance
with its Company By Laws, henceforth herein called "NOKIA";

Both TIM and NOKIA, when referred to in isolation will be individually called
"Party" and when referred to as a group will be called "Parties".

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CONSIDERING THAT TIM and NOKIA have negotiated, in detail, the terms and
conditions for supply of hardware, software and services related to TIM's GSM
network;

CONSIDERING THAT TIM tendered NOKIA a price quote request ("RFQ") for Supply of
Products and Services for the GSM network in Brazil, Ref. RFQ-NW-089/02 on
November 4th, 2002;

CONSIDERING THAT, in answer to RFQ, NOKIA delivered to TIM, on December 3rd
2002, Proposition related to the Supply of Products and Services for the GSM
network in Brazil (the "Proposition"), as per description contained in RFQ;

The Parties have fairly and justly agreed the terms and conditions for the
Supply of Products and Services for the GSM network in Brazil, as stated below:

ARTICLE 1  DEFINITIONS

     1.1  "Final Acceptance" will carry the meaning established in Attachment
          5 - Test and Acceptance Procedures.

     1.2  "Initial Acceptance" will carry the meaning established in Attachment
          5 - Test and Acceptance Procedures.

     1.3  "Commercial Activation" will mean use of the Equipment in a given
          "Site" for the delivery of SMP to subscribers not entitled to gratuity
          (friendly users).

     1.4  "Scope" signifies the Products and Services to be supplied and/or
          performed by NOKIA (according to the case) in accordance with
          ARTICLE 3, Attachment 3 - Procedures for Purchase Orders and
          Attachment 10 - Planning of Demand.

     1.5  "Attachments" means any and all attachments defined in the Contract.

     1.6  "Associated" means any company controlled by TIM and/or by NOKIA, or
          that controls, or that is under joint control of these, directly or
          indirectly.

     1.7  "Commissioning" means every activity, according to the descriptions
          contained in NOKIA'S standard commissioning manual for the Equipment
          in case of point, related to the configuration of the Equipment so
          that it will be ready for connection to other Equipment. Commissioning
          includes testing of the respective Equipment, disconnected from other
          Equipment. Commissioning of the Microwave link involves testing at
          both ends (A and B) of the link. Commissioning does not include any
          activity for installing and assembly of the Equipment, itself.

     1.8  "Contract" means this instrument for Supply of Products and Services,
          as well as its Attachments and any eventual additive terms agreed
          opportunely between TIM and NOKIA.

     1.9  "Schedule" means the period, agreed by the Parties, stated in each
          Purchase Order, within which NOKIA shall deliver and\or render the
          Products and Services (as the case might be), as well as the lead
          times defined in Attachment 10 -Planning of Demand.

     1.10 "Intellectual Property Rights" means any and all patents (including
          supplementary protection certificates), utility models, inventions,
          business concepts, know-how and Information, registered trademarks,
          registered designs, designs, topography rights, database rights,
          copyright (regardless of being registered or not), and every usage and
          right to request protection of the above mentioned, as well as any
          other rights of similar or corresponding nature worldwide, as well as
          the related legal action rights.

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     1.11 "Documentation" means any and all materials and explanatory and
          informative presentations related to the Equipment, Spares and
          Services, in printed or electronic format, to be supplied by NOKIA, in
          accordance with the Contract, including, without limitations, manuals,
          descriptions, specifications, installation instructions and/or for
          users, diagrams, printed material, lists, flowcharts, program
          descriptions and training materials.

     1.12 "Dollar" or "USD" means the official currency of the United States of
          America.

     1.13 "Equipment" means any and all related Hardware and Software to be
          delivered and/or installed and/or tested, as an independent part
          having a specific function in the System, such as, but not limited to:
          BSC (Base Station Controller), BTS (Base Transceiver Station), OMC
          (Operation and Maintenance Center) for BSS, microwave link.

     1.14 "Technical Specifications" means the System's technical and functional
          specifications, specified in Attachment 4 - Technical Specifications.

     1.15 "Technical Warranties" means all the warranties tendered by NOKIA to
          TIM, in accordance with ARTICLE 18 of this Contract.

     1.16 "Project Manager" means the qualified person responsible for the Scope
          of the Contract, in accordance with the dispositions established in
          the Contract.

     1.17 "GSM" is the acronym in the English language for Global System for
          Mobile Communication.

     1.18 "Hardware" means the telecommunications infrastructure equipment
          produced or purchased by NOKIA, with the exception of the Software,
          which will be supplied by NOKIA to TIM as part of the Scope of the
          Contract.

     1.19 "Information" means the Software and its respective Documentation in
          any format or medium, as well as any and all changes, updates or
          enhancement; (b) any other information related to the Software
          supplied by NOKIA to TIM that is identified by NOKIA as proprietary or
          confidential; (c) the terms of the Contract; and (d) information
          belonging to TIM or NOKIA, in writing, technical, commercial,
          financial or marketing related to inventions or products, research and
          development, production, industrial processes or engineering, costs,
          profits or margin, staff qualifications and salaries, finances,
          clients, marketing and production, and future business plans that are
          clearly proprietary or confidential.

     1.20 "Integration" means a connection of the Equipment to other relevant
          Equipment and/or equipment belonging to third parties (according to
          the case) within TIM's GSM network, according to the limits and as per
          definition established in the Contract. Integration does not include
          any reconfiguration or optimizing activity, nor does it include any
          equipment installation or assembly activity.

     1.21 "Item" means any item of Hardware, Software, Spares, Services and
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     1.22 "Price List" means the list of Unit Prices given in Reals valid under
          the Contract, related to each Item, according to the values
          established in Attachment 1 - List of Prices, Discounts and Vouchers.

     1.23 "Responsibility Matrix" means the list of duties established in
          Attachment 2 - Responsibility Matrix.

     1.24 "Purchase Order" means documents issued by TIM specifying the Products
          and Services to be delivered and/or carried out by NOKIA (according to
          the case), in accordance with this Contract, and that shall include,
          in addition to other information, the scope, quantities and
          corresponding Schedule.

     1.25 "Performance Bond" means the financial foreclosure warranty in benefit
          of TIM, in accordance with ARTICLE 19 of the Contract.

     1.26 "Unit Price" means the price related to each Item to be supplied, in
          accordance with the disposed and established in Attachment 1 - Price
          List, Discounts and Vouchers, of the Contract.

     1.27 "Acceptance Procedure(s)" means any and all procedures related to the
          tests and acceptance procedures established in the Contract, including
          in Attachment 5 -Test and Acceptance Procedures.

     1.28 "Products" means the Equipment, Spares and Documentation to be
          supplied in accordance with this Contract.

     1.29 "Reals" means the official currency of the Federated Republic of
          Brazil.

     1.30 "Services" means services to be delivered by NOKIA in accordance with
          the Contract, including, but not limited to installation and assembly,
          Commissioning and Integration.

     1.31 "System" means the totality of the Equipment to be supplied by NOKIA
          to TIM according to this Contract.

     1.32 "Site" means the physical site where the Products will be installed
          and assembled.

     1.33 "SMP" is the acronym for the expression in Portuguese "Mobile Personal
          Service".

     1.34 "Spares" means any Equipment used as replacement for maintenance
          purposes.

     1.35 "Software" means software developed or purchased by NOKIA and supplied
          to TIM and including (i) the object code versions executable by
          machines for the Equipment user-loadable software; (ii) firmware built
          into the Equipment; (iii) all the related user documentation; (iv) any
          update or review for this software or of the firmware delivered to
          TIM, in accordance with this Contract (as per definitions given from
          here on) or any related support and maintenance services contract,
          regardless of the manner of delivery used for the Software (ex.:
          separate physical media, online); and (v) any copy of any of these
          items.

     1.36 "Final Acceptance Term - FAT" means the Final Acceptance Term issued
          by TIM, as established in Attachment 5 - Test and Acceptance
          Procedures.

     1.37 "Initial Acceptance Term - IAT" means the Initial Acceptance Term
          issued by TIM in accordance with Attachment 5 - Test and Acceptance
          Procedures.
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     1.38 "Site Value" means the value of the Equipment and Services related to
          the Site as defined in the respective Purchase Order(s).

ARTIGO 2 RELEVANT DOCUMENT

     2.1  Attachments. The Attachments listed below are part and parcel of this
          Contract:

          Attachment 1: List of Prices, Discounts and Vouchers

          Attachment 2: Responsibility Matrix

          Attachment 3: Purchase Order Procedures

          Attachment 4: Technical Specifications

          Attachment 5: Acceptance Tests and Procedures

          Attachment 6: Performance Bond

          Attachment 7: Software License Terms and Conditions

          Attachment 8: Software Correction Terms and Conditions

          Attachment 9: Software Warranty Terms and Conditions

          Attachment 10: Demand Planning

          Attachment 11: Applicable Documents

     2.2  In the event of conflicts or doubts, this Contract shall prevail over
          the Attachments, except where related to issues of a technical nature
          that are clearly defined in the Attachments.

ARTIGO 3  SCOPE

     3.1  The Scope for this Contract is:

          (A)  Supply of products by NOKIA to TIM; and

          (B)  Delivery of services, including, but not limited to, drafting of
               implementation projects and execution of tests needed for
               implementing the System, services of installation and assembly.
               Commissioning and Integration; and the delivery of services
               needed for implementing this system in accordance with the
               technical Specifications foreseen in this Contract.

     3.2  NOKIA shall, in accordance with the highest standards worthy of a
          fully skilled, experienced and competent supplier, supply, install and
          assemble, commission, integrate and test the System, including
          Products and Services as established in this Contract.

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     3.3  NOKIA guarantees that it will supply TIM with correct and accurate
          information about its experience and qualification, while at the same
          time commits to addressing and continuing to be aware of every
          modification related to legislation, codes, norms and work practices,
          relevant to performing its duties under the terms and conditions of
          this Contract.

     3.4  This Contract establishes NOKIA's duty to supply Products and Services
          to TIM in accordance with the Purchase Orders issued by TIM and
          accepted by NOKIA. TIM shall only commit in relation to the Products
          and Services object of any Purchase Orders duly issued, exclusively at
          its discretion, and accepted by NOKIA, with this not implying any form
          of commitment by TIM to the values estimated for issuance of
          Performance Bond according to the definition established in Article
          19. Any other document issued by TIM, listing Products/Services and
          their respective amounts, shall be considered a mere estimate and will
          not carry any obligation or responsibility for TIM. The delivery of
          Products and rendering of Services can only be initiated by NOKIA
          through issuance of the respective Purchase Orders by TIM and their
          acceptance by NOKIA.

     3.5  The total contract value shall be defined by the sum of all these
          Purchase Orders, without the existence of any commitment by TIM of
          acquiring NOKIA Products and/or contracting NOKIA Services, nor,
          reimbursing any eventual expenses incurred by NOKIA due to having
          signed this Contract, except where foreseen differently in this
          Contract.

     3.6  Purchase Orders are liable to the procedures specified in Attachment 3
          - Purchase Order Procedures and in Attachment 10 - Demand Planning.

ARTIGO 4  PRODUCTION

     4.1  NOKIA will manufacture the Products in Brazil to the point required to
          achieve the classification of local manufacturer, i.e. register in the
          Basic Productive Process (Processo Produtivo Bsico - PPB), in
          accordance with the requirements set out by the competent public
          authorities, National Economic and Social Development Bank (Banco
          Nacional de Desenvolvimento Econmico e Social - BNDES) and the Special
          Agency for Industrial Funding (Agncia Especial de Financiamento
          Industrial - FINAME) described in further detail in Sections 8.7 and
          8.8 of this Contract. NOKIA shall identify every item produced in any
          other country. Notwithstanding the effective local production of the
          Products, prices charged from TIM cannot be higher than those
          established in this Contract.

     4.2  TIM will be entitled to inspect NOKIA's Brazilian production
          facilities, including access to premises and relevant information,
          through prior written notification, to be delivered a minimum of 5
          (five) working days before the intended inspection date.

     4.3  Subcontracts: Should NOKIA intend to subcontract out part of its
          duties under this Contract, NOKIA shall, within 10 (ten) days of the
          signature date for this Contract, deliver the list of names of the
          subcontracted companies to TIM for approval, clearly specifying each
          of the subcontracted companies' duties. Within 10 (ten) days of
          receiving this notification, TIM shall inform NOKIA, in writing:

          (A)  Approval of the list of subcontracted companies; or

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          (B)  Rejection of the list of subcontracted companies or of any
               specific subcontracted company(ies), also supplying relevant,
               detailed and valid information related to the rejection motives.
               The information supplied to TIM cannot, for any reason or under
               any form, be passed on to third parties, including the list of
               subcontracted companies. In the absence of such notification by
               TIM, the list of subcontracted companies will considered approved
               at the end of the term of 10 (ten) consecutive days defined
               above.

     4.3.1 In any case, NOKIA will remain entirely responsible for any and all
           actions and/or omissions by its subcontracted companies and the
           perfect execution of this Contract.

ARTIGO 5  PRICES

     5.1  *

     5.2  *

     5.3  *

     5.4  *

     5.5  *

ARTIGO 6  PRICE READJUSMENT

     6.1  *

     6.2  Prices defined in Attachment 1 - List of Prices, Discounts and
          Vouchers are fixed and can be readjusted only in accordance with the
          items defined in this Article.

          6.2.1 For the purpose of readjustment calculations, only the first
                three digits of the decimal portion shall be considered.

     6.3  IMPORTED PRODUCTS

          6.3.1 The prices for imported Products will be readjusted using the
                following criteria:

                6.3.1.1 All prices on the Invoice shall be stated in Reals.

                6.3.1.2 *

     6.4  *

          6.4.1 *

     6.5  *

          6.5.1 *

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          6.5.2 *

          6.5.3 *

          6.5.4 *

ARTIGO 7  PAYMENT TERMS AND CONDITIONS

     7.1  Payment made for the Equipment, Services and Spares will be made by
          TIM, to NOKIA, as follows:

          7.1.1 *

          7.1.2 *

          7.1.3 *

     7.2  *

ARTIGO 8  BILLING

     8.1  Invoices must contain the following information:

          (A)  Number and date of the Purchase Order and the reference number
               for the Item on the Purchase Order;

          (B)  Item on the Price List and the corresponding value;

          (C)  FINAME code, where applicable for the Item purchase;

          (D)  Number of the internal order TIM, as long as this has been
               expressly and, in due time, informed to NOKIA.

          (E)  the Site relative to the Produto purchased or to the Service
               delivered, when informed by TIM on the Purchase Order.

     8.2  Invoicing for Products and Services requested by TIM to NOKIA, by way
          of issuance of a Purchase Order, shall observe the provisions of
          Article 6 - Price Readjustment.

     8.3  Notwithstanding the provisions relative to addressing BNDES norms
          foreseen in Section 8.7 and except where explicitly and differently,
          agreed in writing by the Parties, TIM will be entitled to only
          authorize payments when NOKIA presents (i) invoice; and (ii) notarized
          copies of payment receipts to NOKIA and/or subcontractor staff for
          delivering services related to this Contract, and the payment of the
          social contribution to INSS (National Social Security Institute -
          Instituto Nacional da Seguridade Social) and to FGTS (Time of Service
          Guarantee Fund - Fundo de Garantia por Tempo de Servico) relative to
          month preceding the issuance date for the invoice. The documents
          mentioned in item (ii) shall be presented to TIM by the 15yth
          (fifteenth) day of the month relative to the due date in case of
          point.
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     8.4  In case of delay in presenting invoice, and/or of any errors
          identified on the invoice, the following procedure shall be addressed:

          (A)  If there is a possibility for correcting the invoice presented by
               NOKIA by way of a correction letter, TIM shall inform NOKIA in
               relation to the necessary correction in up to 10 (ten) working
               days counted from the date of reception of the invoice, and NOKIA
               shall deliver said letter of correction to Tim within 2 (two)
               working days counted from the date of reception of TIM's request
               for the correction letter.

          (B)  If it is not possible to correct the invoice presented by NOKIA
               by way of a correction letter, and it is necessary to replace it
               with a new one, TIM shall return the invoice to NOKIA, in up to
               10 (ten) working days counted from the date of its reception, in
               order to make issuance of a new invoice possible.

     8.5  TIM shall make payment for the invoice presented by NOKIA in
          accordance with the payment terms and conditions defined in Article 7
          - Payment Conditions and Terms, or within 20 (twenty) days counted
          from the date of issuance of the corrected invoice as provided for in
          Section 8.4, whichever occurs later.

     8.6  Occurrence of errors in invoices, absence of documents and/or errors
          or delay in the information supplied by NOKIA shall result in
          postponing the relative due dates with no penalties being incurred by
          TIM.

     8.7  Addressing BNDES norms: NOKIA must act in compliance with every
          relevant BNDES rule or norm, that must be addressed by NOKIA, in order
          for TIM to be entitled to funding from BNDES ("BNDES Norms").

     8.8  Invoices issued by NOKIA relative to the acquisition of locally
          manufactured Items must include the FINAME code, using the
          nomenclatura supplied in the Computerized Manufacturer Registry
          (Cadastro de Fabricantes Informatizado - CFI/FINAME), as long as this
          code has been issued by FINAME by the invoice issuance date. NOKIA
          shall present technical and financial information about the Items
          acquired by TIM, together with the relevant invoices as requested or
          required by BNDES or by FINAME. TIM will not accept more than invoice
          for different parts or the same Item. All invoices relative to the
          acquisition of locally manufactured Items will be liable to return or
          postponing of due dates should these not be compliant with BNDES norms
          or other procedures defined in this Contract.

     8.9  NOKIA will be responsible for accuracy and authenticity of any and all
          information supplied to TIM linked to addressing NOKIA's
          responsibilities.

     8.10 Should NOKIA not meet its duties and obligations, as provided for in
          Sections 8.7 and/or 8.8, and for which NOKIA is accountable in
          accordance with the provisions of this Contract, making it impossible
          for TIM to be eligible for funding in accordance with BNDES norms for
          reasons ascribable to NOKIA, TIM will be entitled to rescinding the
          Contract, as long as NOKIA is incapable of correcting the violation
          within a 60-day (sixty) term, counted from the date of notification in
          writing by TIM that it is not possible to obtain funding in accordance
          with BNDES Norms due to non-compliance on NOKIA's part, of the duties
          and obligations defined in Sections 8.7 and/or 8.8, with no loss on
          losses or damages owed TIM resulting from such non-compliance.

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     8.11 It will not be considered violation of the responsibilities defined in
          Section 8.7, on NOKIA's part, if TIM's funding request from BNDES is
          refused or postponed for the following reasons:

          (A)  Any changes in laws or government and/or authorities actions,
               after signature of this Contract, that might come to affect
               negatively NOKIA capacity to address BNDES Norms; and

          (B)  Cases of force majeur.

     8.12 Deductions and Retentions: TIM will be entitled to, at its sole
          discretion, retain and/or deduce from any payment owed to NOKIA:

          (A)  The value of any applicable fine/penalty foreseen in this
               Contract;

          (B)  The value of damages caused by NOKIA, and for which NOKIA is
               accountable in accordance with this Contract's provisions;

          (C)  Any debt by NOKIA to TIM;

          (D)  Values charged from TIM, administratively or legally, stemming
               from taxes or labor or social security claims, relative to duties
               foreseen in this Contract or derived from application of the law
               not addressed by NOKIA.

     8.13 TIM will be entitled to discounting values owed by NOKIA, as per this
          Contract, from any future payment. Should this value exceed the value
          of outstanding invoices, NOKIA shall cover the difference in up to 45
          (forty-five) days counted from the date of reception of the respective
          notification from TIM.

     8.14 Before making any retention and/or deduction foreseen in this Section,
          TIM shall notify NOKIA, in due time, about the intended deduction
          and/or retention.

     8.15 Invoice payment will be suspended if:

          (A)  The necessary documents for payments, according to the provisions
               of this Contract, are not presented; or

          (B)  Errors and/or delays in issuance of invoices according to the
               terms and conditions presented in Section 8.1.

     8.16 Payment Procedures: Every payment made must be deposited in the bank
          account specified in writing by NOKIA.

          8.16.1 The information mentioned in Section 8.16 must be up-dated 15
                 (fifteen) days in advance, whenever there is a need, on NOKIA's
                 part, of modifying information previously supplied by TIM.

          8.16.2 TIM is not liable to fines for delay in payments due to any
                 incorrect information supplied by NOKIA relative to bank
                 options.

          8.16.3 The value credited to NOKIA's bank account must be considered
                 full settlement of any and all payment obligations attributed
                 to TIM on the invoice relative to the values of the
                 installment effectively settled.

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     8.17 Should NOKIA receive any form of fiscal benefit directly linked to the
          Products and Services foreseen in this Contract, NOKIA shall address
          every requirement applicable so that TIM, if it so desires, can accrue
          the same benefit previously mentioned.

     8.18 Granting of credit titles, factoring, discounts, banking credits and
          collections and credit guarantee by NOKIA stemming from this Contract
          is strictly forbidden, whether partial or total, without prior consent
          in writing by TIM.

     8.19 In case of lacjk of definition otherwise in another part of this
          Contract, NOKIA shall bear all the necessary expenses to carry out the
          Scope of the Contract, including, but not limited to, housing, meals
          and transportation of its staff, subcontrators, powers of attorney or
          representatives. NOKIA will not be entitled to any reimbursement
          whatsoever for the above mentioned expenses.

ARTIGO 9  ONSET AND TERM

     9.1  This Contract's term will begin on the date of signature and will
          remain valid up to October 31st 2004, and retroactively, back to May
          22nd 2003. This Contract may be renewed by mutual agreement, stated in
          writing, between the Parties.

ARTIGO 10 DUTIES AND RESPONSIBILITIES OF THE PARTIES

     10.1 Without loss of any other duty or obligation foreseen in this
          Contract, the responsibilities of each Party are defined in Attachment
          2 - Responsibility Matrix.

     10.2 NOKIA's duties and obligations:

          10.2.1 NOKIA has as duties and obligations to:

          (A)  Supply the System, including Products and Services, all of the
               highest quality level, adequate for their purpose and in good
               standing and in conditions to afford integration with the
               systems, software, equipment and services listed, as specified in
               this Contract, including those contracted by NOKIA's
               subcontractors, as well as any and all resources needed to
               develop the Scope of this Contract.

          (B)  Carry out installation and assembly, Product Commissioning,
               Integration and Test, deploying suitable technical labor for
               performing and supervising these activities, in accordance with
               the terms defined in this Contract;

          (C)  Supply, free of charge, Documentation related to the operation of
               the Products and Services effectively supplied by NOKIA;

          (D)  Meet, at its own expense and whenever requested, with
               representatives from TIM;

          (E)  Supply, promptly, any and all information requested by TIM
               related to the execution of this Contract;

          (F)  Strictly adhere to the Schedule, always maintaining a
               satisfactory level of quality for the activities foreseen in this
               Contract, in particular for the purpose of preventing any losses
               or impairment to the undertaking of any activities that depend
               directly on these services, notifying TIM immediately of any
               eventual delay that might have occurred or could occur in the
               future;

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          (G)  Take the necessary steps in relation to subcontractors in order
               to ensure the rights of TIM, as defined in this Contract, with
               the obligation of replacing them whenever this is requested
               formally by TIM, by way of a formal notification, as long as it
               is for a duly justified reason;

          (H)  Remove, at its own cost and responsibility, all packaging
               materials, surplus material, etc., related to the Products and
               Services, transporting them away from the Sites where the
               Equipment was installed, preserving them in suitable conditions
               of preservation and cleanliness, respecting any norm or procedure
               issued by TIM and/or government requirements related to Site
               administration and security;

          (I)  Submit technical information, drawings, manuals, documents and
               calculations foreseen in Attachment 4 - Technical Specifications,
               as well as, any other documents agreed between the Parties, for
               prior approval by TIM, related to the Scope of the Contract,
               including the ones needed for the undertaking and follow up of
               the installation and Testing of these Items, it being agreed that
               the eventual approval on TIM's part does not in any way reduce or
               exclude NOKIA's responsibility in relation to such Items;

          (J)  Immediately inform TIM, in writing, or through any other medium
               previously agreed between the Parties, any error or flaw
               detected;

          (K)  Allow and make it possible for TIM, by way of representatives, to
               carry out, at any moment, inspection or testing on Site and
               provide inspectors with all the necessary information and
               documents, free of onus, as well as maintaining records of all
               relevant events, communication, decisions, irregularities,
               observations and claims;

          (L)  Acquire Products in its own name, except where agreed otherwise,
               being the sole Party responsible for the respective payment, it
               being forbidden to use TIM's name in such transactions;

          (M)  Issue, within the time frames agreed between the Parties, the
               reports requested by TIM;

          (N)  Define and maintain available a technical team and enough
               professionals, in order to meet the requirements defined by TIM
               in this Contract, in relation to terms and quality, with said
               technical team and professionals reporting to the Project Manager
               appointed by NOKIA, who will also be responsible, among other
               activities, for performing the necessary interface with TIM;

          (O)  Sign all insurance contracts in accordance with Article 21;

          (P)  Pay all salaries, labor and social security charges, as well as
               any other duties, taxes or contributions required by the
               applicable legislation, of its staff related to the Scope of this
               Contract, it being NOKIA's exclusive responsibility to meet said
               obligations;

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          (Q)  Address all occupational safety requirements applicable to the
               Scope of this Contract, in compliance with the existing
               legislation, being obliged to supply all its employees and
               require the same from its subcontractors, any and all collective
               or individual safety equipment (in particular hardhats, shoes,
               safety belts, etc.), as well as requiring that they make use of
               the equipment supplied and adequate addressing of pertinent
               rules, making sure of the proper deployment of said equipment;

          (R)  Supply, directly or subcontracting, locally manufactured Products
               duly registered in the FINAME, where applicable, in accordance
               with the existing legislation;

          (S)  Provide in every item, where applicable, in visible points,
               identification plaques containing: the name of the manufacturer,
               site and year of manufacture of the item, in addition to its
               technical identification and serial number;

          (T)  Without any loss to the provision made in Section 10.3 of this
               Contract, be fully responsible and accountable for any eventual
               accidents caused by its employees or by those of its
               subcontractors to TIM and to third parties, stemming from
               performing the Scope, as well as any damages caused to TIM or to
               third parties by NOKIA employees or those of its subcontractors;

          (U)  Be fully responsible, before TIM, for its employees and
               subcontractor companies, including taxes related to social
               security, accidents and charges of administrative, labor,
               punitive, tax and civil charges, being NOKIA considered the sole
               employer, it being explicit henceforth that there is no bond of
               any type between NOKIA's employees and its subcontractors and
               TIM;

          (V)  Be totally responsible for the delivery of Products and Services
               to the Sites defined in accordance with the Purchase Orders
               accepted by NOKIA to the correct site, being liable and
               responsible for all additional expenses stemming from deliveries
               made to incorrect Site venues for reasons ascribable to NOKIA,
               taking on all transportation related risks in any hypothesis;

          (W)  Be fully responsible for removal from Sites of Products delivered
               without having been requested by TIM; and

          (X)  Obtain prior permission from TIM for access to Sites under its
               responsibility.

     10.3 RESPONSABILITIES

          10.3.1 NOKIA assumes the responsibility for all administrative and
                 legal claims or suits, resulting from its actions or
                 omission thereof, including by its employees and
                 subcontractors, related to this Contract, freeing TIM from
                 any responsibility in this aspect. NOKIA shall assume any
                 and all expenses stemming from damages caused by its
                 employees and subcontractors to TIM and/or third parties.

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          10.3.2 In case of legal suit filed by any third party against TIM,
                 including labor claims filed against TIM by NOKIA's
                 employees and/or subcontractors, NOKIA will be forced to
                 replace TIM in the respective suits as long as said claims
                 are related to the Products and Services delivered by NOKIA
                 under the terms and conditions of this Contract.

                 10.3.2.1 Should NOKIA not act in defending these claims or
                          suits, TIM will be entitled to take any and all
                          appropriate legal measures and will be reimbursed
                          for all expenses stemming from such measures,
                          including legal costs and lawyers' fees.

          10.3.3 NOKIA will be responsible and shall indemnify TIM for any
                 expense, liability, loss, action or suit related to injuries
                 or death caused to any person, or any other type of damage,
                 to any of TIM's or third parties' assets, stemming from the
                 execution of the terms and conditions of this Contract or
                 during the execution of its Scope, as applicable, and
                 resulting from intentional or chance acts, as well as
                 omission by NOKIA or its subcontractors.

          10.3.4 NOTWITHSTANDING ANY OTHER PROVISION CONTAINED IN THIS CONTRACT,
                 NONE OF THE PARTIES (OR THEIR ASSOCIATES) IN THIS CONTRACT
                 SHALL BE HELD RESPONSIBLE, IN ANY WAY, FOR ANY INDIRECT
                 DAMAGE CAUSED TO THE OTHER PARTY, INCLUDING, BUT NOT LIMITED
                 TO, LOSS OF REVENUE OR LOSS OF PROFITS RESULTING FROM THIS
                 CONTRACT, OR DURING THE EXECUTION OF ITS SCOPE, EXCEPT IN
                 CASES OF SEVERE FAULT OR INTENT.

     10.4 TIM'S DUTIES AND OBLIGATIONS

          10.4.1 TIM's duties and obligations include:

          (A)  Punctually address its financial duties in relation to NOKIA;

          (B)  Supply additional information to NOKIA by way of written request;

          (C)  Be responsible for the issuance of IAT and FAT or for indicating
               the reasons for the rejection, in compliance with the terms and
               conditions defined in Attachment 5 - Test and Acceptance
               Procedures;

          (D)  Perform its respective duties and obligations as provided for in
               this Contract, including, but not limited to carrying out all the
               necessary Site preparation work for implementation by NOKIA;

          (E)  Perform payment related to any additional costs imposed on NOKIA
               stemming from delivery of Products to the wrong Site for reasons
               solely ascribable to TIM; and

          (F)  Authorize access, to Sites, by NOKIA employees and
               subcontractors, by way of prior request from NOKIA.

ARTIGO 11 SITES

     11.1 Site Approval and Supply:

          11.1.1 TIM shall supply Site venues to NOKIA in accordance with the
                 terms and conditions foreseen in Attachment 5 - Test and
                 Acceptance Procedures and in Attachment 4 - Technical
                 Specifications.

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ARTIGO 12 Transfer OF ownership AND RisKs:

     12.1 The risk and responsibility related to the Products and Services will
          be transferred to TIM by way of (i) Initial Acceptance or (ii)
          Commercial Activation, whichever happens first.

     12.2 Ownership of the Hardware shall be transferred to TIM by way of full
          payment for these. Ownership of Software and of Documentation will
          remain NOKIA's and/or its respective license holders, as per
          Attachment 7 - Terms and Conditions of Software Licenses.

ARTIGO 13 MANAGEMENT OF ACHIEVEMENT OF THE scopE oF THE CONTRACT

     13.1 The Scope of the Contract will be achieved by NOKIA through deployment
          of its own methods and standards, in compliance with every Technical
          Norm and requirement defined in this Contract. NOKIA shall address all
          applicable rules, including the norms established by ANATEL (National
          Telecommunications Agency Agencia Nacional de Telecomunicacoes), CREA
          and ABNT (Brazilian Association of Technical Norms - Associacao
          Brasileira de Normas Tecnicas).

     13.2 Each party shall formally communicate to the other the full names of
          its Project Managers.

     13.3 The Parties shall appoint people to replace or stand in for Project
          Managers in case these should be absent or eventually impeded from
          performing their functions.

     13.4 NOKIA shall maintain a Project Manager available for TIM during the
          time needed to fulfill this Contract. The referred manager will be
          responsible for supply and inspection of the installation of said
          Products e Services.

     13.5 TIM will appoint its Project Manager, who will be responsible for
          inspecting the achievement of the Scope of the Contract, from the
          onset to its acceptance by TIM, with NOKIA being obliged to
          collaborate with said inspection.

     13.6 NOKIA will appoint a professional duly registered in the Regional
          Engineering and Architecture Council (Conselho Regional de Engenharia
          e Arquitetura - CREA) in each state where NOKIA will deliver Services,
          who will be responsible for managing the Services.

     13.7 Each Party shall be responsible for the daily and transportation
          expenses related to the displacement of engineers and technicians of
          the other Party, whenever their presence is deemed necessary for
          verification and certification of the undertaking of a given activity,
          which could be carried out for reasons ascribable to the other Party.

     13.8 Every communication related to undertaking the Scope of this Contract
          shall be carried out in writing and sent to the other Party's Project
          Manager, except in cases of verbal agreements, based on the urgency of
          the work, which must later be confirmed in writing within a maximum of
          three (3) days of its occurrence.

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ARTIGO 14 events (Milestones)

     14.1 Each Party shall meet the Schedule.

     14.2 Issuance of IAT by TIM or payment made to NOKIA of any sums owed under
          the terms of this Contract shall not release NOKIA from its
          responsibilities in relation to the activities undertaken and to be
          performed, and shall not, in any way, imply in the Final Acceptance of
          these activities.

     14.3 Should TIM verify the existence of any irregularity or shortcoming in
          relation to the activities stated as concluded by NOKIA, these
          activities will be considered as not done, and remain pending until
          NOKIA corrects such irregularities or shortcomings, with NOKIA being
          liable for the related expenses.

ARTIGO 15 PROGRESS, INSPEction and TEST rEportS

     15.1 NOKIA shall present TIM, whenever requested, reports on the progress
          of the implementation of the System, in order to keep TIM informed of:
          (i) the current stage in comparison with the Schedule; (ii) the next
          steps to be taken by NOKIA relative to the problems faced or to be
          faced; and (iii) corrections made or to be made.

     15.2 The procedures for Acceptance of Products and Services are foreseen in
          Attachment 5 - Test and Acceptance Procedures.

     15.3 For the purpose of verifying the compliance of the Equipment in
          relation to the applicable technical regulations and the Technical
          Specifications, on request by TIM, NOKIA shall schedule a visit to
          NOKIA's production facilities.

     15.4 Except where otherwise agreed between the Parties, NOKIA shall supply,
          at its own expenses, whatever needs there are for the execution of the
          tests in compliance with the disposed in Attachment 5 - Test and
          Acceptance Procedures.

ARTIGO 16 SOFTWARE LICENSE

     16.1 The use of any Software is subject to the terms contained in the
          Software license described in Attachment 7 - Software License Terms
          and Conditions.

ARTIGO 17 INTELLECTUAL PROPERTY RIGHTS

     17.1 Copyright of all drawings, specifications, manuals, documents and
          data, as well as the Intellectual Property Rights, supplied by one of
          the Parties to the other, in accordance with this Contract, shall
          remain with the first Party above-mentioned, however, the receiving
          Party will have exclusive and non-transferable license to use the
          copyright in fulfilling this Contract, as well as for operation and
          maintenance of the System in Brazil, under the terms defined in this
          Contract. This license does not include any rights to issue
          sub-licensing. Unauthorized copies are strictly forbidden.

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ARTIGO 18 Technical warranty

     18.1 The warranty terms for the Equipment can be found specified in
          Attachment 9 - Software Warranty Terms and Conditions.

     18.2 The Software correction terms are specified in Attachment 8 - Software
          Correction Terms and Conditions.

     18.3 NOKIA guarantees the careful and professional delivery of the Services
          in compliance with the Technical Specifications. Should the Services
          delivered by NOKIA not be in accordance with the above-mentioned, TIM
          shall notify NOKIA in relation to the case and NOKIA shall take the
          necessary measures to rectify the non-compliance in the shortest time
          possible.

     18.4 It is agreed between the Parties that any and all Products must
          correspond to the GSM specifications foreseen in Brazilian
          legislation, including in so far as any applicable ANATEL and ABNT
          rules. The Parties also agree that NOKIA cannot be held responsible
          for the consequences of changes in the GSM specifications after the
          Products have been supplied to TIM.

     18.5 NOKIA commits to presenting the ratification certificates for all
          Equipment models supplied with the respective validity dates duly
          up-to-date.

     18.6 NOKIA also commits to renewing with ANATEL or any other pertinent
          competent authority, the expired ratification certificates for any
          model of Equipment installed in the TIM networks.

ARTIGO 19 performance bond

     19.1 During the term of this Contract, Performance Bonds shall be issued by
          prime banking company, approved by TIM, in accordance with the terms
          and conditions established in Attachment 6 - Performance Bond, for
          sequential periods, until January 31st 2005, using as base value the
          15% (fifteen percent) of the supply of Products and Services, adopting
          the following:

          19.1.1. As a guarantee of the execution of this Contract, NOKIA shall,
                  within 10 (ten) working days after signature of this
                  Contract, deliver to TIM a Performance Bond equivalent in
                  value to 15% (fifteen percent) of the value estimated by
                  TIM, in accordance with Attachment 10 - Demand Planning, for
                  the Purchase Orders to be carried out under this Contract in
                  the six months following the issuance of the Performance
                  Bond.

                  19.1.1.1. It is henceforth agreed that the Performance Bond,
                            related to the first six months of the term of
                            this Contract, shall be issued to the value of
                            R$13,500,000.00 (thirteen million, five hundred
                            thousand Reals), equivalent to 15% (fifteen
                            percent) of the value estimated for the Purchase
                            Orders to be issued by TIM in this period, that is
                            to say, R$ 90,000,000.00 (ninety million Reals),
                            based on 412 (four hundred and twelve) BTS, 4
                            (four) BSC, 1 (one) TCSM, 761 (seven hundred and
                            sixty-one)expansion TRX EDGE, 9 (nine) BSC
                            upgrades and 4 (four) TCSM upgrades.

          19.1.2. It is also agreed that the remaining Performance Bonds shall
                  be successively issued until January 31st 2005, at each six
                  month period, under the terms foreseen in Sub-Section
                  19.1.1. above.

     19.2 Each Performance Bond will remain valid for six months. The new
          Performance Bond shall be delivered to TIM in up to 10 (ten) days
          before the expiry of the term of the previous Performance Bond.

     19.3 Should TIM decide to foreclose the guarantee foreseen in this Section,
          TIM shall inform NOKIA of its intention, by way of written
          notification with thirty (30) days notice, in order to grant NOKIA the
          opportunity to redeem the non-compliance within this time frame. The
          foreclosure guarantee mentioned above can only be executed by TIM in
          the case of a relevant non compliance of NOKIA in its duties and
          responsibilities established in this Contract.

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     19.4 It is further agreed that the Performance Bonds shall be issued on
          first demand condition, irrevocable, unchangeable and unconditional,
          once observed the disposed in Section 19.3. above.

ARTIGO 20 IMPORTATION OF PRODUCTS

     20.1 NOKIA will be responsible, in accordance with the applicable
          legislation, for the importation of the Products, except when
          otherwise agreed with TIM. Should TIM decide to perform the
          importation of Products under its own name, NOKIA shall tender
          assistance to TIM under terms and conditions to be agreed between the
          Parties.

ARTIGO 21 INSURANCE

     21.1 NOKIA shall offer insurance for engineering risks, modality of
          installation and assembly of the System covering any damages caused by
          NOKIA, including damage caused by its subcontractors, or as a result
          of chance or "force majeur' events. This insurance coverage shall be
          issued by a prime insurance company and must cover any and all
          reasonable risks inherent in the Services and Products foreseen in the
          Scope of this Contract. The insurance shall provide coverage until
          Initial Acceptance or placement of the respective item of Equipment in
          Commercial Activation, whichever happens first. The insurance will
          also cover replacement costs for Products as well as for their parts
          and components, which will be delivered to TIM by NOKIA for the
          purpose of implementing the System.

     21.2 NOKIA shall also contract and maintain civil responsibility insurance
          to the value of R$ 2,500,000.00 (two million, five hundred thousand
          Reals), to cover material and/or personal damages caused by NOKIA, or
          its subcontractors, to TIM or third parties, during the implementation
          of the System, which will remain in force for the full term of this
          Contract.

     21.3 Any insurance eventually contracted by TIM will not, in any way, imply
          as reason for NOKIA not contracting the insurance foreseen in this
          Contract, and will not affect TIM's right to levy any fine, penalty,
          indemnity or responsibility on NOKIA, as foreseen in this Contract,
          even when for recovery of events.

     21.4 NOKIA is duty-bound to deliver to TIM, or to whoever is appointed by
          TIM, upon request, of copy of all insurance policies and/or
          certificates attesting to the contracting of said insurance.

     21.5 Coverage conditions for the policies must be analyzed and approved in
          advance by TIM, and cannot suffer any alteration during the term of
          this Contract, without prior consent from TIM, issued in writing.

     21.6 Presenting and obtaining approval from TIM for the insurance policy
          does not release NOKIA from its responsibility to indemnify TIM for
          the losses or damages it gives rise to, including hypothetically such
          an event exceeding the maximum indemnity value defined in the
          policies.

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     21.7 NOKIA shall present TIM with copies of the insurance certificates
          fully settled, as foreseen in items 21.1 and 21.2 above, immediately
          upon contracting and at each renewal.

ARTIGO 22 TAXES

     22.1 NOKIA will be fully accountable and responsible for any taxes or
          contributions required by municipal, state and federal governments, as
          well as by independent government agencies and class associations
          that, in the terms of the law, incur or come to incur upon this
          Contract or on the execution of the Scope, including fines and other
          charges.

     22.2 NOKIA shall deliver to TIM, whenever requested, proof of the
          above-mentioned payments of taxes and contributions.

     22.3 In the event of changes to taxation legislation, any expenses or taxes
          created, altered or eliminated, as well as the creation of additional
          dispositions after date of signature of this Contract affecting the
          contracted prices, will result in their reassessment, in the
          subsequent corresponding payments.

     22.4 Should TIM import Products directly, the payment of duties and taxes
          and relevant expenses shall be undertaken by TIM.

     22.5 For clarification purposes, the Services to be performed by NOKIA
          shall not be considered cession of labor or contractor events in
          accordance with the terms respectively foreseen in Article 31st,
          paragraph three of Federal Law no. 8,212/1991.

          22.5.1 Should TIM be charged with lack of retention of the
                 contributions to the National Social Security Institute
                 (Instituto Nacional de Seguridade Social - INSS) stemming
                 from item 22.5. above, NOKIA will be mandated to reimburse
                 TIM for the corresponding sum, with no loss from fines or
                 interest charges eventually imposed on TIM.

          22.5.2 In the event of occurrence of the disposed in item 22.5.1.
                 above, TIM will unequivocally notify NOKIA of the fact, by
                 way of written communication, by letter or facsimile, in the
                 form foreseen in this Contract, in due time for NOKIA to be
                 able to, within the legal time frame, file the corresponding
                 defense, contestation or embargo.

ARTIGO 23 PENALTIES

     23.1 Penalties Imposed by ANATEL

          23.1.1 NOKIA will indemnify TIM for the value of any penalties imposed
                 on TIM by ANATEL in relation to the absence of any Product
                 certification as well as any non-compliance with the
                 technical requirements established by ANATEL for the
                 referred Products.

     23.2 Penalties for Delay in Payments

          23.2.1 Should TIM delay payments owed to NOKIA described in this
                 Contract, after reception of the due notice send by NOKIA,
                 TIM shall pay interest for every day outstanding counted
                 from the due date to the date the payment is made, which
                 corresponds to:

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               (A)  Up to 30 (thirty) days late, 105% of the CDI (Interbank
                    Deposit Certificate - Certificado de Deposito Interbancario)
                    applicable for the total outstanding period on the value
                    owed, calculated on a pro rata die basis;

               (B)  After the 31st (thirty-first) day and up to the 60th
                    (sixtieth) day outstanding, 110% of the CDI (Interbank
                    Deposit Certificate - Certificado de Deposito Interbancario)
                    applicable for the total outstanding period on the value
                    owed, calculated on a pro rata die basis; and

               (C)  After the 61th (sixty-first) day outstanding, 110% of the
                    CDI (Interbank Deposit Certificate - Certificado de Deposito
                    Interbancario) applicable for the total outstanding period
                    on the value owed, calculated on a pro rata die basis.

          23.2.2 Any partial payment made shall, first, be used to cover the
                 accumulated interest, where applicable, and following this,
                 to cover the value of the principal owed. For clarification
                 purposes, the duty of interest payment shall be addressed
                 without any loss to other rights available and entitled to
                 NOKIA in accordance with this Contract.

          23.2.3 Should TIM not make the payment owed for more than 30 (thirty)
                 days, NOKIA, after written notification to TIM, shall be
                 entitled, at its sole discretion, to suspend delivery of
                 Products and the rendering of Services (including warranty
                 Services related to the Products whose payments are
                 outstanding) up to the moment where said payments are made.

          23.2.4 In case of delay in payments foreseen in Section 8.13, NOKIA
                 will be liable to the application of the interest rates
                 defined in Sub-Section 23.2.1 above on the value owed.

     23.3 General Dispositions Applicable to the Penalties foreseen in Sections
          23.4 and 23.5.

          23.3.1 The Parties expressly agree that the compensatory fines
                 foreseen in this Article, as well as their payment, do not
                 waive any obligations by NOKIA, that will remain valid until
                 they are fully addressed, notwithstanding the payment of any
                 fines levied.

          23.3.2 In case of delay caused by "force majeur" event, no penalty or
                 indemnity related to this Contract will be owed by NOKIA for
                 the delay caused by such events. In these cases, NOKIA shall
                 make the best effort in annulling the effects of any and all
                 'force majeur' events, likewise so shall TIM make every
                 effort in supporting measures taken to this end. Should the
                 'force majeur' event persist for over 60 (sixty) days, TIM
                 will be entitled to total or partial termination of this
                 Contract, without any onus on TIM in relation to NOKIA,
                 except for the payment, by TIM, of any outstanding sums for
                 Products and Services already supplied by NOKIA, in the
                 event there are any, in accordance with the terms and
                 conditions provided for in this Contract.

          23.3.3 The terms and conditions foreseen in Article 23 consist in the
                 sole reparation owed in relation to the delay in the
                 delivery of Products and Services, with no additional
                 indemnity payments being owed, except in cases where the
                 delay results from severe failure or intent on NOKIA's part.

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          23.3.4 Should it be impossible or in case of impediment, for NOKIA to
                 perform delivery for reasons solely ascribable to TIM, the
                 terms defined in Attachment 10 - Demand Planning shall be
                 extended for the same period of delay caused by TIM.

23.4     Penalties for Delay in Delivery

          23.4.1 NOKIA shall deliver Products and render Services in accordance
                 with the Schedule of delivery, installation, testing and
                 acceptance of Products and Services in accordance with the
                 date(s) specified in the Schedule. Should NOKIA delay in
                 delivering Products and rendering Services, NOKIA shall
                 compensate TIM for said delay by way of a compensatory fine.
                 The procedures for the calculation of these fines are
                 defined in Article 23.

          23.4.2 If, due to facts solely ascribable to NOKIA, Products and
                 Services are not delivered to TIM duly integrated, by the
                 dates foreseen in the Schedule, or in so far as those
                 Products that are not an object of integration on the
                 delivery date(s) specified in the Schedule, TIM will be
                 entitled to claim payment of penalties by NOKIA defined as
                 follows:

                 (A)  For each Site, 0.29% (zero point two nine percent) of the
                      Site Value, as defined in the respective Purchase
                      Order(s), for those with delays in excess of 14
                      (fourteen) days, for each day of delay in meeting the
                      Purchase Order(s), in accordance with the Schedule
                      agreed between the Parties, to the maximum value of 10%
                      (ten percent) of the Site Value mentioned above;

                 (B)  For all other items, 2% (two percent) of the price of
                      the item in delay, as defined in the respective purchase
                      order, including service charges linked to them, where
                      applicable, for every full week of delay, counted from
                      14 (fourteen) days after non-compliance with the terms
                      of the purchase order in accordance with the schedule
                      agreed between the parties, to the maximum value of 10%
                      (ten percent) of the price for the item in delay,
                      including any service charges stemming from this
                      situation, where applicable.

          23.4.3 If the maximum penalty value is reached, TIM will be able to,
                 by way of written notice, demand that NOKIA meet its
                 obligations in relation to the late Products within a
                 specified time frame, no shorter than 7 (seven) working
                 days. This term shall be defined by TIM, at its sole
                 discretion, taking into account any reasonable technical
                 condition and/or other relevant condition that might
                 influence this. Should NOKIA not meet its obligation within
                 this time frame, TIM will be entitled to rescind immediately
                 this Contract by way of the written notification to NOKIA
                 according to the provisions of Article 24, with no loss of
                 NOKIA's responsibilities in relation to the other penalties
                 and liabilities according to the terms and conditions
                 defined in this Contract.

          23.4.4 Acceptance by TIM of extension of deadlines to be met by NOKIA
                 will not release NOKIA from the penalties applicable for the
                 delay in delivery of Products or rendering of Services.

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     23.5 Penalties for not Meeting Support and Maintenance schedules

          23.5.1 NOKIA shall deliver support and maintenance Services for the
               Equipment according to the terms and conditions to be defined in
               the Care contract to be signed between the Parties. In the event
               that, on the date of signature of this Contract, the Parties
               still have not signed said contract, NOKIA shall deliver such
               support and maintenance Services to TIM under the same terms and
               conditions foreseen in the Care contract already signed between
               TIM CELULAR S.A. and NOKIA DO BRASIL LTDA. on October 09th 2002,
               until the Care contract object of this Sub-Section is signed,
               with NOKIA being, in both cases, liable to the penalties foreseen
               in said instruments.

ARTIGO 24         TERMINATION OF THE CONTRACT

     24.1 TIM shall be entitled to rescind this Contract if NOKIA, after expiry
          of the term granted by TIM, by way of written notice and that cannot
          be shorter than 60 (sixty) days, does not solve any of the
          irregularities described below:

          (A)  not meeting or addressing any relevant obligation of this
               Contract;

          (B)  total or partial cession of rights and obligations stemming from
               this Contract without prior consent in writing by TIM;

          (C)  not fulfilling Purchase Orders placed by TIM and accepted by
               NOKIA in relation to the obligations defined in this Contract and
               during its execution;

          (D)  evidence, at any point in time, of the lack of technical,
               financial or managerial capacity to fulfill the Scope of this
               Contract; or

          (E)  declaration of legal liquidation, declaration of bankrupcy, or
               concession of chapter 11 bankrupcy.

     24.2 In the event of termination of this Contract based on any of the items
          defined above in Section 24.1, NOKIA will not be entitled to any form
          of indemnity, being only entitled to the payment for the Products or
          Services that, on the date of termination of the Contract, have
          already been delivered and/or rendered (as the case may be) and
          accepted (where applicable), with no loss to TIM's right to deduct
          from any of above defined payments any and all penalties imposed on
          NOKIA in accordance with this Contract and with no loss to the
          responsibilities or possible losses and damages as described in this
          Contract.

     24.3 NOKIA will be entitled to rescind this Contract should TIM, after
          expiry of the term granted by NOKIA by way of written notice, and that
          cannot be shorter than 60 (sixty) days, not solve any of the
          irregularities described below (as long as these are effective):

          (A)  not meeting or addressing any relevant obligation of this
               Contract;

          (B)  declaration of legal liquidation or declaration of bankruptcy by
               TIM;

          (C)  decision, on TIM's part, to suspend the activities included in
               the Scope of the Contract, for a period longer than 180 (one
               hundred and eighty) days, except in case of 'force majeur'
               events.

     24.4 In the event of termination of this Contract based on any of the items
          described above in Section 24.3, NOKIA will be entitled to:

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          (A)  Receive from TIM the prices of Products sent and of the Services
               already rendered by the effective termination date for this
               Contract, as long as the Products and Services are compliant with
               the Technical Specifications defined in this Contract.

          (B)  In the case of partially manufactured Products and partially
               rendered Services before the effective termination date for this
               Contract, (i) NOKIA will be entitled to receive from TIM, should
               it opt for not fulfilling pending Purchase Order(s), any and all
               reasonable costs incurred and duly proven by NOKIA in relation to
               any pending Purchase Order issued by TIM in accordance with the
               terms and conditions of this Contract, such as, but not limited
               to, any equipment, material or service already purchased by NOKIA
               from third parties or people involved in addressing said Purchase
               Order; OR (ii) TIM will be entitled to chose fulfilling the Scope
               of these Purchase Order(s), with, in this case, advance payment
               having to be made to NOKIA for the full value of the Purchase
               Order, in case of point.

     24.5 This Contract can be rescinded by mutual agreement between the Parties
          or in the event that the authorization issued by ANATEL is revoked for
          reasons not ascribable to either Party. Should this be the case, there
          will be no onus on either of the Parties in relation to the other.
          Notwithstanding, NOKIA will be entitled to the payment for Products
          and Services effectively delivered and/or rendered (as the case may
          be) in accordance with the provisions of this Contract, up to the
          effective termination date for this Contract.

ARTIGO 25 'FORCE MAJEUR' AND CHANCE EVENT

     25.1 None of the Parties to this Contract is accountable for not meeting or
          addressing its obligations or duties, according to terms and
          conditions of this Contract, or of any Purchase Order for Equipment or
          Services performed in compliance with this Contract due to any cause
          beyond its control, in the terms foreseen in Article 393 of the Civil
          Code.

     25.2 The occurrence of 'force majeur' or chance events, as per Article 393
          of the Civil Code, that cause or might come to cause the suspension of
          this Contract for longer than 180 (one hundred and eighty) days shall
          be considered reason enough for termination of this Contract. In this
          case, the Parties shall negotiate and come to an agreement on its
          effects.

     25.3 Any case of 'force majeur' or chance events shall be communicated and
          proven, in writing, before the other Party, within 5 (five) days
          counted from the date of the event. The absence of communication
          within the term defined above will impair the right to claim 'force
          majeur' or chance events.

ARTIGO 26 CONFIDENTIALITY

     26.1 The Parties, their Associates, employees and subcontractors must not
          disclose any document or information related to the Scope of this
          Contract. Disclosure and/or reproduction, whether total or partial, of
          any privileged information, or any information belonging to this
          Contract, or of any detail of its progress will be made only under
          prior written consent from the other Party. The obligations foreseen
          in this Article 26 shall prevail for 5 (five) years counted from the
          date of termination for this Contract.

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     26.2 Each Party (henceforth called "Receiving Party") shall maintain any
          and all information supplied by the other Party (henceforth called
          "Supplying Party") in the form of the strictest secrecy and may not
          disclose it to third parties without prior consent, in writing, from
          the Supplying Party. Such information may not be used by the Receiving
          Party for any purpose other than the objectives stated by this
          Contract. The above-described obligations are not applicable to any
          information that:

          (A)  Is in the public domain at the time of its disclosure, or that
               later comes into the public domain for reasons other than ones
               that can be attributed to the Receiving Party;

          (B)  Was known by the Receiving party before its disclosure by the
               Supplying Party, as attested by written records belonging to the
               Receiving Party produced contemporarily;

          (C)  Is supplied to the Receiving Party by third parties that did not
               obtain said information, directly or indirectly, from the
               Supplying Party and are not subject to any obligation of
               confidentiality;

          (D)  Is at any point in time drafted independently by the Receiving
               Party as attested by written records produced contemporarily;

          (E)  Is expressly authorized, in writing, by the Supplying Party; or

          (F)  Is mandated by law, legal order or government administration
               agency with jurisdiction over any of the Parties, to be disclosed
               (and in this case the Receiving Party shall issue advance notice
               of its disclosure in time reasonably practicable, and that will
               occur under the maximum protection for the secrecy level
               available).

     26.3 The Parties are aware that each one is party to an organization
          composed of multiple legal entities in different jurisdictions, and
          that it may be necessary or suitable to supply Information to the
          Associated companies. For this reason, each Party (both in the
          condition of Supplying Party and Receiving Party in accordance with
          the definitions thereof contained in this document) agrees to the fact
          that:

          (A)  The Receiving Party may supply information to an Associated
               company, but only due to need, by the latter, to be aware of this
               Information in order to carry out the objectives foreseen in this
               Contract;

          (B)  Disclosure by or to an Associate company to one of the Parties of
               this Contract will be seen as disclosure by or to that Party, as
               applicable; and

          (C)  Each Party ensures the compliance to and adequate undertaking, on
               the part of its Associates, of the terms and conditions of this
               Article 26.

     26.4 The Information shall be considered property of the Supplying Party
          and the Receiving party shall, by way of written request made by the
          Supplying Party, return any and all information received, in tangible
          form, to the Receiving Party, or else destroy any such Information and
          copies thereof or documents containing the Information.

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     26.5 Each Party shall limit access to Information by its employees,
          representatives, contract workers or consultants for whom this access
          is deemed reasonably necessary or appropriate for undertaking
          fulfilling of this Contract adequately.

ARTIGO 27 ARBITRATION

     27.1 Any and all controversy, violation or claim arising from this
          Contract, that has not been agreed between NOKIA and TIM, shall be
          resolved by arbitration, in accordance with the rules and regulations
          of the International Chamber of Commerce (ICC) in force at that point
          in time, except where otherwise agreed by the Parties. The arbitration
          will take place in the city of Sao Paulo with 3 (three) arbitrators,
          to be appointed in compliance with said Regulations. The arbitration
          will be carried out in Portuguese. The arbitral sentence will be final
          and binding on all Parties, and can be executed by any competent
          court. Notwithstanding the described above, in case of any controversy
          or claim mentioned above, (i) none of the Parties may initiate the
          arbitral proceedings before 30 (thirty) days counted from the moment
          that the Party impacted notifies the other about the controversy or
          claim, and (ii) for a period of 30 (thirty) days, the presidents of
          both Parties shall meet at least once at a mutually agreed venue, in
          Brazil, with effort in good faith towards solving the controversy or
          claim amicably.

     27.2 If the arbitration rules are occasionally remiss, these shall be
          complemented by Brazilian civil law, in particular the provisions
          related to Law No. 9,307 of September 23rd 1996 and the Civil
          Procedural Code.

     27.3 Each Party shall be liable for its own expenses, as well as any taxes
          or fees charged by the arbitrators, or by any public or private
          authority, for the execution of the arbitral sentence in carrying out
          the arbitral procedures. During the declaration of the pronouncement
          of the final decision by the arbitrators, the defeated Party shall
          then reimburse the other for all above-mentioned expenses, taxes and
          costs, including lawyers' fees, so long as they are deemed reasonable.

     27.4 The decision shall (i) be conceded and paid regardless of any taxes,
          deductions or compensation (except the applicable income tax); (ii)
          include interest counted from the date of non-compliance or any other
          form of violation of this Contract, up to the moment when the payment
          is made in full, calculated by the lowest CDI rate (Interbank Deposit
          Certificate - Certificado de Deposito Interbancario) prevalent at that
          point in time or by the maximum rate allowed by law; or (iii) be
          foreclosed within 30 (thirty) days counted from date of conclusion of
          the arbitration proceedings. The arbitral sentence shall be ratified
          in any competent court. Any and all costs, taxes or expenses imposed
          on applying the court's decision shall be charged to the Party
          resisting the application.

     27.5 There is nothing arranged in this Article 27 that might impede the
          Parties from seeking cautionary measures or filing actions in favor of
          meeting the obligations foreseen in this Contract, including
          settlement of pending and outstanding debts in the courts of the city
          of Sao Paulo, in the State of Sao Paulo.

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ARTIGO 28         ADDITIONAL DISPOSITIONS

     28.1 ALTERATIONS. Any and all modification made to this Contract shall be
          made in writing and signed by the legal representatives for the
          Parties.

     28.2 INDEPENDENT PARTIES. The relationship between the Parties is
          contractual in its nature, with any form of labor relations being
          inexistent between them. The Parties shall not be held responsible for
          any acts committed by the other Party or by its employees or powers of
          attorney.

     28.3 NOVATION. Abstention, by the contracting Parties, from any right or
          power granted to them by this Contract shall not imply in novation or
          waiver of any other right foreseen in this Contract, which may be
          practiced at any moment, except where otherwise agreed in writing by
          the Parties.

     28.4 MODIFICATION OF THE SYSTEM. After the Initial Acceptance, in order to
          perform any technical alteration or modification of the System, NOKIA
          shall inform TIM, with a minimum of 30 (thirty) days advance notice of
          its respective implementation, or in other terms defined between the
          Parties, in order for TIM to be able to approve and program the
          referred alteration, ensuring NOKIA and its representatives free
          access to its facilities to perform its contractual obligations.

     28.5 INVALID CLAUSES. In case any of the Articles of this Contract loses
          its effect before the law, the general validity of the Contract shall
          not be impacted. The Parties shall, in common agreement, replace the
          invalid Article with another one legally enforceable under the
          existing law, that will correspond as closely as possible to the
          object of the invalidated Article and the Scope of this Contract,
          within a maximum of 30 (thirty) days counted from the date of the
          above-mentioned declaration.

     28.6 NOTIFICATIONS. Any notification or other communication to be issued,
          in accordance with the terms of this Contract, to any of the Parties,
          must be done in writing and delivered personally, or else sent as
          postage-paid registered mail, and requested receipt, or by facsimile
          transmission with electronic confirmation receipt, to the following
          addresses (or to any other address or number supplied in writing, by
          one Party to the other, according to the terms of this Contract).

          To TIM:
          A/c Claudio Bastos
          Rua Fonseca Teles, 18
          Sao Cristovao - Rio de Janeiro - RJ
          Brasil - 20940-200

          To NOKIA:
          Nokia do Brasil Ltda.
          A/c Rob Arita
          Av. das Americas, 500, bloco 19, loja 108 Barra da Tijuca - Rio de
          Janeiro - RJ Brasil - 22640-200

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     28.7 TITLES OF THE ARTICLES. The titles used in the Articles of this
          Contract are used as mere reference, and shall not affect, in any way,
          the meaning or interpretation of this Contract.

     28.8 RULING LAW. THIS CONTRACT WILL BE RULED, INTERPRETED AND APPLIED IN
          ACCORDANCE WITH THE LAWS OF THE FEDERATED REPUBLIC OF BRAZIL. Whenever
          possible, each provision of this Contract shall be interpreted in such
          a way as to validate it under the applicable law, however, should any
          provision of this Contract come to be forbidden or become invalid
          under any jurisdiction, the remaining dispositions set out in this
          Contract will remain in full force and effect.

     28.9 Excepting Section 10.3 (Responsibilities) and Articles 16 (Software
          License Terms and Conditions), 17 (Intellectual Property Rights), 18
          (Technical Warranties), 23 (Penalties), 26 (Confidentiality), 27
          (Arbitration) and Section 28.8 (Ruling Law), which will remain binding
          between the Parties, through termination of this Contract, the Parties
          will not be entitled to any rights or obligations foreseen in this
          Contract, except for the accumulated rights and obligations existing
          at the moment of termination of the Contract, should there be any.

     28.10 LANGUAGE. The Parties to this Contract agree that it was negotiated
           and drafted in Portuguese, except in so far as a few of the Technical
           Specifications.

     28.11 This Contract and the Attachments in it mentioned constitute the full
           Contract between the Parties in relation to the Scope, and shall
           prevail over any proposition, whether verbal or in writing, prior
           negotiation or communication between the Parties relative to the
           object of the Contract. No modification, alteration or waiver shall
           be binding between the Parties except where placed in writing and
           signed by duly constituted and authorized representatives for both
           Parties.

The contracting Parties sign this instrument in 3 (three) copies of equal
content and form, through their legal representatives, in the presence of the
witnesses signing below.

                   Rio de Janeiro, October 2, 2003.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELPE CELULAR S.A.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELERN CELULAR S.A.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELEPISA CELULAR S.A.

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/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELECEARA CELULAR S.A.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELASA CELULAR S.A.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TELPA CELULAR S.A.

/s/ Jorge Firpo            /s/ Luis Roberto Antonik
-------------------------  --------------------------

                 TIM CELULAR S.A.

                /s/ Rob Arita Moreira
          --------------------------------
                 NOKIA DO BRASIL LTDA.
                 Rob Arita Moreira

Witnesses:

_______________________________             _______________________________
Name:                                       Name:
CPF:                                        CPF:

           Last page of the Supply Contract for Products and Services
                             between TIM and NOKIA.

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--------------------------------------------------------------------------------

                                  ATTACHMENT 1
                     LIST OF PRICES, DISCOUNTS AND VOUCHERS

    * represents omitted information, which is the subject of a request for
                       confidential treatment with the SEC

      Anexo I ao Contrato de Fornecimento de Produtos e Servicos Relativo a
                Implementacao do Sistema de Telefonia Movel GSM

                                                                             1/2

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--------------------------------------------------------------------------------

     *

      Anexo I ao Contrato de Fornecimento de Produtos e Servicos Relativo a
                Implementacao do Sistema de Telefonia Movel GSM

                                                                             2/2Exhibit 4.24

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       Operationalization Agreement bound to the Goods and Service Supply
            Agreement related to the Provisioning and Implementation
                        of a GSM Mobile Telephone System

                  CONTRACT FOR THE SUPPLY OF GOODS AND SERVICES

                  RELATED TO THE SUPPLY AND IMPLEMENTATION OF A
                           GSM MOBILE TELEPHONE SYSTEM

                                 By and Between

                                  MAXITEL S.A.

                                  TIM SUL S.A.

                                TIM CELULAR S.A.

                               TELPE CELULAR S.A.

                               TELERN CELULAR S.A.

                              TELEPISA CELULAR S.A.

                             TELECEARA CELULAR S.A.

                               TELASA CELULAR S.A.

                               TELPA CELULAR S.A.

                                       and

                         ERICSSON TELECOMUNICACOES S.A.

                   ERICSSON SERVICOS DE TELECOMUNICACOES LTDA

    * REPRESENTS OMITTED INFORMATION, WHICH IS THE SUBJECT OF A REQUEST FOR
                      CONFIDENTIAL TREATMENT WITH THE SEC

                                                                            1/42

<PAGE>
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       Operationalization Agreement bound to the Goods and Service Supply
            Agreement related to the Provisioning and Implementation
                        of a GSM Mobile Telephone System

   CONTENTS

1. DEFINITIONS                                                                 5

2. CONTRACT DOCUMENTS                                                          8

3. CONTRACT OBJECT                                                             8

4. PRICES                                                                      9

5. EXCHANGE RATE VARIATION AND READJUSTMENT                                   11

6. ECONOMICAL-FINANCIAL BALANCE                                               13

8. PAYMENT PROCEDURES                                                         14

9. PAYMENT CONDITIONS                                                         15

10. DELAYED PAYMENTS                                                          16

11. DEDUCTION/WITHHOLDING                                                     16

12. COMPLIANCE WITH BNDES NORMS                                               17

13  LOCAL PRODUCTION                                                          18

14. HINDERED SITES AND/OR SITES IMPOSSIBLE TO BE USED FOR REASONS NOT
    IMPUTABLE TO THE CONTRACTED PARTY                                         18

15. PLANT TESTS AND INSPECTIONS                                               19

16. PACKAGING                                                                 19

17. OWNERSHIP AND HAZARD                                                      19

18. TAXES                                                                     20

19. OBLIGATIONS OF THE CONTRACTED PARTY                                       20

20. OBLIGATIONS OF THE CONTRACTING PARTY                                      23

21. PROJECT MANAGEMENT                                                        23

22. MILESTONES                                                                24

23. PROGRESS, INSPECTIONS AND TESTING REPORT                                  24

24. ACCCEPTANCE                                                               25

25. PENALTIES                                                                 25

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26. TECHNICAL WARRANTY                                                        28

27. SPARE PARTS                                                               31

28. PERFORMANCE BOND                                                          31

29. INSURANCE                                                                 32

30. INDEMNITIES AND LIABILITY LIMITATION                                      33

31. FORCE MAJEURE                                                             34

32. RIGHTS OF INTELLECTUAL PROPERTY                                           34

33. LICENSE FOR SOFTWARE AND DOCUMENTATION USE                                35

34. INFRINGEMENTS TO RIGHTS OF INTELLECTUAL PROPERTY                          36

35. SUBCONTRACTING                                                            38

36. CONFIDENTIALITY                                                           38

37. INTERCEPTION                                                              39

38. AGREEMENT EFFECTIVE DATE AND DURATION                                     39

39. TERMINATION                                                               40

40. JOINT RESPONSIBILITY                                                      41

41. NOTIFICATIONS                                                             41

42. GENERAL PROVISIONS                                                        41

43. ARBITRATION                                                               43

                                                                            3/42
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            Agreement related to the Provisioning and Implementation
                        of a GSM Mobile Telephone System

On the one part,

A) MAXITEL S. A., a private corporation having its registered office at Av. Raja
Gabaglia 1781, 13th floor, Bairro Luxemburgo, in the city of Belo Horizonte,
State of Minas Gerais, enrolled with the CNPJ under card No. 01.009.686/0001-44
and with the State Registry under card No. IE 062.795318.00-05, hereinafter
individually called "MAXITEL";

B) TIM SUL S.A. (the new corporate name of TELEPAR CELULAR S.A., a company that
incorporated TELESC CELULAR S.A. and CTMR CELULAR S.A.), a corporate body having
its registered office at Rua Comendador Araujo 299, Downtown, in the city of
Curitiba, State of Parana, enrolled with the CNPJ under card No.
02.332.397/0001-44 and with the State Registry under card No. IE 9015031848,
hereinafter individually called "TIM SUL";

C) TELPE CELULAR S.A., a private corporation having its registered office at Av.
Conde da Boa Vista 800, 2nd floor, Boa Vista, in the City of Recife, State of
Pernambuco, enrolled with the CNPJ under card No. 02.336.993/0001-00 and with
the State Registry under card No. IE 18.001.024.3582-4;

TELERN CELULAR S.A., a private corporation having its registered office at Rua
Prudente de Moraes 2700, rooms 8 and 9, Barro Vermelho, in the City of Natal,
State of Rio Grande do Norte, enrolled with the CNPJ under card No.
02.332.973/0001-53 and with the State Registry under card No. IE 20.079.764-6;

TELEPISA CELULAR S.A., a private corporation having its registered office at Av.
Frei Serafim 1989, Downtown, in the City of Teresina, State of Piaui, enrolled
with the CNPJ under card No. 02.368.412/0001-04 and with the State Registry
under card No. IE 19.44.0920-1;

TELECEARA CELULAR S.A., a private corporation having its registered office at
Av. Barao de Studart 2575, Dionizio Torres, in the City of Fortaleza, State of
Ceara, enrolled with the CNPJ under card No. 02.338.114/0001-71 and with the
State Registry under card No. IE 06.998.161-2;

TELASA CELULAR S.A., a private corporation having its registered office at Av.
da Paz 2262, Sobral, in the City of Maceio, State of Alagoas, enrolled with the
CNPJ under card No. 02.328.592/0001-09 and with the State Registry under card
No. IE 240.931.43-2;

TELPA CELULAR S.A., a private corporation having its registered office at Av.
Presidente Epitacio Pessoa 3160, Tambauzinho, in the City of Joao Pessoa, State
of Paraiba, enrolled with the CNPJ under card No. 02.322.271/0001-99 and with
the State Registry under card No. IE 16.119.131-2;

Hereinafter collectively referred to as "TIM NORTHEAST CARRIERS"; and

D) TIM CELULAR S.A. (the new corporate name of PORTALE SAO PAULO S.A., a company
that incorporated PORTALE RIO NORTE S.A. and TIM CELULAR CENTRO SUL S.A.), a
private corporation having its registered office at Av. Giovanni Gronchi 7143,
Vila Andrade, in the City of Sao Paulo, State of Sao Paulo, enrolled with the
CNPJ under card No. 04.206.050/0001-80, hereinafter called "TIM CELULAR";

herein represented as provided in its Articles of Incorporation, hereinafter
collectively referred to as "Contracting Party"; for reference purposes only and
without prejudice to each being deemed autonomous and independent contractors;

And on the other part,

E) ERICSSON TELECOMUNICACOES S.A., a corporation having its office at Rua Maria
Prestes Maia 300, in the City of Sao Paulo, State of Sao Paulo, enrolled with
the CNJP under card No. 33.067.745/0001-27; and

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F) ERICSSON SERVICOS DE TELECOMUNICACOES LTDA., a corporation having its office
at Rua Maria Prestes Maia 300, 4th floor, Left Wing, in the City of Sao Paulo,
State of Sao Paulo, enrolled with the CNJP under card No. 03.619.317/0001-07;

herein represented as provided in its Articles of Incorporation, hereinafter
collectively referred to as "Contracted Party".

Contracting Party and Contracted Party, hereinafter individually called "the
Party", or collectively referred to as "the Parties".

Whereas:

(i)   Contracting Party has been licensed by the National Telecommunications
      Agency - Anatel to operate the Personal Mobile Service (SMP) all over
      Brazil, according to the areas of carrier operations provided under
      letters "A", "B", "C" and "D" of the preamble to this Contract;
(ii)  the carriers contemplated in letters "A", "B" and "C" of the preamble to
      this Contract have submitted a request for quotation to Contracted Party,
      as substantiated in the Request for Quotation (RFQ) No. RFQ-NW-089/02, for
      the supply of a Mobile System under the GSM Technology 1800 MHz, whose
      negotiated terms and conditions shall equally apply to TIM CELULAR, except
      if otherwise provided in this Contract;
(iii) in reply to the above-mentioned RFQ, Contracted Party submitted to
      Contracting Party, on November 28, 2002 its Proposal No. W2194, which was
      subjected to successive negotiations between the Parties, with the supply
      of "Core" equipment for all locations mentioned in the RFQ being
      eventually awarded to Contracted Party, as well as "BSS" equipment for the
      States of Minas Gerais, Sergipe and Bahia together with all related
      services for both "Core" and "BSS"; and
(iv)  on November 27, 2002 TIM CELULAR and Contracted Party have executed a
      Contract for the Supply of Goods and Services (Contract for the Supply of
      a GSM Mobile Telephone System in Brazil) ("Previous Contract") for the
      supply of "Core" and "BSS" equipment and related services. Pursuant to
      negotiations between them, TIM CELULAR and Contracted Party have agreed
      that all Purchase Orders placed by TIM CELULAR as of the date when this
      Contract was executed, as provided in subclause 38.1.1, shall be ruled by
      this Contract rather than by the Previous Contract, which will remain in
      full force and effect for all Purchase Orders issued before this date.

Now, therefore, the Parties have agreed to enter into the present Contract for
the Supply of Goods and Services in relation to the supply and implementation of
a GSM mobile telephony system ("the Contract"), under the following terms and
conditions:

--------------------------------------------------------------------------------

1. DEFINITIONS

1.1. The terms below shall have the meaning given such terms in this Clause and
     in the whole Contract and its Annexes

Affiliated - means any subsidiary affiliated to the head office of Contracting
Party and/or Contracted Party.

Contract Amendment - means a document duly signed by the legal representatives
of the Parties, whereby any amendments, additions or modifications in Contract
terms and conditions shall be an integral part of the Contract.

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Software Update - means any corrections introduced in the Software on basis of
failure reports issued by Contracted Party and users, to be issued in the form
of Software Updates by Contracted Party. A Software Update shall contain the
appropriate load file, implementation instructions and user documentation.

Goods - means the Hardware, Spare Parts, Documentation and Software to be
supplied under this Contract.

Commissioning - means all services related to Network Element integration;

Contract - means this Contract executed between Contracting Party and Contracted
Party, including all Annexes incorporated into the mentioned Contract,
Applicable Document, as well as any Contract Amendments.

Date of Acceptance - means the date(s) on which the System or Part of the System
shall be effectively accepted or deemed accepted as provided in Clause 24.

Date of Completion - means the date(s) specified in the Implementation Plan
under which the System or Part of the System, as the case may be, shall be
implemented and deemed ready to be approved in System tests (or in a test of
System expansion, when applicable), taking into account all appropriate
expansions or extensions.

Base-Date - November 11, 2002.

Documentation - means all relevant or required documentation for System
Implementation, including but not limited to technical manuals, designs and
drawings.

Network Element - means any Goods delivered and/or installed and/or tested as a
stand-alone part with a specific functionality within a GSM system, such as but
not limited to: MSC (Mobile Switching Centre), HLR (Home Location Register), VLR
(Visitors Location Register), BSC (Base Station Controller), BTS (Base
Transceiver Station), AUC (Authentication Centre), OMC (Operation and
Maintenance Centre), GSM/PSTN Interface, GSM/PLMN Interface, SMS (Short Message
System), VMS (Voice Mail System), BGw/SOG Billing System, Microwave Backbone
etc.

Contracted Party Equipment - means the tooling, instrumentation, test equipment
and any other item belonging to or acquired by Contracted Party or its
subcontractors as required to perform under the Contract and not intended to be
incorporated into the System or otherwise acquired by Contracting Party.

Technical Specification - means the System technical and functional
specification, as specified in Annex 4.

Hardware - means all materials and equipment items included in the System, as
specified in Annex 1.

Implementation - means the installation and Acceptance Tests to be carried
out under the Contract.

In Service Certificate - a Certificate issued by Contracted Party to notify
Contracting Party that the Site has been initially accepted under conditions
that are equivalent to TAI (Statement of Initial Acceptance). Such document
shall have the same effectiveness as the TAI and shall comply with the
provisions in Annex 5.

Item - means any item related to Hardware, Software, Spare Parts, Services,
Documentation or test equipment.

Lead Times - means the established term for the delivery or Implementation of an
Item, as provided in Annex 3.

Place(s)/Site - means the effective location(s) where the System or Part of the
System shall be implemented.

Notification of Final Acceptance (DAF) - means the Certificate issued by
Contracted Party to notify Contracting Party that the Site has been finally
accepted under conditions that are equivalent to TAF (Statement of Final
Acceptance). Such document shall have the same effectiveness as the TAF and
shall comply with the provisions in Annex 5.

Part of the System - means any System functional unit that, by being Implemented
in a specific site or otherwise, is clearly separated from other parts of the
System.

Spare Parts - means any replacement Items as defined in Annex 5 and specified in
Annex 1.

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Purchase Orders - means a Contracting Party express request, as set forth in
Annex 3, for the acquisition of Goods and/or Services.

Implementation Plan/Schedule - means the schedule agreed by the Parties for the
Implementation of the System or Part of the System.

Failure Report - means the report(s) to be submitted by Contracting Party to
Contracted Party for purposes of indicating a failure related to the operation
of a Software program included in the System. Such reports shall comply with the
pattern set forth in Annex 4.

Service - means Implementation and Commissioning

System - means the Hardware and Software to be supplied and implemented under
this Contract.

BTS Site - means the Goods and Services to be delivered by Contracted Party to
any specific site, in accordance with Annex 1 to this Contract.

SMC - means Cellular Mobile Service, as defined by Anatel.

SMP - means Personal Mobile Service, as defined by Anatel.

Software - means any computer, module or software packet program or any part
thereof in the same binary code and included in the System as specified in Annex
1.

Software Bound to License Increments ("Pay-as-it-grows") - means the Software
for which the acquisition of license increment is contingent on Contracting
Party needs.

TAF - means the Statement of Final Acceptance to be issued by Contracting Party
in accordance with Annex 5.

TAI - means the Statement of Initial Acceptance to be issued by Contracting
Party in accordance with Annex 5.

Territory - means, in this Contract, the Federative Republic of Brazil.

Acceptance Tests - means all tests and inspections to be made according to the
procedures specified in Annex 5.

Update - See "Software Update".

Upgrade - means a Software update containing new significant features or
applications.

1.2. Other terms in capital letters used in this Contract shall have the
meanings respectively given to them elsewhere in this Contract.

1.3. Words used in the singular number only shall also include the plural number
and vice versa, as required by the context.

1.4. The headings or titles in this Contract are used for purposes of
convenience and identification only and are not intended to describe, construe,
define or limit the scope, extent or intent of this Contract or of any
provisions thereof.

2. CONTRACT DOCUMENTS

2.1 The following sections shall be an integral part of the present Contract:

Annex 1 - List of Unit Prices, Discounts, Vouchers and Incentives

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Annex 2 -Responsibilities Matrix

Annex 3 - Procedures for Issuing Purchase Orders, Confirmation, Amendment and
Lead-Times

Annex 4 - Technical Specifications

Annex 5 - Test and Acceptance Procedures

Annex 6 - Performance Bond

Annex 7 - Applicable Documentation

2.2. Without prejudice to both Contracting Party and Contracted Party, the
above-listed Annexes may be modified independent from each other or as a whole,
always subject to the express consent of both contracting parties, as provided
in subclause 42.1.

2.3. All documents referred to in the present Clause 2 are deemed sufficient, in
complement to this Contract, to define their extent and intent and, therefore,
govern the adequate performance of the contracted object.

2.4. In case of conflict and/or discrepancy between the Contract and its
Annexes, the provisions in the Contract shall prevail over the provisions in the
Annexes, except as regards any subject matter of a technical nature clearly
defined in such Annexes.

         2.4.1. The Parties hereby agree that, in case of conflict and/or
         discrepancy between the provisions in Annexes 1, 2, 3, 4, 5, 6 and
         those in Annex 7, the terms and conditions provided in those Annexes
         shall prevail over the provisions in Annex 7.

         2.4.2. In case of any doubt arising out of Contract performance, this
         shall be so settled as to meet the necessary specifications for the
         good performance of the Contract object.

3. CONTRACT OBJECT

3.1. The present Contract sets forth the obligation of Contracted Party to
supply the Goods and Services to Contracting Party in accordance with the
Purchase Orders issued by Contracting Party and accepted by Contracted Party.
Contracting Party shall only be committed in relation to Goods and Services
described in Purchase Orders that are duly issued at its sole discretion and
accepted by Contracting Party, with no implication whatsoever as regards the
estimated values for the issuing of the Performance Bond provided in Clause 28.
Any other document issued by Contracting Party containing a list of Goods and
Services and related quantities shall be equally deemed a mere estimate not
implying any obligation or responsibility on the part of either Contracted Party
or Contracted Party.

3.2. The Parties hereto mutually agree that there will be no commitment between
them to reimburse any expense possibly incurred by the other Party as a result
of this Contract execution, unless otherwise provided in this Contract.

3.3. The supply of Goods and the rendering of Services shall only be started by
Contracted Party against the issue of the related Purchase Orders by Contracting
Party and their acceptance by Contracted Party. According to the relevant
Purchase Order duly accepted and in conformity with the high standards to be
expected from a technically qualified, experienced and competent vendor,
Contracted Party shall supply, install, commission and test the System,
including its Hardware, Software, Spare Parts and Services, as provided in this
Contract.

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3.4. The total Contract value shall be defined by the summation of all Purchase
Orders accepted by Contracted Party.

3.5. Contracting Party may temporarily suspend those activities whose Purchase
Orders have already been submitted, subject to the procedure set forth in Annex
3.

3.6. Contracted Party shall be liable for all necessary expenses incurred in
performing the object of the present Contract, including without limitation the
housing, meals and transportation of its employees, legal representatives,
assigns or subcontractors. In no event shall Contracting Party be liable for the
aforementioned expenses, except as provided in subclause 4.4.1 of this Contract
and unless otherwise agreed between the Parties.

3.7. The Parties agree that Contracting Party may request additional Hardware,
Software, Services, Documentation and Spare Parts of Contracted Party
manufacture not included in Annex 1, in which case Contracted Party shall supply
such additional Items in compliance with the provisions in this Contract in
accordance with specific price quotations and delivery terms and provided such
Items are related to the object of this Contract. In the event of any additional
Item having to be imported, Contracting Party hereby acknowledges that the
necessary conditions to meet FINAME/BNDES requirements might not be met.

4. PRICES

4.1. *

4.2. *

4.3. *

4.4. *

         4.4.1 *

4.5. *

         4.5.1 *

         4.5.2 *

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         4.5.3 *

         4.5.4 *

4.6 *

5. EXCHANGE RATE VARIATION AND READJUSTMENT

5.1 *

5.2 *

5.3 *

5.4 *

         5.4.1 *

5.5 *

       5.5.1 *

       5.5.2 *

5.6 *

       5.6.1 *

6. ECONOMICAL-FINANCIAL BALANCE

6.1. All prices and commercial conditions established in this Contract are based
on the economical-financial conditions prevailing on the Base Date. Therefore,
in the event of occurring substantial changes in such conditions that would
affect the Contract economical-financial balance, the Parties hereto shall have
to negotiate such ways and means to maintain the original Contract balance as to
ensure a fair relationship between them.

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7. Invoicing

7.1. Each sales bill/invoice issued by Contracted Party shall contain the
following information:

(i) The Purchase Order number and date and the reference of the relevant Item in
the Purchase Order;

(ii) The Item from the List of Unit Prices and its corresponding value;

(iii) The FINAME Code Number, if applicable to the acquired Item and if already
published;

(iv) The Contracting Party internal order number, provided that expressly and
timely notified to Contracted Party; and

(v) the Site corresponding to the acquired Goods or to the Services rendered
when indicated by Contracting Party in the Purchase Order.

7.2. In the event of occurring a delayed submission of the sales bill/invoice
and/or errors being identified therein, the following procedure shall be
adopted:

(a) Should it be possible to correct the sales bill/invoice submitted by
    Contracted Party through a letter of correction, then Contracting Party
    shall notify Contracted Party of such correction within five (5) workdays
    counted from the date when the sales bill/invoice was received, and
    Contracted Party shall deliver the mentioned letter to Contracting Party
    within three (3) workdays from the date the Contracting Party request was
    received.

(b) In the event of not being possible to correct the sales bill/invoice
    submitted by Contracted Party by means of a letter of correction therefore
    requiring the submission of a new sales bill/invoice, then Contracting Party
    shall return the irregular sales bill/invoice to Contracted Party within
    five (5) days from the date it was received to enable a new document to be
    issued.

7.3. The new sales bill/invoice submitted by Contracted Party shall be paid by
Contracting Party according to the payment terms set forth in subclause 9.1 of
this Contract and in accordance with the object of the mentioned sales
bill/invoice.

7.4. The detection of errors in sales bills/invoices, the absence of documents
and/or errors or delays in the information submitted by Contracted Party shall
in no event imply the payment of any penalty whatsoever by Contracting Party.

7.5. Contracted Party shall reimburse Contracting Party for any penalty applied
by tax authorities or by any other competent authority as a result of the
submission of an irregular sales bill/invoice, or for failing to submit it,
being liable for any and all cost/loss arising out of such event.

8. PAYMENT PROCEDURES

8.1. All payments shall be credited to a bank account specified in writing by
Contracted Party.

8.2. The information regarding the bank account specified by Contracted Party
shall be updated by providing Contracting Party with a fifteen (15) days advance
notice whenever the need will exist for Contracted Party to modify the
information previously submitted to Contracting Party.

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8.3. Contracting Party shall not be liable for any fines for delayed payments
resulting from information incorrectly submitted by Contracted Party in
connection with bank options.

8.4. The amount credited to Contracted Party's bank account, after being duly
available to Contracted Party, shall be deemed payment in full of all
obligations relating to the payment of the portions effected by Contracting
Party under the payment conditions set forth in Clause 9 of the present
Contract.

8.5. Except in case of advance payments made by Contracting Party, Contracted
Party will be notified by Contracting Party of the list of sales bills/invoices
covered by each payment, within thirty (30) days after being effected.

8.6. In the event of Contracted Party receiving any type of tax benefit directly
related to the Goods and Services under this Contract, Contracted Party shall be
responsible for complying with all applicable requirements to ensure that
Contracting Party will accrue the same aforementioned benefit, if so desired and
stated in writing.

9. PAYMENT CONDITIONS

9.1 Payments shall be effected by Contracting Party to Contracted Party in
accordance with amounts in DDP conditions (Incoterms 2000) specified in sales
bills/invoices, as follows:

9.1.1 *

         9.1.1.1  *

9.1.2 *

9.1.3 *

9.1.4 *

9.1.5 Additional Services

The payment terms for additional Services shall be formally agreed upon between
the Parties.

10. DELAYED PAYMENTS

10.1. Any delayed payment shall be updated at the rate of one hundred and ten
percent (110%) of the CDI (Interbank Deposit Certificate) over the amount in
delay, from its maturity date to the date payment is effected. In the event of
delayed payments being made by Contracting Party as provided in this subclause,
Contracted Party may, without prejudice to all other remedies, suspend its
performance under the Contract, in whole or in part, until the date when such
amounts are paid in full.

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10.2. In the event of occurring a delayed payment as provided in subclause 11.3,
Contracted Party shall be subject to the application of the delay charges
described in subclause 10.1 above, to be applied to the amount due.

11. DEDUCTION/WITHHOLDING

11.1 Contracting Party will authorize payments only against the submission by
Contracted Party of (i) the sales bill/invoice; and (ii) notarized copies of the
payroll indicating the employees of Contracted Party or subcontractors that are
rendering Services under this Contract, and of the documents of social security
acquittance with the INSS (National Social Security Agency) and FGTS (Employment
Security Fund) relative to the month immediately prior to the date when the
sales bill/invoice was issued. The documents mentioned under item (ii) shall be
submitted to Contracting Party on or before the twentieth (20th) day of the
month of the maturity date in question.

         11.1.1. Should Contracted Party fail to comply with the provision in
         subclause 11.1 above, Contracting Party shall be authorized to withhold
         one hundred percent (100%) of all payments due to Contracted Party,
         until the date when the corresponding obligation is fully complied with
         by Contracted Party, unless otherwise agreed by Contracting Party and
         Contracted Party.

11.2. Contracting Party may, at its sole discretion, withhold and/or deduct from
any payments due to Contracted Party:

(a) the amount of any applicable penalty as provided in this Contract;

(b) the amount of any damages caused by Contracted Party to Contracting Party
    arising out of this Contract;

(c) the costs related to insurance policies that will be the responsibility of
    Contracted Party under this Contract and that may have to be contracted or
    renewed by Contracting Party, provided that evidence is obtained that
    Contracted Party failed to comply with their respective obligations; and

(d) the amounts charged to Contracting Party as a result of labor or social
    security taxes or claims regarding obligations not complied with by
    Contracted Party under this Contract, or under the applicable legislation.

11.3. Contracting Party may deduct the amounts due by Contracted Party under
this Contract from any future payment. Should such amount exceed the value of
sales bills/invoices, Contracted Party shall pay the difference within sixty
(60) days counted from the date when the corresponding notice is received by
Contracting Party.

11.4. Prior to effecting any deduction and/or withholding any amount as provided
in this Clause 11, Contracting Party shall timely notify Contracted Party of
such deduction and/or withholding to be effected.

12. COMPLIANCE WITH BNDES NORMS

12.1. Contracted Party shall act in conformity with all relevant rules of the
National Bank for Economic and Social Development (BNDES), the compliance of
which will be required on the part of vendor to enable Contracting Party to
apply for BNDES financing ("BNDES Norms").

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12.2. All sales bills/invoices issued by Contracted Party in connection with the
acquisition of locally manufactured Items shall include the FINAME (Special
Industrial Financing Agency) Code Number, as per nomenclature indicated in the
Computerized Manufacturer Registry - CFI/FINAME, provided such code is published
before the date when sales bills/invoices are issued. Contracted Party shall
provide all technical and financial data on the Items acquired by Contracting
Party together with the relevant sales bills/invoices, as required by BNDES or
by FINAME. Contracting Party shall not accept more than one sales bill/invoice
for parts of the same Item, except as otherwise agreed by the Parties. All sales
bills/invoices related to the acquisition of locally manufactured Items shall be
subject to return or to an extension in their maturity dates in the event of
being non-compliant with BNDES Norms or other procedures defined in the present
Contract.

12.3. Contracted Party shall be responsible for the accuracy and authenticity of
all data submitted to Contracting Party in connection with such compliance with
Contracted Party's responsibilities.

12.4. In the event of Contracted Party not complying with its obligations as
provided in this Clause 12, and for which Contracted Party shall be responsible
under the present Contract, thus preventing Contracting Party from applying for
any financing under BNDES Norms for reasons attributable to Contracted Party,
then Contracting Party shall have the right to terminate the present Contract
provided that Contracted Party is not capable of remedying such violation within
sixty (60) days counted from the date when a written notice is given by
Contracting Party on the impossibility of obtaining the necessary financing
under BNDES Norms due to the non-compliance on the part of Contracted Party of
the obligations defined in Clause 12, without prejudice to all losses and
damages caused to Contracting Party as a result of such non-compliance.

12.5. Contracted Party shall not be deemed in violation of the responsibilities
defined in this Clause 12 in the event of the application by Contracting Party
for financing from BNDES being rejected or delayed for the following reasons:

(a) Any modification in the legislation, or acts from government agencies and/or
    authorities enforced after the execution of this Contract, which will
    considerably affect the capability of either Contracted Party or Contracting
    Party to comply with BNDES Norms; and

(b) Force Majeure reasons.

13 LOCAL PRODUCTION

13.1 The Parties hereto agree that the production line of GSM Hardware in
Brazil, effective on the date this Contract was executed and as described in
Annex 1 may be discontinued at the sole discretion of Contracted Party should
Contracting Party demand not justify the maintenance of the mentioned production
line. The Parties hereto agree that, in the event of Contracted Party having to
import any Hardware as a substitute for local production, then Contracted Party
shall be committed to comply with the conditions provided in this Contract.
Contracted Party shall further be committed, in this case, to comply with the
provisions in this Contract regarding FINAME and BNDES.

13.2. Contracting Party shall be committed to provide Contracted Party with a
forecast, not involving the purchase obligatoriness relative to its future
demand, to enable Contracted Party to comply with the Lead Times agreed upon in
this Contract. The procedures for the submission of such forecast shall be
agreed upon by the Parties.

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14. HINDERED SITES AND/OR SITES IMPOSSIBLE TO BE USED FOR REASONS NOT IMPUTABLE
    TO THE CONTRACTED PARTY

14.1. In case a Site is hindered and/or has been declared impossible to be used
for reasons not imputable to the Contracted Party and in case the Contracting
Party requests in writing that the Contracted Party removes and delivers the
Items to an alternate Site, the Contracting Party will bear all incurred costs
by the Contracted Party, provided they have been duly proved and have been
previously approved by the Contracting Party, including such costs (i) all the
Services required for the removal, transportation and additional storage of
those Items, (ii) materials which reuse will be deemed impossible in the
alternate Site, and (iii) mobilization of personnel and any other costs incurred
by the Contracted Party for the purposes defined in herein Clause 14.

14.1.1. In case the Items are not transferred to any other Site, according to
the provisions of sub-clause 14.1 above and the Site hindrance remains and/or
the situation of being impossible to use the Site remains, for reasons not to be
imputed to the Contracted Party for more than sixty (60) days from the notice of
hindrance or impossibility of use, and for such reason the Contracted Party is
prevented to execute the acceptance procedures, the Contracting Party will pay
the Contracted Party, within thirty (30) days from receipt of the relevant
Bill/invoice, the amounts related to the event, regarding the relevant "Term of
Initial Term" or the relevant "In Service Certificate" of the Items supplied to
the Site in question.

14.1.2. In case hindrance of the Site remains and/or the situation of being
impossible to use the Site remains, for reasons not to be imputed to the
Contracted Party, in excess of ninety (90) days from receipt of the notice of
the hindrance and/or impossibility of use, the Contracting Party will pay the
Contracted Party, up to thirty (30) days from issue of the relevant
Bill/invoice, the amounts related to the Final Acceptance of the Items supplied
to the mentioned Site. Contracting Party will be responsible for the safety of
all Items delivered by the Contracted Party until the Site's situation is
cleared and the condition of hindrance and/or the condition of impossibility of
use is released. Damage inflicted upon the Items during the period under the
Contracting Party's security will be the responsibility of the Contracting
Party. The Contracted Party takes on the responsibility for execution of the
procedures for acceptances as soon the relevant authorities release the
hindrance and or impossibility of its use,

15. PLANT TESTS AND INSPECTIONS

15.1 The Contracted Party will test Hardware, Software and Spare Parts in
compliance with the standard procedures related to the Contracted Party's plant
tests. The Contracting Party will have the right its presence during execution
of the mentioned plant tests. The Contracting Party will notify the Contracted
Party about the arrival of its representative at least tem (10) days in advance.
The Contracting Party will be responsible for all travel expenses and other
charges incurred by the Contracting Party or its representatives.

15.2 The Contracted Party guarantees that the Hardware, Software and the Spare
Parts will be delivered to the Contracting Party only in case if they have been
duly approved in the plant tests and under any other relevant quality controls
executed by the Contracted Party.

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16. PACKAGING

16.1 All Items will be adequately packaged in compliance with the Contracted
Party's and freight company packaging standards and delivery specifications.

17. OWNERSHIP AND HAZARD

17.1 Property rights regarding the Goods subject of herein Agreement will be
assigned the Contracting Party on delivery of each Good.

17.2 Liability for the hazards connected with the Goods and Services will be
assigned the Contracting Party according to the following provisions:

a)  In case the Contracting Party has contracted Services from the Contracted
    Party, liability for the hazards connected to the purchased Goods will
    assigned the Contracting Party at the time of execution of the Term of
    Initial Acceptance or In Service Certificate, prevailing that which occurs
    first; and

b)  In case the Contracting Party has not contracted any Services from the
    Contracted Party, liability for the hazards connected to the purchased Goods
    will assigned to the Contracting Party simultaneously with delivery of the
    mentioned Goods.

17.3 Ownership of Software and Documentation will always be of the Contracted
Party and/or its relevant licensors, according to Clause 33 of herein Agreement.

17.4 Ownership and liability for any hazards connected with the Spare Parts will
be assigned to the Contracting Party on their delivery.

18. TAXES

18.1. The prices listed in Attachment 1 include all taxes at the rates in force
on the Base Date of herein Agreement, and the applied ISS is related to the five
per cent (5%) rate for Services, to be adjusted according to the rates
applicable to the destination of the invoicing.

18.2. In case, during effectiveness of herein Agreement, any taxes, levies,
charges or fiscal contributions have been created or the rates used in
Attachment 1 have been altered or, in any other manner the Contracted Party's
burdens have been increased or decreased, the prices of herein Agreement will
undergo a review, in order to reflect such alterations, to be applied from
effectiveness of the legal procedures responsible for introduction of such
alterations.

18.3. The Contracted Party will answer exclusively and severally for the payment
of all contributions, levies and charges which incur or come to incur on the
subject of herein Agreement.

18.4. In case the Contracting Party is legally ordered to withhold from the
Contracted Party any amounts for the payment of any taxes and contributions and,
as a result from judicial measures obtained by the Contracted Party the
Contracted Party does not pay such charges, it is agreed between the Parties
that the Contracted Party will bear sole responsibility for eventual tax claims
which may be filed against the Contracting Party, which will be duly compensated
for any penalties, fines or other consequences which may be demanded as a result
from such matter.

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19. OBLIGATIONS OF THE CONTRACTED PARTY

19.1. Without prejudice to the other obligations set forth herein, the
Contracted Party binds itself to:

a) supply all highest-quality Goods, suitable for corresponding purposes and in
condition for making feasible the integration with related systems, Software,
Hardware and Services object of this Agreement and included in Attachment 1;

b) upon the issue of a Purchase Order by the Contracting Party, perform the
implementation, Commissioning, testing and configuring services of the Goods
listed in item "a" above, provided with technical manpower adequate for
performing and inspecting such activities, in accordance with the terms set
forth herein and in the Attachments hereto;

c) submit the Documentation related to Goods and Services;

d) attend to meetings with the Contracting Party, as agreed, without charge to
the latter;

e) promptly provide, according to the specific circumstances of each case,
information on the performance of its own activities when requested by
Contracting Party, in addition to requesting the latter for pieces of
information and documents required for the performance of its activities;

f) strictly comply with the Schedule, keeping a satisfactory quality level of
the activities object of this Agreement, without prejudice to the performance of
other activities which depend directly upon former ones, promptly reporting to
the Contracting Party any fortuitous delays which may have occurred, or which
occur further;

g) remove, under its own liability and expenses, all packages and exceeding
materials, among others, related to the Goods and Services, transporting same to
a location out of the Sites where the Goods have been installed, and keeping
them in adequate conservation and cleanness conditions, observing any rule and
procedure issued by the Contracting Party and/or government requirements
regarding the Site's management and security, provided that the implementation
of the Goods' acquired by the Contracted Party;

h) take actions concerning sub-contracted parties intended for assuring
Contracting Party's guarantees set forth herein; the sub-contracted parties
shall be replaces whenever requested by the Contracting Party by means of a
formal notice, provided that the reason is duly justified;

i) submit, when applicable, to Contracting Party's prior analysis the technical
information, drawings, manuals, documents and calculations related to the
purposes of this Agreement, including those required for the performance and
follow-up of Hardware and Software's installation and tests, as required,
without violating the Contracted Party's intellectual property rights and
observed the terms set forth under Clause 32; it is hereby agreed that any
further approval by the Contracting Party does not reduce Contracted Party's
liability or exempt it from same regarding such pieces of information, drawings,
manuals, documents and calculations;

j) promptly report to the Contracting Party, by means of written notice or any
other means agreed upon between the Parties, any errors or faults detected by
the Contracted Party on the performance of the object of this Agreement;

k) allow and enable the Contracting Party, through its representatives, to
proceed, at any time, with an inspection and provide the inspectors with all
required information and documents, without any charge, in addition to providing
likewise free access to places where an activity related to this Agreement is
being performed, and keeping the record of all considerable events,
notifications, decisions, irregularities, remarks and counterclaims.
Notwithstanding, it is hereby agreed that should the Contracting Party wish to
carry out tests during the performance of Services by the Contracted Party, such
activity shall be previously discussed between the Parties so that it does not
interfere with the compliance with the Schedule;

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l) purchase under its own name, unless otherwise requested by the Contracting
Party, the Goods to be supplied by the Contracted Party and concerned Goods
payment shall be under the sole liability of same, and the use of the
Contracting Party's name in such dealings is prohibited;

m) issue with enough time the reports requested by the Contracting Party, as
agreed upon between the Parties;

n) obtain the Contracting Party's prior permission in case of access to Sites
under the liability of same;

o) define and keep a full-time technical team as well as an adequate number of
professionals to comply with the Contracting Party's requirements regarding
terms and quality set forth herein; such technical team and professionals shall
refer themselves to the Project Manager assigned by the Contracted Party, who
shall be liable for performing the required interface with the Contracting
Party, among other activities;

p) execute all insurance agreements according to Clause 29;

q) carry out the payment of salaries, all labor, social security and any other
burdens required by the applicable law, and its employees and sub-contracted
parties regarding the object of this Agreement, and such obligations are under
the Contracted Party's sole liability;

r) comply with all obligations related to labor safety rules applicable to the
object of this Agreement, in compliance with the law in force; it is liable for
providing all its employees with each and every, collective or individual, piece
of equipment (mainly helmets, shoes, safety belts, etc.), in addition to
requiring from same and their sub-contracted parties the equipment use and the
compliance with relevant rules, making sure that such pieces of equipment are
being properly used;

s) supply, directly or by means of sub-contracting, local Items, provided and so
identified in the Unit Price List - Attachment 1, duly registered in FINAME as
per the law in force. Items not provided in the Unit Price List, shall be
subject to terms and conditions specific for complying with FINAME's terms;

t) provide all Items, when applicable, on visible places, with identification
cards comprising: registered manufacturer's name, Item manufacturing site and
year, in addition to their technical identification and part number;

u) take over the whole liability for fortuitous accidents caused by its
employees or sub-contracted parties to the Contracting Party and third-parties
during the execution of this Agreement, in addition to direct loss and damages
caused to the Contracting Party and third-parties, as per Clause 30;

v) be fully responsible for its employees and sub-contracted parties, including
charges related to social security, accidents and burdens of managing,
punishing, taxing and civil nature; the Contracted Party shall be deemed the
sole employer and it is clear from now on that there is no relationship of any
kind between the employees of the Contracted Party and the Contracting Party;

w) be fully responsible for the deliver of Goods and Services at the right
addresses, as informed in the Purchase Orders accepted by same; additionally, it
shall be likewise responsible for the additional expenses and the risks related
to the transport deriving from the delivery at sites other than those informed
in the Purchase Orders accepted by same; and

x) be fully responsible for the removal of Goods which have been delivered at
the Site without being requested by the Contracting Party.

19.2. The Contracted Party shall carry out its duties pursuant to its own
methods and standards, and complying with all requirements and technical
specifications agreed upon between the Parties; the Contracted Party is
compelled to comply with applicable standards, including those officially
published by Anatel and ABNT (Brazilian Association of Technical Standards).

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         19.2.1   The Goods shall comply with all effective regulations
                  (including Resolutions 316, 317, 318, 319, 320, 321, issued in
                  the year of 2002, in addition to the old ones 252/2000,
                  226/2000, 263/2001, issued by Anatel) or those eventually
                  established by Anatel and other regulating bodies.

         19.2.2   The Contracted Party is liable for adjusting Goods and
                  Services according to the regulations established by Anatel
                  and other regulating bodies, effective until November 11,
                  2002; the Contracting Party shall not be liable for any charge
                  regarding such adjustment.

19.3. The prices of Goods set forth herein are based on Anatel's specifications
officially published until November 11, 2002. Should Anatel or any other
competent regulating body either modify or establish new specifications which
imply in changes in the Goods supplied by the Contracted Party, the Parties
shall come to an agreement on the prices deriving from such changes.

         19.3.1.  Notwithstanding the provisions under sub-clause 19.3. above,
                  the Parties hereby agree that further regulations which may
                  detail, repeat or adjust subjects which have been object of
                  regulations (Resolutions, Ordinances, Standards or Acts issued
                  by Anatel or other regulating bodies) in force until November
                  11, 2002 applicable hereto, shall be complied with by the
                  Contracted Party without any charge to the Contracting Party,
                  even if such subject have been ruled by means of a regulation
                  issued with a new number upon such date. The Parties hereby
                  agree that deriving adjustments shall be always limited to
                  subjects object of regulations issued until November 11, 2002.

         19.3.2.  Should Contracted Party have developed, as per the Contracting
                  Party express resolution, features which are regulated by
                  Anatel in a way other than that determined by the Contracting
                  Party, the adjustments required for the new regulation issued
                  shall be agreed between the Parties.

19.4. The Contracted Party binds itself to submit homologation certificates for
all equipment models supplied, which may be subjected to mandatory
certification, with the respective effective date updated.

19.5. Contracting Party recognizes that the Contracted Party shall not be liable
for obtaining permits related to the Sites.

20. OBLIGATIONS OF THE CONTRACTING PARTY

20.1 Without prejudice to the other obligations set forth herein, the
Contracting Party binds itself to:

a) make the access to the Sites available and feasible for Contracted Party's
personnel and sub-contracted parties, with all specifications set forth in the
RFI (Ready for Installation) document as provided in Attachment 5, such as
heating, air-conditioned, lighting, current airing and electric power points,
storage proper space, if required, and related quality levels, on the dates
established on the Implementation Plan to be defined between the Parties, or
which are otherwise reasonably required for allowing the Contracted Party to
begin and accomplish the Implementation, without interruptions;

b) provide, as reasonably specified by the Contracted Party, any pieces of
information requested by same and which are required for the System's or Part of
the System's project, engineering and Implementation, or otherwise required for
the Contracted Party to comply with its obligations as per this Agreement as,
for instance, among others, technical data for interfacing with existing
systems, data and plans of the respective Site on the dates specifically
provided in the Implementation Plan, or as otherwise required for the Contracted
Party to comply with its duties;

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c) provide the Contracted Party with effective help to obtain and maintain any
entry or working visa or permit required for the personnel contracted by same;

d) provide the Contracted Party with effective help to obtain and maintain the
licenses required for importing and re-exporting the Equipment of same on
temporary and tax-free basis, within five (05) days as of the Contracted
Parties' request;

e) provide the Contracted Party monthly with a forecast of Goods demand without
any purchase obligation on the Contracting Party's part;

f) obtain required permits for building up and operating the Sites;

g) carry out the payments regarding the supplies object of this Agreement, as
per the terms and conditions set forth herein and Attachments hereto.

20.2 Should the Contracting party fail to comply with or be behind schedule in
the compliance with its obligations as per clause 20, it shall then reimburse
the Contracted Party for all additional costs and expenses the latter may incur
for complying with impacted obligations, provided that such additional costs and
expenses are proved by the Contracted Party and validated by the Contracting
Party, without prejudice to the Contracted Party's right to postpone its
obligations as per the provisions under sub-clause 25.2, or to another term
agreed upon between the Parties. The Contracted Party shall be reimbursed for
all such costs and expenses within thirty (30) days as of the issue of the
respective Bill of Sales/invoice by same.

21. PROJECT MANAGEMENT

21.1 Both Contracted Party and Contracting Party, for the effective period of
this Agreement, shall appoint a Project Manager for the Agreement who:

a) shall have authority to make routine decisions concerning the execution of
this Agreement; and

b) shall keep the closest cooperation possible with the Project Manager of the
other Party, as the case calls.

21.2. The Parties shall appoint the individuals who shall replace the Project
Managers should they be absent or fortuitously prevented from performing their
functions.

21.3. Every communication regarding the performance development of this
Agreement's object, shall be made by means of a written notice and forwarded to
the Project Manager of the other Party, except for cases of oral agreement,
determined according to the job's urgency, which shall be confirmed by means of
written notice within three (03) days as of its occurrence.

21.4 Each Party shall formally report to the other Party the complete name and
position of its Project Manager.

21.5 Except for reasons justified and accepted by the Contracting Party, the
Contracted Party shall keep at the former's disposal, for the effective period
of this Agreement, its Project Manager who shall be responsible for the
management of the System's Implementation and Inspection.

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21.6 The Contracted Party shall appoint a professional duly registered at the
local Regional Council of Engineering, Architecture and Agronomy (CREA), as the
technical person in charge of contracted Services' Implementation.

21.7 Each Party shall be liable for travel and daily expenses of its respective
professionals involved in the Project Management, provided it is not otherwise
agreed between the Parties hereunder.

22. MILESTONES

22.1 Both Parties shall comply with the Schedule, observing the respective
activities as set forth in Attachment 2.

22.2 The issue of the Initial Acceptance Term by the Contracting Party or the
payment to the Contracted Party of any amount due as per the terms herein, shall
not exempt the latter from its liabilities regarding performed activities and
those to be performed, and shall not imply in the final acceptance of same.

22.3 Should Contracting Party certify the existence of any irregularity or
default concerning activities reported as completed by the Contracted Party,
these activities shall be deemed uncompleted, and remain as pending events until
the latter correct such irregularities or defaults; the Contracted Party shall
be liable for deriving expenses.

23. PROGRESS, INSPECTIONS AND TESTING REPORT

23.1. The Contracted Party shall submit to the Contracting Party, weekly or
whenever requested by same, a report on the progress of the System's or Part of
the System's Implementation, as applicable, in order to keep the Contracting
Party aware of: (i) its current phase always comparing to the Schedule; (ii)
next steps to be taken by the Contracted Party concerning faced troubles, or
those to be faced; and (iii) corrections carried out or to be carried out.

23.2. The Contracting Party may, at any time and whenever required, carry out
inspections and tests, provided that in compliance with the provisions under
Clause 19, letter "k", concerning the Goods and Services to be supplied by the
Contracted Party, in order to verify their compliance with the applicable
technical regulations and the specifications provided herein. The following
procedures may be performed:

a) Quality control testing;

b) Inspection at the moment of supply; and

c) Installation inspection.

23.3. Unless otherwise agreed upon between the Parties, the Contracted Party
shall supply, without charge to the Contracting Party, whatever is required for
testing performance in compliance with Attachment 5.

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24. ACCCEPTANCE

24.1 Acceptance and testing procedures concerning all items supplied by the
Contracted Party in compliance with this Agreement, shall be carried out in
accordance with the terms set forth in Attachment 5.

24.2 Acceptance terms concerning the Sites to be made available by the
Contracting Party, shall be in compliance with the terms set forth in Attachment
5.

25. PENALTIES

25.1 Contracted Party should deliver Assets according to the Implementation Plan
to be defined between the Parties. Such Implementation Plan will be always
subject to the Parties' respective responsibilities, as defined in the Matrix of
Responsibilities - Attachment 2.

25.2. In case the Contracted Party is precluded for complying with its
obligations for action or nonfeasance reasons attributable exclusively to the
Contracting Party or to circumstances of Force Majeure, the term for complying
with such obligations will be proportionally postponed for the same number of
days such impossibility will be lasting.

         25.2.1. In the event the foregoing impossibility occurrence for action
         or nonfeasance attributable exclusively to the Contracting Party, it
         should bear with all additional costs incurred by the Contracted Party
         in complying with obligations involved, since properly proved by the
         Contracted Party and validated by the Contracting Party.

25.3. Penalties defined in this clause represent the only and total compensation
for the non-compliance with obligations defined in this Agreement, however, it
is agreed upon that the payment for such penalties to the Contracting Party will
not exempt the Contracted Party from the responsibility of complying with
obligations established in this Agreement, which gave rise to such penalties, as
follows:

25.4. Penalties for Arrears

         25.4.1. In the event that, on account of circumstances for which the
         Contracted Party is responsible, the System or Part of the System is
         not ready for approval by the Acceptance Tests, according to: (i) dates
         agreed in the Implementation Plan, or within the extension or
         postponement period, as the case may be, or (ii) obligations deriving
         from the Matrix of Responsibility established in the Attachment 2, the
         Contracting Party will be entitled to require from the Contracted Party
         the following compensation fines:

                  25.4.1.1. For each BTS Site, the compensation fine will be,
                  for each full week in arrears, 2% (two per cent) over the
                  aforementioned BTS Site, until 10% (tem per cent) maximum over
                  the BTS Site value.

                  25.4.1.2. For all other Items, the compensation fine will be,
                  for each full week in arrears, 2% (two per cent) over part of
                  the Item value in arrears (including costs referent to
                  relevant Services, since rendered by the Contracted Party or
                  by its subcontracted parties), or the Item total value when
                  the part involved prejudices its functional quality, until 10%
                  (ten per cent) maximum over part of the Item value or Item
                  value, as the case may be.

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                  25.4.1.3. In the event the compensation fine has been applied
                  within its maximum limit, the Contracting Party shall, upon
                  notification in writing, require the Contracted Party to
                  comply with its obligations in arrears, within a certain
                  period of time, which will not be inferior to 7 (seven) days
                  counted as from the receipt, by the Contracted Party, of the
                  aforementioned notification. Such period will be defined by
                  the Contracting Party, at its exclusive discretion,
                  considering reasonable technical conditions for complying with
                  the obligation, among other conditions that may influence such
                  compliance.

                           25.4.1.3.1. In case the Contracted Party does not
                           succeed in complying with its obligations within the
                           term established in the abovementioned sub-clause
                           25.4.1.3, the Contracting Party will be entitled to
                           terminate this Agreement, upon simple notification to
                           the Contracted Party.

              25.4.2. The compensation fine payment will not exempt the
              Contracted Party from the obligation of deliver and Implement the
              System or Part of the System.

      25.5 Penalty for not complying with Technical Specifications

25.5.1 In the event Assets installed do not meet Technical Specifications
mentioned in Attachment 4, the Contracting Party will be entitled to apply the
following conditions:

              (a)  During the Technical Warranty period, the Contracted Party
                   should repair or replace the Asset as soon as possible,
                   without additional costs to the Contracting Party. In this
                   case, it will be applied a compensation fine of 1% (one per
                   cent) of the corresponding Asset value;
              (b)  In the event the Asset requested is not available and the
                   Contracted Party has installed another Asset that contains
                   the same or better functional quality, it will not be applied
                   any fine and the Contracted Party will be entitled to install
                   and replace the Asset originally requested, as soon as it is
                   available;
              (c)  In the event the Asset requested is not available and the
                   Asset installed does not meet the Technical Specifications
                   agreed upon, it will be applied a compensation fine of 10%
                   (ten per cent) over the Asset relevant value, since the fine
                   established in the abovementioned sub-clause 25.4 was not
                   applied.

    25.6 Penalty for not complying with the Utmost Term of Intervention During
    the Warranty Period

         25.6.1. During the Technical Warranty period and in case the Contracted
         Party incurs in undue arrears, taking into consideration the maximum
         terms established in sub-clause 26.2, the Contracting Party will apply
         the following penalty:

                o For each delaying hour, 0.2% (point two percent) over the
                  Hardware and/or Software value will be charged, if applicable,
                  and such Penalty limit is established in 20% (twenty per cent)
                  over the Hardware and/or Software value. In the event the
                  limit is attained, the Contracting Party will be entitled to
                  terminate this Agreement.

    25.7. Penalties for Network Elements "Down Time"

         25.7.1. Contracted Party assures that all Network Elements will be in
         operation during the Technical Warranty period.

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         25.7.2. Contracted Party should assure that the annual failure rate for
         each Network Element (MSC, HLR and BSC) should not exceed 40 (forty)
         "down time" minutes (out of operation) per year.

                  25.7.2.1 In case the annual failure rate is exceeded, the
                  Contracted Party should pay penalties for the period exceeding
                  the annual failure rate agreed upon, using the following
                  formula:

                           (a) 0.3 % of the Network Element price for each 15
                           (fifteen) minutes of "down time" exceeding the annual
                           failure rate, limited to 1.5% (one point five per
                           cent) over the Network Element price; and

                           (b) 0.5 % of the Network Element price for each 10
                           (ten) minutes of "down time" exceeding those 115
                           minutes under item (a) above, limited to 5% (five per
                           cent) over the Network Element price.

         25.7.3. For this sub-clause 25.7 purpose, the annual failure rate will
         not consider the "down time" caused by:

              (i)   Preventive maintenance agreed upon between the Parties;

              (ii)  Handling, sizing or changes inadequately performed by the
                    Contracting Party and/or by its subcontracted parties, since
                    evidenced by the Contracted Party;

              (iii) Events of Force Majeure, as mentioned in Clause 31.

         25.7.4. During this Agreement validity term, in case of conflicts or
         doubts between its terms and the provisions of any system support
         agreement executed or to be executed among the Parties, the agreement
         conditions that most benefit the Contracting Party should prevail, and
         the Contracting Party will not be allowed to join simultaneously
         conditions of one and of other.

    25.8  Limitation for all Penalties

25.8.1. Notwithstanding any other conditions established herein, the payment of
compensation fines established in this Agreement is limited to 10% (ten per
cent) of the accumulated value of Purchasing Orders accepted by the Contracted
Party.

26. TECHNICAL WARRANTY

26.1 System or Part of the System

         26.1.1 Contracted Party guarantees that Assets are of the best quality,
         news and do not present any irregularities, defects or errors even
         though related to the manufacturing ("Technical Warranty").

         26.1.2 The Technical Warranty period applied to Assets will be of 24
         (twenty four) months counted as from the Statement of Initial
         Acceptance or the "In Service Certificate" issuance, the earliest to
         occur. The Technical Warranty period of Items repaired or replaced will
         be effective until the original warranty termination, and should never
         be inferior to 6 (six) months counted as from the Item repair or
         replacement date.

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         26.1.3. Notwithstanding provisions mentioned in sub-clause 26.1.2
         above, Parties agree herein that the Technical Warranty period for
         Spare Parts and for all and any Hardware and/or equipment acquired
         without correlated Services will start in the date of the respective
         delivery.

         26.1.4. Parties agree herein that in the event the Contracted Party is
         requested for executing a repair or correction or executing any other
         Services under provisions mentioned in this Clause 26, such Service
         should be executed by the Contracted Party or by its subcontracted
         parties, taking into consideration conditions established in this
         Agreement.

         26.1.5. In consideration of provisions mentioned in sub-clauses 19.2
         and 19.3, it is agreed upon between the Parties that all Assets should
         meet the GSM specifications established by the Brazilian legislation,
         including those related to Anatel and ABNT rules. Furthermore, Parties
         agree herein that the Contracted Party will not be liable for
         consequences arising from any modifications performed in the GSM
         specification, after the supply of Assets to the Contracting Party.

         26.1.6. Parties should agree upon with the Technical Warranty terms and
         conditions applicable to Items not included in the scope of this
         Agreement.

         26.1.7. Defective, irregular or erroneous Assets, which are replaced,
         should be returned to the Contracted Party.

         26.1.8. Assets presenting defects, irregularities or errors should be
         removed from the Contracting Party facilities upon its authorization,
         in writing, as provided by this Agreement.

         26.1.9. During the Technical Warranty period and at the time a defect,
         irregularity or error is identified in any Item provided by the
         Contracted Party, the Contracting Party should notify the occurrence,
         in writing, to the Contracted Party, who should proceed according to
         provisions established in sub-clause 26.2, Utmost Intervention Term.

         26.1.10. Assets returned for repair or replacement should follow
         returning instructions and procedures, as per the Request for Repair
         and Replacement and Control of Defects Report document provided in the
         Attachment 4. For Items that should be repaired or replaced at the
         Contracted Party's plant within the State of Sao Paulo, the Contracting
         Party should pay for transportation costs since its facilities up to
         the Contracted Party's plant and the Contracted Party should pay for
         all transportation costs for delivering Items repaired or replaced to
         its place of origin.

         26.1.11. During the Technical Warranty period, Hardware units
         presenting failures that need to be repaired at the Contracted Party's
         plant will be returned to the Contracting Party within 60 (sixty) days
         as from the receiving date at the Contracted Party's plant of units in
         question.

         26.1.12. Except if otherwise agreed upon by the Parties, with regard to
         the Software indirectly supplied by the Contracted Party, it will
         transfer to the Contracting Party warranties granted to the Contracting
         Party by its supplier and such warranties will be effective for a
         period of at least 24 (twenty four) months as from the Statement of
         Initial Acceptance or "In Service Certificate" issuance, the earliest
         to occur. In case the Contracted Party is unable to transfer such
         warranties, the Contracted Party should guarantee the aforementioned
         Software, during a period of 24 (twenty four) months as from the
         Statement of Initial Acceptance or "In Service Certificate" issuance,
         the earliest to occur.

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         26.1.13. Contracted Party guarantees to the Contracting Party that
         Services will be carefully and professionally executed and in
         accordance with Technical Specifications agreed upon by the Parties
         with regard to Services in question, using non-defective materials. In
         case there is an evidence that Services were not executed as defined in
         this sub-clause, the Contracted Party, at its expenses, will promptly
         correct any defects of failures, which are under its responsibility.

         26.1.14. Warranties granted in this Clause are the sole warranties and
         liabilities of the Contracted Party with regard to the System or Part
         of the System, subject of this Agreement.

         26.1.15. In the event that more than 10% (ten per cent) of the total
         number of any specific unit present identical failures more than 3
         (three) times ("Systematic Failure"), generic measures should be taken
         to solve the problem, by the replacement of faulty units, if necessary.
         In case the Contracted Party is unable to present a solution in such a
         way as to prevent such failure to occur again, the Contracted Party
         will be responsible for the replacement of such unit, including the
         transportation, Implementation and all other relevant costs.

         26.1.16. Contracting Party should repair the faulty Software and should
         provide Software ("patches") corrections at the time Software problems
         (`bugs") are detected without any burdens to the Contracting Party
         during the Technical Warranty period.

         26.1.17. Contracted Party will include Software ("patches") corrections
         in versions subsequent to those in which the correction was performed,
         without any additional cost to the Contracting Party, since such
         Software ("patches") corrections are indeed necessaries.

         26.1.18. Parties agree herein that the Technical Warranty will cover
         all Assets failures and replacements, excepting the field labor, which
         will be provided without charges only in the occurrence of a Systematic
         Failure, and it will not be applicable if:

                  a) Assets are used and maintained under abnormal conditions or
                  in disagreement with the Documentation, information,
                  orientation provided by the Contracted Party and with the
                  Contracting Party specifications informed and previously
                  agreed upon with the Contracted Party;

                  b) Contracting Party did not notify the Contracted Party
                  within 10 (ten) days after it took notice of such failures,
                  non-conformities or deviations;

                  c) Such failures, non-conformities or deviations are
                  undoubtedly caused by equipment supplied by third parties,
                  operationally interconnected to Assets;

                  d) Contracting Party have hampered the Contracted Party to
                  inspect and solve such failures, non-conformities or
                  deviations; and

                  e) Contracting Party did not implemented Software Updates to
                  Assets for purposes of failure correction within 1 (one) month
                  counted as from its receipt, during the Technical Warranty
                  period.

         26.1.19. Warranties granted in this Clause 26 should not be applied to
         any failures deriving from Assets modifications, without the previous
         approval, in writing, of the Contracted Party.

         26.1.20. Warranties granted in this Clause 26 are not applicable to
         consumable Items.

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26.2. Intervention Terms

         26.2.1 Contracted Party should observe the following intervention terms
         during the entire Technical Warranty period:

         26.2.2 Intervention in case of Emergency (during 365/365 days per
         year):

                   a. Help Desk availability: 00:00-24:00 h;
                   b. Site Intervention terms for: MSC, OSS and BSC:
<TABLE>
<CAPTION>
<S>                                                                           <C>
                           (i) Sao Paulo and Campinas:                 within 4 hours after requested, in writing;

                           (ii) Rio de Janeiro:                        within 8 hours after requested, in writing;

                           (iii) Curitiba and Belo Horizonte:          within 10 hours after requested, in writing;

                           (iv) Brasilia, Porto Alegre and Goiania:    within 12 hours after requested, in writing;

                           (v) Manaus and Belem:                       within 24 hours after requested, in writing;

                           (vi) Salvador and Recife:                   within 24 hours after requested, in writing.
</TABLE>
                  26.2.2.1. Abovementioned intervention terms depend on flights
                  commercial timetables, if applicable. In case the intervention
                  is needed in Sites not located in Cities other than those
                  provided in the sub-clause 26.2.2 above, Parties will agreed
                  upon about the respective utmost intervention terms.

         26.2.3 During this Agreement validity term, in the event of conflict or
         doubt between provisions established in this sub-clause 26.2 and
         provisions of any system support agreement executed or to be executed
         between the Parties, the agreement conditions that most benefit the
         Contracting Party should prevail, and the Contracting Party will not be
         allowed to join simultaneously conditions of one and of other.

27. SPARE PARTS

27.1. Contracted Party assumes the obligation to supply to the Contracting
Party, for a period of 12 (twelve) years counted as from this Agreement
termination date, support services and maintenance, as well as spare parts,
associated to each and every Hardware that has been supplied during this
Agreement validity term, and it is agreed herein that, after this Agreement
termination, terms and conditions (including prices) applicable to such services
and spare parts will be subjected to an agreement by the Parties.

27.2. Notwithstanding the foregoing, in the event the Contracted Party opts for
discontinuing the supply of any Spare Part, the Contracted Party will address to
the Contracting Party a previous notification within 12 (twelve) months, in such
a way as to allow the Contracting Party to place Purchasing Orders for the
aforementioned Spare parts within such period.

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28. PERFORMANCE BOND

28.1 As a warranty for complying with all its liabilities established in this
Agreement, the Contracted Party should deliver to the Contracting Party, a
"Performance Bond" issued by a first line bank, at the Contracting Party's
discretion, terms of which should observe provisions established in Attachment 6
of this Agreement, as well as the following defined criteria:

28.2. During this Agreement validity term, Performance Bonds should be given for
successive periods based on the value corresponding to 15% (fifteen per cent) of
Assets supplies and Services rendered, by adopting the following:

         a1. For the first Performance Bond validity period, which will comprise
         the first 6 (six) months of this Agreement validity term, the
         Performance Bond value should be of R$33,000,000.00 (thirty three
         millions of Reais), corresponding to 15% (fifteen per cent) of Assets
         supplies and Services rendered estimated for such period, and the
         Contracted Party should present the corresponding Performance Bond to
         the Contracting Party within 30 (thirty) days as from this Agreement
         signature date;

         a2. Within 15 (fifteen) days before the termination of the Performance
         Bond validity date, given for the period established in "a1" above, the
         Contracted Party assumes the obligation to present a new Performance
         Bond, replacing the previous one, which should comprehend the total
         amount of the equivalent to 15% (fifteen per cent) of the value
         effective invoiced till then, plus 15% (fifteen per cent) of the value
         estimated by the Contracting Party for the next 6 (six) months,
         proceeding as such for subsequent periods until the Agreement
         termination, except for the last period, which according to the final
         Agreement maturity date, should be superior or inferior to that number
         of months.

28.3. Nevertheless, it is agreed upon between the Parties that on account of the
Performance Bonds periodical issuance, as provided above, the Contracted Party,
after the Agreement termination, should contract a new Performance Bond for the
two years subsequent to such termination, related to the Technical Warranty
period, under the following conditions: (i) for the first year, counted as from
the Agreement termination, the contracted Performance Bond should correspond to
5% (five per cent) of the total amount effectively invoiced until the Agreement
termination; and (ii) for the second year, counted as from the Agreement
termination, the contracted Performance Bond should correspond to 3% (three per
cent) of the total amount effectively invoiced until the Agreement termination.

28.4 Contracting Party is entitled to execute the Performance Bond in case the
Contracted Party does not comply with any of its obligations established in
Agreement, notifying immediately the Contracted Party about Performance Bond
exercise.

28.5 It is also agreed upon by the Parties that Performance Bonds should be
issued under first demand conditions, irrevocable and irretrievable, and will
not be subjected to any condition stated previously to its executed.

29. INSURANCE

29.1. Contracted Party should offer risks liability insurance for System or Part
of the System engineering, installation and mounting, as the case may be,
covering damages caused by the Contracted Party and by its subcontracted
parties. Such insurance should be contracted from a first line insurance company
and should cover all reasonable risks inherent to Services and Assets provided
in the subject of this Agreement. Insurance should produce effects until the
liability transference, according to Clause 17 therewith. The insurance will
also cover costs for Assets replacement as well as its parts and components,
which the Contracted Party will deliver to the Contracting Party for the System
or Part of the System Implementation, as the case may be.

         29.1.1. Abovementioned sub-clause 29.1 is not applicable in cases of
         installation, tests and integration Services that are rendered by third
         parties directly contracted by the Contracting Party. Such third
         parties will assume the responsibility for eventual damages they happen
         to cause to the Contracting Party's Assets. Nevertheless, it is agreed
         upon that, as long as the Contracted Party renders installation, tests
         and integration Services, jointly and severally with the Contracting
         Party, the Contracted Party will assume the responsibility for
         contracting the insurance provided in the abovementioned sub-clause
         29.1 with regard to such Services.

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29.2. Contracted Party should maintain a Civil Liability Insurance in the amount
of R$2,500,000.00 (two millions and five hundred thousands Reais), covering
material and/or personal damages caused by the Contracted Party, or by its
subcontracted parties, to the Contracting Party or to third parties, during the
System Implementation, which should remain effective during this Agreement
duration.

29.3. Insurances eventually contracted by the Contracting Party will not
constitute a reason for the Contracted Party not contracting insurances
stipulated in this Agreement and should not affect the Contracting Party's right
to fix any fine, Penalty, indemnity or liability upon the Contracted Party.

29.4. Contracted Party should present to the Contracting Party copy of insurance
policies, fully quitted, stipulated in above sub-clauses 29.1 and 29.2,
immediately after its contracting and at each renewal.

29.5. Contracting Party should previously analyze and approve insurance policies
coverage conditions, which should not be have any modification during this
Agreement duration, without the previous Contracting Party authorization, in
writing.

29.6. Insurance policies approval by the Contracting Party does not relieve the
Contracted Party's responsibility for indemnifying the Contracting Party for
losses and damages to which it give rise, complying with conditions stipulated
in this Agreement, including the event of such amount exceeding the maximum
indemnity limit stipulated in the insurance policies.

30. INDEMNITIES AND LIABILITY LIMITATION

30.1 Contracted Party assumes the fully and completely liability, be it upon
administrative, civil or penal jurisdiction, for direct damages caused during
the execution of its or its contracted parties activities, before the
Contracting Party or third parties, holding the Contracting Party harmless of
any liability and burdens derived from this Agreement.

30.2 Contracted Party is liable for any expenses, unfavorable sentences or
losses related to injuries or death caused to any person, or any other type of
damage to any asset belonging to the Contracting Party or to third parties, all
of them deriving from this Agreement, and the Contracted Party will assume the
responsibility for each defense burdens in any proceeding (judicial or
extra-judicial) filed by third parties against the Contracting Party, since
proved the Contracted Party or its subcontracted parties' liability.

30.3 In the event a suit is filed upon the Contracting Party resulting from acts
or nonfeasance attributable to the Contracted Party or to its subcontracted
parties, including labor, fiscal and/or civil claims, the Contracted Party
should hold harmless and indemnify the Contracting Party for any damages,
expenses and liabilities, and should substitute the Contracting Party in such
claim, observing the following conditions:

a) since the Contracting Party informs to the Contracted Party, in writing and
under terms below, the receiving of any, citation, summons or notification, and
abstain from making any arrangements referred to, without the previous approval
by the Contracted Party:

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(i) Judicial citation and summons within 15 days term - within 72 hours;

(ii) Extra-judicial summons within 15 days term - within 72 hours;

(iii) Summons with a 30 days response - within 05 days; and

(iv) Any other summons with a response term superior to 30 days - within 10
days.

         a1) Abovementioned terms will be calculated as from the first working
         day, inclusive, after the receiving of summons, citation or
         notification by the Contracting Party.

b) since the Contracting Party grants to the Contracted Party full powers to
defend the proceeding or to compound with the third party complaint; and

c) since the Contracted Party is informed about all circumstances which the
Contracting Party is aware of, and which are significant to the commenced
action.

         30.3.1 In case the Contracted Party no longer acts for defending such
         claims or proceedings, the Contracting Party should take all
         appropriated legal remedies and should be reimbursed of all expenses
         deriving from such remedies, including judicial costs and attorney's
         fees.

30.4 None of the Parties will be, in any circumstance, responsible for the other
Party, under this Agreement, for database losses, production losses, businesses
or anticipated profits losses or any other incidental damage, whether or not
such possibility of damage was reasonably estimated, unless if for deceit
reasons.

30.5 The Party aggrieved by losses and damages will use its reasonable endeavors
to restrict such losses and damages.

31. FORCE MAJEURE

31.1 Any of the Parties will be released for complying with any of its
obligations under this Agreement in the event of Act of God or force majeure
("Force Majeure"), under the terms stipulated in the Brazilian Civil Code,
Article 393.

31.2 In case of Force Majeure, the aggrieved Party will promptly notify the
other Party, in writing, providing all relevant information. The liability or
condition term aggrieved by the Force Majeure will be postponed for the same
number of days such hindrance persist or by another tem that will be agreed
upon, in writing, by the Parties.

31.3 The lack of a notification under the abovementioned terms will give raise
to losing the right of alleging an event of Force Majeure for not complying with
any clause or condition stipulated in this Agreement, and the defaulting party
will be subjected to penalties stipulated herein.

31.4 If the Force Majeure cause lasts for more than 6 (six) months, then any of
the Parties will be entitled to terminate this Agreement, in whole or in part,
and the other Party will not be entitled to claim for any indemnity, of any
kind.

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32. RIGHTS OF INTELLECTUAL PROPERTY

32.1. Copyrights over all drawings, specifications, manuals, documents and data,
and the rights of intellectual property provided by one of the Parties to the
other, according to this Agreement, should remain with the Party holding such
rights, however, the recipient Party will be entitled to the non-exclusive and
non-transferable license for using copyrights for the execution of this
Agreement, as well as for the System operation and maintenance, when strictly
defined in this Agreement.

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33. LICENSE FOR SOFTWARE AND DOCUMENTATION USE

33.1 Subject to terms and conditions stipulated in this Clause 33, it is hereby
granted to the Contracting Party a license for a period of 50 (fifty) years,
irrevocable and non-exclusive, for the Software and Documentation use (subject
to payments, by the Contracting Party, of the corresponding amounts), for the
operation and maintenance by the Contracting Party itself or by third parties
rendering services to the System or to Part of the System, according to this
Agreement and its Attachments. With regard to the Software and the Documentation
not directly provided by the Contracted Party, it declares that it does not hold
the necessary rights to transfer the respective licenses to the Contracting
Party for the Software and Documentation use.

33.2. Contracted Party should provide to the Contracting Party during the
Technical Warranty period, without any additional charges, Updates of the
licensed Software and their corresponding rights, as soon as they are available.

33.3. Contracted Party should provide any Upgrades the to the Contracting Party,
as soon as they are available, subject to prices and conditions to be previously
agreed upon by the Parties.

33.4. Notwithstanding any provisions otherwise stated in this Agreement, it is
agreed upon herein that Contracting Party will not receive any ownership or
proprietary rights over the Software or the Documentation and such rights will
remain with the Contracted Party or its suppliers.

33.5. Contracting Party agrees that the Software or the Documentation that is
being provided herein or any of their renewals, extensions or roll-outs will be
considered as exclusive and as a business secrecy of the Contracted Party or of
its suppliers, and will be subject to provisions stipulated in Clause 36.

33.6. In view of the foregoing, the Contracting Party:

a) will not supply or make available the Software or the Documentation or any of
their parts or features (including any of their methods or concepts used or
specified) to any third party, except to their employees of services rendered
companies, as necessary;

b) will not make any copies of the Software or the Documentation or any of their
parts, except for backup purposes;

c) when copies allowed as mentioned above are executed, it will transfer to such
copies any advise of copyright or other advise contained in the Software or in
the Documentation;

d) will not modify, de-compile, translate (except for internal use), adapt,
arrange or correct any error or make any change in the Software or in the
Documentation without the Contracted Party's previous approval, in writing; and

e) will not use the Software or the Documentation for other purpose but the one
allowed in this Clause 33; e

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f) will not transfer the Software and/or Documentation license to another
Network Element but the one it was contracted for, as well as outside the
territory, without the Contracted Party's previous consent, in writing.

33.7. Contracting Party and any Contracting Party's successor holding the
ownership of the Hardware or part of the Hardware will be entitled to,
independently of the Contracted Party consent, transfer this license to a third
party, who acquires the System or part of the System, since such third party
assumes the obligation, in writing, to adhere to all terms and conditions
stipulated in this license.

33.8. Obligations of the Parties, as stipulated in this Clause 33, will survive
to the termination or expiration of this Agreement, for whatever reason.

33.9. The Software licensed according to this Agreement will be delivered in one
inseparable package containing also, in addition to the Software, other programs
or technical resources, which will not be allowed to be used by the Contracting
Party as they concern to additional applications. However, upon the Contracting
Party's request, the Contracted Party is able to offer a license for using such
other software programs or technical resources under the same terms and
conditions stipulated in this Agreement, excepting with regard the price, which
should be negotiated between the Parties.

33.10. Contracting Party agrees with not transferring, directly or indirectly,
any American technical data (including the software) that are part of the OSS
System, which the Contracted Party have acquired from the Gensym Corporation
company, or any other associated product, without the previous authorization, in
writing, of the American Trade Department or other American government agency,
to the following countries: Albania, Angola, Armenia, Azerbaijan, Byelorussia,
Bosnia and Herzegovina, Bulgaria, Cambodia, Cuba, China (PRC), Estonia, Georgia,
Iran, Iraq, Kazakhstan, Kyrgystan, Laos, Lithonia, Libya, Lithuania, Moldova,
Mongolia, Korea North, Romania, Russia, Rwanda, Sudan, Syria, Tajikistan,
Turkmenistan, Ukraine, Uzbekistan and Vietnam.

33.11. The Contracting Party will use the software referred to in sub-clause
33.10 above, strictly for executing its businesses in Brazil and only for
pacific and not for military purposes.

33.12. Contracting Party should not export the Software referred to in above
sub-clause 33.10 without the Contracted Party's formal authorization (except for
repair / updating / maintenance purposes at the manufacturer plant or at another
manufacturer plant, it may indicate).

34. INFRINGEMENTS TO RIGHTS OF INTELLECTUAL PROPERTY

34.1 Contracted Party will indemnify and hold the Contracting Party harmless
from all suits and claims of patents, copyrights, registered drawings
infringements or any other intellectual property rights in view of Assets use,
according to conditions stipulated in this Agreement and the Contracted Party,
at its discretion and expenses, will promptly:

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i) obtain, to the Contracting Party, rights for Assets continuous use, or

ii) replace or modify Assets in such a way that they no longer infringe
    such rights, since functional qualities and performance are maintained.

34.2 In case the Contracted Party does not attain none of above indicated
options, enabling the Contracting Party to remain legally able to exercise
rights of use associated to Assets, the Contracted Party should remove the
complete Software associated to the infringement and should indemnify the
Contracting Party for the purchasing price paid and updated based on the market
conditions then in force, referent to this or any similar Software, in the event
such Software is off-the-shelf. If the Software returned under the terms of this
sub-clause is a component, which absence may affect the functional quality of
the System or part of it, the Contracted Party should restore such System
functional quality assuming the responsibility for direct damages caused to the
Contracting Party, since:

a) the System is being correctly used in accordance with the Documentation and
the purposes stipulated herein;

b) Contracting Party informs the Contracted Party, in writing, under the terms
of letter "a", sub-clause 30.3., about any claim filed on the account of the
supposed infringement, as aforementioned, and abstain from acting for the
account of such claim without the previous approval of the Contracted Party;

c) Contracting Party informs the Contracted Party, in writing, under the terms
of letter "a", sub-clause 30.3, in case any proceeding that is being brought
before a court by any third party, on the account of such claim and the
Contracted Party will have full power to defend and to enter into an agreement
by means of a lawyer;

d) Contracted Party is informed about all knowledgeable circumstances of the
Contracting Party that are pertinent to the proceeding brought before a court
and that the Contracting Party abstains from all remedies related to the
proceeding brought before a court that may aggrieve the Contracted Party;

e) Contracting Party offers to the Contracted Party a reasonable support
necessary to make a settlement or to defend the proceeding brought before a
court;

f) the infringement or supposed infringement was caused by Items supplied by the
Contracted Party under the terms of this Agreement; and

g) the infringement or supposed infringement does not derive from any System
modifications, by the Contracting Party, and not approved by the Contracted
Party.

34.3 Since properly notified, the Contracted Party will hold the Contracting
Party, its officers, employees and proxies, harmless from any actions, claims,
suits or proceedings brought before a court against the Contracting Party and
will indemnify it for any expenses, costs, unfavorable sentences and damages it
may be ascribed by means of judicial judgment or settlements made, resulting
from any infringements stipulated in this Clause.

34.4 This Clause 34 establishes the Contracted Party' sole obligation and the
Contracting Party's sole appeal concerning claims or infringements of
intellectual property rights argued by a third party in view of inadequate use
of the System, according to conditions stipulated in this Agreement.

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35. SUBCONTRACTING

35.1. In case the Contracted Party intends to subcontracting part of is
obligations under this Agreement, the Contracted Party should deliver
subcontracted parties names to the Contracting Party for its approval,
specifying obligations of each subcontracted party. Within 10 (ten) days after
receiving such notification, the Contracting Party should communicate to the
Contracted Party, in writing:

(a) The list approval of the subcontracted parties; or

(b) The list rejection of the subcontracted parties or of one specific
subcontracted party, providing, also, relevant, valid and detailed information
concerning the rejection. Information provided by the Contracting Party should
not, for whatever reason, be disclosed to third parties, including subcontracted
parties. In the absence of such notification by the Contracting Party, the list
of subcontracted parties will be considered approved after the aforementioned
termination date of 10 (ten) calendar days.

35.2. At all events, the Contracting Party will remain fully responsible for all
actions and/or nonfeasance of its subcontracted parties and for the strict
execution of this Agreement.

36. CONFIDENTIALITY

36.1 All information disclosed under this Agreement, be it disclosed in writing
or orally, should be considered confidential and exclusive, except if strictly
indicated as non-confidential at the time of its disclosure. The recipient Party
should clearly use, have used, disclose such non-confidential information to
third parties; except, however, if no provisions contained in this Clause is
considered as an assignment of any license as per any intellectual property
right.

36.2 Except as provided in sub-clause 36.3 below, the Party receiving such
confidential information assumes the obligation to handle it as strictly
confidential and will not disclose, directly or indirectly, to any other
individual, company, corporation, association or legal entity, for whatever
purposes, the confidential information then received and will not use or copy
such confidential information, except for this Agreement purpose. Such
confidential information may be disclosed only to those employees, advisers and
subcontracted parties of the recipient Party, who present the need to have
access to such information for the purpose that they are being disclosed, and
who have secrecy liability before the recipient Party.

36.3 Such liability will not enforce any obligation to any of the Parties with
regard to any part of such information, which:

a) is of the recipient Party's knowledge before it was received from the other
Party (as evidenced in the registration files of the recipient Party);

b) is of general knowledge or, (without the act practice or nonfeasance by the
recipient Party) become of general knowledge;

c) is provided to the recipient Party by a third party, who the recipient Party
believes in good faith is free to do such disclosure and without restriction
about such disclosure;

d) is disclosed to a third party by the proprietary Party of the confidential
information, without restriction about such disclosure;

e) is developed independently of the recipient Party without any confidential
information provided by the discloser Party.

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36.4 Notwithstanding any other Clause of this Agreement, the Contracting Party
consents herein with the disclosure of information concerning this Agreement
that may be necessary for the Contracted Party to transfer any accounts
receivable to any financial institution or other third party, considering the
condition agreed upon in sub-clause 36.2.

36.5 The secrecy obligation stipulated in this Clause 36 will survive to the
termination or expiration of this Agreement during a period of 5 (years) years,
counted as from its termination date.

37. INTERCEPTION

37.1 Contracting Party is aware that the "intercept" function is a technical
functional quality available in Assets, subject of this Agreement, allowing the
Contracting Party to comply with provisions established in the Act 9296/96,
which deals with telephone communication interceptions of any kind and, therein,
also recognizes that:

i) The "intercept" function may intercept third parties communications, which
may delineate a criminal violation, if used in disagreement with the applicable
legislation;

ii) Consequently, the use of such function will take place only with regard to
the aforementioned legislation and, therefore, requires the existence of a
specific judicial order emanated from a competent judge;

iii) The function scope provided by the Contracted Party does not comprise any
equipment (as for example, but not limited to, audio recording or data storage
equipment regarding monitored calls), which should form a monitoring center, in
which the function will be in conditions to be operated; and

iv) Each and every responsibility of the Contracted Party is limited to the
function supply, and the Contracted Party is not liable for the commissioning,
except for its implementation, and in this case such implementation will not
take place in the course of any monitoring operation, for the monitoring
accomplishment, or for the function use, and the Contracting Party declares that
it recognizes the legal limitation of the function use, which will be applied to
its employees, subcontracted parties and eventual proxies.

38. AGREEMENT EFFECTIVE DATE AND DURATION

38.1. This Agreement will be in force in the date of its signature and will be
effective until December 31st, 2004, and its effects should retroact back to May
8, 2003. This Agreement is subject of renewal upon mutual agreement, in writing,
by the Parties.

         38.1.1. Parties agree that, with regard to TIM CELLULAR, this Agreement
         effects should retroact back to June 01st, d 2003, instead of May 8,
         2003, and this Agreement will remain equally valid until December 31st,
         2004.

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39. TERMINATION

39.1 In case the Contracting Party becomes liable for a maximum compensation
fine under the terms of sub-clause 25.8, the Contracting Party may, upon
notification in writing, request to the Contracted Party for concluding the
Implementation of the delayed System or Part of the System within a specific
period, which will reasonably take into consideration technical conditions and
others in force and also delays that have already occurred, which will be not
inferior to 30 (thirty) days. If the Contracted Party does not conclude the
Implementation within such period, the Contracting Party will be liable to
promptly terminate the Agreement upon notification in writing to the Contracted
Party and without prejudicing the right of receiving the compensation fine
stipulated in this Agreement.

39.2 Any of the Parties will be entitled to terminate this Agreement notifying,
in writing, the other Party, upon the occurrence of any of the following events:

a) In case the other Party commits an infringement to this Agreement and, after
receiving a notification in writing specifying the infringement or nonfeasance,
does not remedy the violation within the period specified in such notification,
which should take into consideration all relevant circumstances and should not
be inferior to 30 (thirty) days.

b) In case of bankruptcy or insolvency processes are filed against the other
Party and such processes are not liquidated within 45 (forty five) days counted
as from the process filing date, or if the other Party applies for creditor's
composition.

c) On account of a Force Majeure event, as provided in Clause 31.

d) In the event the Contracting Party's licenses for operating the System are
revoked.

39.3 The termination or expiration of this Agreement, for whatever reason, will
not prejudice any right or liability of any of the Contracting Parties,
regarding to this Agreement, deriving from such termination or expiration.

39.4 In the event of this Agreement termination, for whatever reason defined in
this Clause, the Contracted Party will not be liable to any indemnity, being
entitled only for receiving payment for Assets already supplied and/or
manufactured, for Services already rendered (observed that such Assets and
Services are in accordance with this Agreement and its Attachments), as well as
for all costs incurred and properly proved by the Contracted Party with regard
to Purchase Orders already issued by the Contracting Party, however not yet
delivered by the Contracted Party, not limited to equipment, materials or
services already acquired from third parties by the Contracted Party and
personnel involved in their execution, until the effective date of this
Agreement termination. Such costs should be available for inspection by the
Contracting Party upon its previous request, in writing.

         39.4.1 Depending on the Purchase Orders execution level, the
         Contracting Party will have the option to request that the same are
         concluded and Assets and Services requested in it, are delivered to the
         Contracting Party, according to conditions agreed upon herein.

39.5 The termination or expiration of this Agreement will not cause to the
Contracting Party the termination of the right to use the licensed Software and
Documentation under the terms of this Agreement.

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40. JOINT RESPONSIBILITY

40.1. Ericsson Telecomunicacoes S.A. and Ericsson Servicos de Telecomunicacoes
Ltda are jointly responsible before the Contracting Party for any obligations
established in this Agreement, and the Contracting Party may require from both
or from one of them the full compliance with all liabilities established in this
Agreement.

41. NOTIFICATIONS

41.1 All communications provided in this Agreement will be made in writing and e
provided for delivery in hands or by registered letter for the following
addresses:

For the Contracted Party:

Sr. Lourenco Pinto Coelho

Rua Maria Prestes Maia, n.(0) 300

Sao Paulo - Capital

ZIP CODE 02047-901

For the Contracting Party:

To MAXITEL, TIM SUL, OPERADORAS TIM NORDESTE E TIM CELULAR S.A.:

Sr. Jorge Firpo

Rua Fonseca Teles, n(0) 18, Sao Cristovao

Rio de Janeiro - RJ.

ZIP CODE: 20.940-200

41.2 All notifications will be effective as from their receiving by the other
Party.

42. GENERAL PROVISIONS

42.1 No additions or modifications in this Agreement will be in force or entail
any of the Parties except if agreed upon in writing and signed by properly
authorized representatives of each Party.

42.2. This Agreement establishes and constitutes the complete agreement between
the Contracting Party and the Contracted Party concerning its subject matter,
and will replace any and all previous agreements, understandings, promises and
representations made by one Party to the other, with regard to this subject.

42.3. No one Party will make publicity or disclose any information connected to
this Agreement without the previous authorization of the other Party, except
that the Contracted Party may disclose its appointment as the Contracted Party
and the Agreement amount.

42.4. No one Party will be entitled to assign, except as provided in sub-clause
33.7, this Agreement or any right or obligation herein contained without the
previous consent, in writing, of the other Party.

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42.5. Notwithstanding any other provisions established in this Agreement, the
Contracted Party will be entitled to: (i) perform the assignment and
transference of any receivable deriving from this Agreement to any financial
institution or other third party; (ii) grant securities, factoring, discounts,
credits, banking collections and collaterals deriving from this Agreement, upon
the Contracting Party's previous consent, in writing. Therefore, the Contracted
Party should address a notification, in writing, to the Contracting Party and it
will have a period of 7 (seven) days counted as from its receiving, to inform
its decision. In the event the Contracting Party does not inform its decision
within that period previously agreed, it will be considered that the Contracting
Party has authorized the receivable granting, object of the Contracted Party's
correspondence.

42.6. The Portuguese language will be considered as the language used in all
documents and correspondences related to this Agreement signature, except if
otherwise agreed upon between the Parties, as well as in what refers to some
Technical Specifications.

42.7. This Agreement will be construed and governed according to the Brazilian
Federative Republic legislations.

42.8. The allowance of any term, forbearance or waiver of an obligation from one
Party to the other Party will be considered isolated or peculiar to that
specific occasion or purpose, not prejudicing the future compliance with terms
and conditions of this Agreement. If any of the Parties does not exercise, at
the appropriate time, the right deriving from this Agreement, such act will not
represent waiver or compliance, and should be construed as mere liberality, and
such right may be exercised at any time.

42.9. Contracting Party hereby is informed that the Hardware sale and the
Software and Documentation license transference by the Contracting Party, as
provided by the sub-clause 33.7, under an export situation, may require an
exportation / re-exportation license of certain Sweden and/or USA governmental
agencies. Contracting Party is considered as a GSM operator and should become a
"GSM Association" member, if applicable, in order to comply with applicable
international rules. Contracted Party will be responsible for encumbrances of
any kind, such as: penalties, fines, indemnities, among other, that by chance
may be imposed to the Contracting Party in case of loss of the right of use or
changing of algorithms not caused by the Contracted Party. All costs concerning
to the "GSM Association" affiliation and/or acquisition of licenses,
authorizations and algorithms will be for the Contracting Party's account.

42.10. If any of the terms and conditions provided in this Agreement bet to be
or become null for whatever reason, it should not affect all other provisions of
this Agreement and, in such event, the Parties will use their respective
reasonable endeavors to immediately replace such null provision by new
provisions. The content of new provisions should, at the utmost possible,
correspond closely to the legal and economical content of former terms and
conditions.

42.11. This Agreement binds of its own the Parties and its successors and, in
case of companies' succession, by any of its forms, subrogates to the succeeding
entity all rights and obligations assumed in this Agreement.

43. ARBITRATION

43.1. In case of a controversy occurrence between the Parties, concerning this
Agreement and independent or order, the Parties will submit the controversy to
arbitration.

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43.2. Parties agree that the arbitration result will be binding to them and no
appeal to the arbitration judgment will take place.

43.3. The Parties hereby submit to the FIESP Arbitration Committee and to its
rules to settle eventual doubts deriving from this Agreement.

43.4. The Parties will elect arbitrators who should resolve the question, in
common agreement and in a number of 3 (three), among the FIESP Arbitration
Committee staff of arbitrators.

43.5. The loser Party will support all arbitration costs.

43.6. A legal adviser may represent the Parties, at their discretion, to follow
the procedure. Each Party will support all expenses concerning its own legal
adviser.

43.7. In case there are no conditions to select arbitrators to solve the
question, in common agreement, the FIESP Arbitration Committee should indicate
them, according to its own rules.

43.8. The Arbitration procedure will commence upon simple notification from one
Party to the other, communicating its intention to look for the arbitration
court to solve the pending subject.

IN WITNESS whereof the Parties hereto have executed this Agreement in 6 (six)
copies with the same content and format..

Date October 2, 2003
     ...............................

Place Rio de Janeiro
      ..............................

MAXITEL S.A.

By:.........................        By:........................

Name:.......................        Name:.......................

TIM SUL S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

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TIM CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELPE CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELERN CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELEPISA CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELECEARA CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELASA CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

TELPA CELULAR S.A.

By: /s/ Jorge Firpo            By: /s/ Luis Roberto Antonik
    ....................           ........................................

Name: Jorge Firpo              Name: Luis Roberto Antonik
      ..................             ......................................

ERICSSON TELECOMUNICACOES S.A.

By:.........................        By:........................

Name:.......................        Name:........................

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ERICSSON SERVICES DE TELECOMUNICACOES LTDA.

By:.........................        By:........................

Name:.......................        Name:........................

Witnesses:

Name:.......................        Name:........................

CPF:........................        CPF:.........................

            Last page of the Agreement of Assets and Services Supply

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[GRAPHIC OMITTED]                                              [GRAPHIC OMITTED]

                                 Attachment I to
       Goods and Service Supply Agreement concerning the Provisioning and
                Implementation of a GSM Mobile Telephone System

--------------------------------------------------------------------------------

                       ATTACHMENT 1 - LIST OF UNIT PRICES,
                       DISCOUNTS, VOUCHERS AND INCENTIVES

*   represents omitted information, which is the subject of a request for
    confidential treatment with the SEC

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[GRAPHIC OMITTED]                                              [GRAPHIC OMITTED]

                                 Attachment I to
       Goods and Service Supply Agreement concerning the Provisioning and
                Implementation of a GSM Mobile Telephone System

--------------------------------------------------------------------------------

*

                                                                             2/3

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[GRAPHIC OMITTED]                                              [GRAPHIC OMITTED]

                                 Attachment I to
       Goods and Service Supply Agreement concerning the Provisioning and
                Implementation of a GSM Mobile Telephone System

--------------------------------------------------------------------------------

*

                                                                             3/3

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[GRAPHIC OMITTED]                                             [GRAPHIC OMITTED]

                          Appendix A of Attachment 1 to
          Goods and Services Supply Agreement regarding the Supply and
                Implementation of a GMS Mobile Telephone System

--------------------------------------------------------------------------------

                                   APPENDIX A

*   represents omitted information, which is the subject of a request for
    confidential treatment with the SEC

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<PAGE>

[GRAPHIC OMITTED]                                             [GRAPHIC OMITTED]

                          Appendix A of Attachment 1 to
          Goods and Services Supply Agreement regarding the Supply and
                Implementation of a GMS Mobile Telephone System

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*

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                          Appendix B of Attachment 1 to
 Goods and Services Supply Agreement regarding the Supply and Implementation of
                          a GMS Mobile Telephone System

--------------------------------------------------------------------------------

                                   APPENDIX B

* represents omitted information, which is the subject of a request for
  confidential treatment with the SEC

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                          Appendix B of Attachment 1 to
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                          a GMS Mobile Telephone System

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          *

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