Document:

Exhibit 4(b).5

 

 

AUTHORIZATION TERM PVCP/SPV N.o 017/2002-ANATEL

AUTHORIZATION TERM OF THE PERSONAL MOBILE SERVICE ENTERED BY 

AGÊNCIA NACIONAL DE TELECOMUNICAÇÃO (NATIONAL

TELECOMMUNICATION AGENCY)- ANATEL AND

GLOBAL TELECOM S.A.

 

 

Hereby, on the one part, the AGÊNCIA NACIONAL DE TELECOMUNICAÇÕES (NATIONAL TELECOMMUNICATION AGENCY)– ANATEL, hereinafter referred to as ANATEL, an entity that is a part of the UNION, as per Federal Act n.o 9.472, of the 16th of July of 1997, Lei Geral de Telecomunicações – LGT( General Telecommunications Act – LGT) , registered at the General Registry of Income Tax Payers of the Ministry of Finance - CGC/MF under n.o 02.030.715/0001-12, here represented by the President of the Council of ANATEL LUIZ GUILHERME SCHYMURA DE OLIVEIRA together with the Counselor LUIZ TITO CERASOLI, and on the other part, GLOBAL TELECOM S.A., registered at the General Registry of Income Tax Payers of the Ministry of Finance -CNPJ under no 02.449.992/0001-64, herein represented by its President, GILSON RONDINELLI FILHO, Brazilian, married, engineer, ID card –RG no 4.347.710 - SSP/SP and by the Executive Vice-President, MARIA PAULA DE ALMEIDA MARTINS CANAIS, Portuguese, married, Mathematician, National Registration of Foreigners - RNE no V329152-L, hereinafter referred to as AUTHORIZED, enter into the present AUTHORIZATION TERM, Anatel Case n.o 53500.001479/2001, that shall be governed by the following sections:

 

 

Chapter I

 

Subject Matter, Area and term of the Authorization

 

Section 1.1 – The subject-matter of this Term is the issuance of Authorization for the exploitation of the Personal Mobile Service- SMP, rendered under private regime, in the geographic area formed by the territories of the State of Paraná e Santa Catarina, in the Region III of the PGA-SMP.

 

§1o – The subject-matter hereof include the Personal Mobile Service, rendered under private regime, according to the Anatel Regulation, and in special, as per the provisions in Regulation of the SMP and in the General Plan of Authorizations of the SMP.

 

§2o – The current Authorization is issued based on section 214, paragraph V, of the LGT General Telecommunications Act ) and in the “Rule for the Adjustment of Grant Instruments and Authorization of the Mobile Personal Service- SMC for the Personal Mobile Service – SMP, approved by the Resolution ANATEL n.o 318, of the 27th of September of 2002, and amended by the Resolution ANATEL n.o 326, of the 28th of November of 2002, hereinafter referred to as ADJUSTMENT RULE in substitution of the GRANT AGREEMENT No 10/98-ANATEL, of the 8th of April of 1998, D.O.U of the 9th of April of 1998, hereinafter referred to as SUBSTITUTED INSTRUMENT.

 

SECTION 1.2 - Personal Mobile Service is the land mobile telecommunication service of collective interest that enables the communication between the mobile stations and from a mobile station to other stations, once acknowledged the provisions of the regulation.

 

SECTION 1.3 – The AUTHORIZED is entitled to the industrial exploitation of the means related to services rendering, once observed the provisions in the regulations as well as those in sections 154 and 155 of the LGT.

 

SECTION 1.4 – The term of this Authorization for the exploitation of the SMP is not determined.

 

  

  

  

 

SECTION 1.5 – The service shall be exploited with the use, by the AUTHORIZED , of the sub-band of radio frequencies foreseen in the SUBSTITUTED INSTRUMENT, indicated below :

 

Transmission from the Mobile Station : 824,0 to 835,0 MHz / 845,0 to 846,5 MHz

 

Transmission from the Radio base Station : 869,0 to 880,0 MHz / 890,0 to 891,5 MHz

 

SECTION 1.6 – The right to use the radio frequencies mentioned in the previous SECTION shall remain in force until the 8th of April of 2013 that corresponds to the remaining term extended a single time for 15 years, being such extension against payment.

 

§1o – The use of the radio frequency shall occur in primarily and restricted to the Services Rendering Area.

 

§2o – The right to use the radio frequency depends on its efficient and proper use.

 

§3o – Radio frequency sharing, when it does not imply harmful interference or impose limits to the rendering of the SMP, may be authorized by Anatel.

 

SECTION 1.7 – The AUTHORIZED , in order to extend the right to use the radio-frequencies related hereto, shall pay, every two years, during the extension term, encumbrance corresponding to 2% (two per cent ) of the annual income of the year prior to the payment, of the SMP, free from taxes and social security taxes.

 

§1o In the calculation of the amount referred to in the caput of this SECTION, shall be considered the net income derived from the Alternative and Basic Service Plan, subject matter hereof.

 

§2o The calculation of the percentage referred to in the caput of this SECTION shall always be based on the net income of deduction of taxes and social taxes, determined between January and December of the previous year and obtained in the financial statements elaborated according to the fundamental accounting principles approved by the Management of the AUTHORIZED and audited by independent auditors, and maturity date shall be the 30 (thirty) of April of the subsequent year after the encumbrance is ascertained.

 

§3o The first installment of the encumbrance shall be due on the 30th (thirtieth ) of April of 2015, calculated based on the net income ascertained from the 1st of January to the 31st of December of 2014, and the subsequent installments shall be due at each twenty four months, having as the base date the calculation of the income of the previous year.

 

§4o The delay in payment of the encumbrance foreseen in this SECTION will imply charge of arrears fee of 0,33% (zero point thirty three per cent ) a day, up to the limit of 10% (ten per cent), added of the referential SELIC tax for federal bonds, to be applied over the value of the debt, considering all days of delay in payment.

 

SECTION 1.8 – The petition for the extension of the right to use radio frequencies shall be forwarded to Anatel in up to thirty months, prior to the due date of the original term.

 

Single Paragraph. Dismissal will only occur if the involved party is not making proper and rational use of the radio frequencies, if it has repeatedly incurred in violations in the performance of its activities, or if it is necessary to change the destination of the use of the radio frequency .

 

SECTION 1.9 - Anatel is AUTHORIZED to bring a new action of Authorization Grant for the exploitation of the SMP, in case an extension petition of up to 24 (twenty four) months prior to the original maturity date is not suddenly formulated.

 

 

Chapter II

 

Replacement Value

 

  

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SECTION 2.1 – The value of replacement of the SUBSTITUTED INSTRUMENT hereby, is R$ 9.000,00 (nine thousand reais).

 

Single Paragraph. Non payment of the outstanding installments, derived from past commitments, related to the values owed by the Grant or Authorization of the Cellular Mobile Service - SMC, shall imply forfeiture hereof, regardless the application of other foreseen penalties.

 

 

Chapter III

 

Form and Conditions for the Rendering of Service

 

SECTION 3.1 – The AUTHORIZED promises to render the service, subject-matter hereof, in a way as to fully fulfill the obligations inherent to the service rendered under private regime, once observed the criteria , formulae and parameters herein defined.

 

Single Paragraph. The non-fulfillment of the obligations related to the subject-matter hereof, shall afford the application of the sanctions foreseen herein, shall allow for the temporary suspension, on the part of Anatel and, according to the case, forfeiture hereof shall be adjudicated, as per section 37 of the LGT. SECTION 3.2 - THE AUTHORIZED shall exploit the service, subject-matter hereof at its own risks, within the regime of broad and fair competition set forth in LGT, being compensated by the prices charged, as per provisions herein.

 

§1o THE AUTHORIZED shall not be entitled to any type of exclusivity, any possibility of financial economical balance guarantee, and may not claim rights as to the admission of new providers of the same service.

 

§2o THE AUTHORIZED will not have acquired rights to the permanence of the conditions in force with the issuance hereof, or of the star of the activities, and shall observe the new conditions imposed by the law and by regulation.

 

§3o The norms shall grant enough time for the adjustment to the new conditions.

 

SECTION 3.3 – THE AUTHORIZED shall keep free access to emergency public services according to what was set forth in the regulation.

 

SECTION 3.4 – THE AUTHORIZED shall ensure to its user the free exercise of choice of STFC provider for long distance calls, as per the regulation of SMP, especially in the ADJUSTMENT RULE.

 

SECTION 3.5 – Changes in the shareholder control of the Authorized are subject to control on the part of Anatel for purposes of verification of the conditions that are essential for the forwarding and maintenance of the Authorization, as per the regulation.

 

Single Paragraph. These are essential for the forwarding and maintenance of the Authorization, among others, those foreseen in the SMP General Authorization Plan, section 10, § 2o of the PGO and in article 133 of the LGT.

 

SECTION 3.6 – The conveyance of the Authorization Plan is subject to the approval on the part of Anatel, once observed the requirements of the §2o of section 136 of the LGT.

 

Single Paragraph. For the purposes of the paragraph I of section 98 of LGT, shall be considered the operation time of the Cellular Mobile Service during the enforcement of the SUBSTITUTED INSTRUMENT.

 

 

SECTION 3.7 - The AUTHORIZED shall freely determine the prices to be charged for the rendering of the SMP, defining the Services Plan with structures, forms, criteria and values that shall be reasonable and non discriminatory, and that may vary due to technical characteristics, of 

 

  

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specific costs and use offered to the users, as per definition of the SMP regulation, specially in the ADJUSTMENT RULE.

 

 

Chapter IV

 

Coverage Commitments

 

SECTION 4.1 – Coverage commitments foreseen in the SUBSTITUTED INSTRUMENT shall be maintained, including the coverage and service obligations.

 

SECTION 4.2 – The non-compliance of the commitments causes the Authorized to be subject to sanctions foreseen herein, and in the regulation, and as a result, the termination of the Authorization may occur.

 

 

Chapter V

 

Quality of Service

 

SECTION 5.1 – It is an assumption hereof the adequate quality of the services rendered by the AUTHORIZED , being as such considered, the service that satisfies the conditions of regularity, efficiency, safety, updating, generality and courtesy.

 

§1o - Regularity will be characterized by the continuous exploitation of the service with strict compliance with what is set forth in the Anatel rules.

 

§2o - Efficiency will be characterized by the attainment and maintenance of the parameters contained herein and by the service to the user , rendered within the term foreseen herein.

 

§3o - Safety in the e4xploitationof the service shall be characterized by the confidentiality pf the data related to the use of the service by the users, as well as by the full maintenance of the confidentiality regarding the conveyed information in the scope of its exploitation.

 

§4o - Update will be characterized by the modernity of the equipment, of the premises and techniques of exploitation of the service, with the use of technological advances that definitely will benefit the users, once respected the provisions hereof.

 

§5o - Generality will be characterized by the non discriminatory rendering of services to any and all users, with the commitment on the part of the Authorized to render the service to whoever requests it as per the regulation.

 

§6o - Courtesy will be characterized by the respectful and immediate service rendered to all users of the authorized service, as well as by the compliance with the obligations to inform and provide immediate and polite services to all, users or non users that may request from the AUTHORIZED, information, provisions or any kind of request as per the determinations hereof.

 

SECTION 5.2 - THE AUTHORIZED shall meet the quality targets determined in the Plano Geral de Metas de Qualidade - PGNQ ( General Target Plan of Quality- PGMQ) for the SMP.

 

Single Paragraph. For the purposes of the provisions in the §5o of section 1st of the PGMQ – SMP, it shall be considered as the starting point of the commercial operation of the SMP in a place where there already exists SMC services rendering, the publishing date of the extract hereof.

 

SECTION 5.3 – The exploitation of the authorized service may only be interrupted according to the Regulation of the SMP, published by Anatel.

 

 

Chapter VI

 

Numbering Plan

 

  

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SECTION 6.1 - THE AUTHORIZED compromises to obey the Numbering Regulations published by Anatel, and shall ensure to the user of the service, the portability of the access codes as per regulation.

 

 

Chapter VII

 

Users Charges

 

 

SECTION 7.1 – The amount, measuring form and the criteria for charging for the services rendered, shall be set forth by the Authorized, based on the determinations of the SMP Regulation, once observed the content of section 3.7 hereof.

 

 

Chapter VIII

 

Users Rights and Duties

 

SECTION 8.1 – Users Rights and Duties are those set forth in the LGT and in the regulation, at no loss of the rights foreseen in Law no 8.078, of the 11th of November of 1990 in the cases regulated by it, nor of those included in the SMP rendering agreement.

 

 

Chapter IX

 

Authorized Rights and Duties

 

SECTION 9.1 – The rights and duties of the Authorized are those set forth in the LGT and in the regulation.

 

SECTION 9.2 – In services hiring and equipment and material acquisition in relation herewith, the Authorized obliges to consider offers from independent suppliers, including the national ones, and to base its decisions, in respect to the several offers presented, in the compliance of the objective price criteria, delivery conditions and technical specifications in the appropriate regulation.

 

Single Paragraph. Regarding the mentioned hiring process, the procedures of the Regulation on the Services Hiring Procedures and Material and Equipment Acquisition by the Telecommunication Services Providers, approved by the Resolution n.o 155 of Anatel, of the 5th of August of 1999.

 

 

Chapter X

 

Anatel Obligations and Prerogatives

 

SECTION 10.1 – Aside from other prerogatives inherent to its regulatory organ function and from the other obligations derived hereof, Anatel will :

 

I – follow up and inspect the exploitation of the service, in order to comply with the regulation;

II – regulate the exploitation of the authorized service;

III – apply the punishment foreseen in the service regulation, specially herein;

IV – to watch over the good quality of the service, to receive, select and solve complaints and claims of the users, making them aware, within a 90 days period of time, of the actions taken to avoid them to be deprived of their rights;

V – to declare terminated the Authorization in the events foreseen in the LGT;

VI – to watch over the guarantee of interconnection, annulling eventual issues arisen between the AUTHORIZED and the other providers;

VII – to constantly follow up the relationship between the Authorized and the other providers, solving conflicts that may arise;

VIII – to restrain behaviors of the Authorized that are against the free competition regime, observed in the competences of the CADE, the regulation and specially the content of sections 

 

  

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10.2. and 10.3. hereof;

IX – to perform the activity of inspecting the service, as per provisions herein; and

X – collect taxes related to FISTEL, adopting the provisions foreseen in law.

 

SECTION 10.2 - Anatel might file a Proceeding to Ascertain the Non Compliance of the Obligations (PADO), veered towards ascertaining untruthfulness or non-substance of the conditions stated by the AUTHORIZED , related to the non-participation in the control of the other companies or to other economical concentration preventive bars, whenever there are signs of relevant influence of such , of its associated companies, controlled or controllers over the legal entity of the SMP provider, in the terms of the Regulation for the Control and Transfer Verification in Companies Providers of Telecommunication Services, approved by the Resolution n.o 101 of Anatel, of the 04th of February of 1999.

 

Single Paragraph. The evidence, after the procedure foreseen in this section of the existence of any situation that characterizes untruthfulness or lack of substance of the conditions stated by the Authorized shall configure the disfranchisement hereof, according to section 139 of the LGT.

 

SECTION 10.3 - Anatel may still file an administrative procedure veered towards ascertaining any misdemeanor against the economical order foreseen in Law n.o 8.884/94.

 

 

Chapter XI

 

Inspection regime

 

SECTION 11.1 - Anatel shall perform the inspection of the services so as to ensure the compliance with the commitments herein.

 

§1o - Inspection to be performed by Anatel will cover the inspection and the follow up of the activities, equipment and premises of the AUTHORIZED , implying broad access to all data and information of the Authorized or of third parties.

 

§2o - Information gathered during inspection activities will be published in the Library, except for those, that by request of the AUTHORIZED , are considered as confidential by Anatel.

 

§3o - Information that are considered as confidential , as per the previous paragraph, shall only be used in the procedures related hereto, responding to Anatel and to those indicated by Anatel, for any disclosure, broad or restricted, of such information outside the usage scope.

 

SECTION 11.2 – The AUTHORIZED , by means of an appointed representative, may follow all and every activity of Anatel inspection, not being entitled to oppose or prevent the inspection, under risk of incurring in the punishment foreseen in the regulation.

 

 

Chapter XII

 

Telecommunication Nets and Access to Visiting Users

 

SECTION 12.1 – THE AUTHORIZED regarding the implementation and operation of the Telecommunication Nets veered towards providing support to SMP, shall observe the provisions in the regulation, specially in the Telecommunication Services Regulation n.o 73, of the 25th of November of 1998; in the General Regulation of Interconnection, approved by the Resolution no 40, of the 23rd of July of 1998; and in the regulation of the SMP.

 

Single Paragraph. The change in technology standards, promoted by the AUTHORIZED , may not burden unilateral and arbitrarily the user, including with respect to the existing conditions of services to the visiting users.

 

  

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SECTION 12.2 – Compensation by the use of nets between the Authorized and the other providers of telecommunication services, shall comply with the provision in section 152 of the LGT and in the SMP regulation, especially in the ADJUSTMENT RULE.

 

Single Paragraph. The document foreseen in item 7 of the ADJUSTMENT RULE becomes hereinafter Attachment I hereto.

 

 

Chapter XIII

 

Sanctions

 

SECTION 13.1 - THE AUTHORIZED is subject to Anatel inspection, once respected the legal provisions and related regulations, and shall, whenever required to do so, be accountable for as per regulations of the SMP, allowing free access to its technical resources and accounting records.

 

SECTION 13.2 – non-compliance with conditions or commitments associated to the Authorization, shall subject the Authorized to caveat sanctions, fines, temporary probation or forfeiture, as per provision of the SMP.

 

 

Chapter XIV

 

Termination of the Authorization

 

SECTION 14.1 – Authorization shall be deemed to be terminated due to disfranchisement, forfeiture, decay, waive or annulment, as per sections 138 to 144 of the LGT and according to the proceedings in the regulation.

 

Single Paragraph. The termination statement shall not elide the application of the adequate punishments, as per provisions hereof, by the wrongdoings performed by the AUTHORIZED .

 

 

Chapter XV

 

Legal Regime and Applicable documents

 

SECTION 15.1 – This Authorization is governed, without detracting the other integrant rules of the Brazilian Legal Order, by the LGT, and the regulations derived thereof.

 

SECTION 15.2 – In the exploitation of the services authorized hereby, the regulations of Anatel shall be complied, as part hereof, specially the documents related with the SMP Regulation.

 

SECTION 15.4 – In the interpretation of the norms and provisions hereof, shall be taken into consideration, aside from the documents referred to in this Chapter, the general hermeneutic rules and the norms and principles contained in the LGT.

 

 

Chapter XVI

 

Transitory Provisions

 

SECTION 16.1 – Until the Approval or the covenant of the VU-M, as per the option of the SMP provider, shall be maintained both the value of the Net Compensation , and the criteria for the processing and values conveyance between the providers of Cellular Mobile Services and the Fixed Commuted Telephone Service.

 

 

Chapter XVII

 

Venue

 

  

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SECTION 17.1 - The Court of the Judiciary Section of the Federal Justice of Brasilia, Federal District , is hereby elected to settle any conflicts arising herefrom or relating hereto, to the exclusion of any other, however privileged.

 

 

Chapter XVIII

 

Final Provisions

 

SECTION 18.1 – This Authorization Term shall become in force after the disclosure of its extract in the Federal Official Gazette.

 

SECTION 18.2 – Except for the provisions herein entrusted, any other provisions of the Substituted Instrument become null, as per §2o of section 1.1.

 

IN WITNESS WHEREOF, the parties sign this document in 03 ( three) counterparts of equal tenor and form, in the presence of witnesses who also sign below, so that it will produce the due legal effects.

 

Brasília, the 10th of December of 2002.

 

 

On behalf of ANATEL:

	 	 
	
LUIZ GUILHERME SCHYMURA DE OLIVEIRA

	
President of the Board

 

	 	 
	
LUIZ TITO CERASOLI

	
Counselor

 

 

On behalf of the AUTHORIZED :

	 	 
	
GILSON RONDINELLI FILHO

	
President

 

	 	 
	
MARIA PAULA DE ALMEIDA MARTINS CANAIS

	
Executive Vice-President

 

 

Witnesses:

	 	 
	
JARBAS JOSÉ VALENTE

	
4.346/D CREA-DF

 

	 	 
	
BRUNO DE CARVALHO RAMOS

	
5.060.107.391/D CREA-SP

 

  

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ATTACHMENT I

STATEMENT OF OPTION

 

 

According to what is provided in item 7 of the ADJUSTMENT RULE, Global Telecom S.A., General Taxpayer’s register - CNPJ N.o 02.449.992/0001-64, herein represented by its President, GILSON RONDINELLI FILHO, Brazilian, married, engineer, ID Card – RG no 4.347.710 - SSP/SP, opts for the submission to item 5 and its sub-items of the Norms of Compensation Criteria by the Use of the Nets of the Providers of Personal Mobile Service – SMP, approved by the Resolution no 319, of the 27th of September of 2002, requesting the approval of the TU-M whose maximum value shall be the maximum value of the initial VU-M of its Service Area.

 

 

Brasília, the 10th of December of 2002.

 

	 	 
	
GILSON RONDINELLI FILHO

	
President

 

9Exhibit 4(b).6

 

AUTHORIZATION AGREEMENT PVCP/SPV NUMBER 011/2003 - ANATE

AUTHORIZATION TERM FOR PERSONAL MOBILE SERVICE CELEBRATED BETWEEN THE BRAZILIAN

TELECOMMUNICATIONS AGENCY - ANATEL - AND TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.

By means of the present Authorization Term, on the one side THE BRAZILIAN NATIONAL TELECOMMUNICATIONS AGENCY - ANATEL - henceforward referred to as ANATEL, which is an entity of the federal government according to Federal Law 9472 of July 16, 1997, the General Telecommunications Law (Lei Geral das Telecomunicacoes - LGT), registered with the Brazilian Tax Roll under number (CGC/MF) 02.030.715/0001-12 and herein represented by the President of the Board of Directors of ANATEL Mr. LUIZ GUILHERME SCHYMURA DE OLIVEIRA, in conjunction with member of the Board of Directors, LUIZ TITO CERASOLI, and on the other side Tele Centro Oeste Celular Participacoes S.A., registered with the Brazilian Tax Roll under number (CGC/MF) 02.558.132/0001-69, herein represented by its acting Chief Executive Officer MR. SERGIO ASSENCO TAVARES DOS SANTOS, a Brazilian engineer, widowed, General Registry number 131.306 SSP/DF, and by its Director of Administration and Human Resources Mr. GETULIO NERY CARDOSO, a Brazilian engineer, married, General Registry number 290.486 SSP/DF, henceforward referred to as AUTHORIZEE, celebrate the present Authorization Term registered with ANATEL under number 53500.000263/2003 and agree to abide by the following provisions:

CHAPTER I

 

OBJECT, AREA, AND PERIOD OF THE AUTHORIZATION

CLAUSE 1.1 – The present Agreement is the issuance of the Authorization to exploit the Personal Mobile Service - PMS - provided under a private business system in the geographical area constituted by the Federal District of Brazil, Region II of the PGA-SMP.

  

  

  

 

PARAGRAPH ONE. The Object of this Authorization comprises the Personal Mobile Services provided under a private business regime, in conformity with Anatel regulatory requirements and particularly compliant with the provisions of the PMS Regulation and of the General Authorization Plan for the PMS.

PARAGRAPH TWO. The authorization herein is issued based on article 214, subsection V of the General Telecommunications Law and on the Rule for the Adaptation of the Authorization and Concession Instruments from Cellular Mobile Service - CMS to Personal Mobile Service - PMS (Norma de Adaptacao dosInstrumentos de Concessao e de Autorizacao do Servico Movel Celular - SMC para oServico Movel Pessoal - SMP), approved by Anatel Resolution number 318, of September 27, 2002 and amended by Anatel Resolution number 326, of November 28, 2002, henceforward referred to as ADAPTATION RULE, replacing CONCESSION CONTRACT No. 031/97-DOTC-SFO-MC, of November 4, 1997, published in Diario Oficial da Uniao (Brazilian Federal Official Gazette) on November 5 1997, henceforward referred to as REPLACED INSTRUMENT.

CLAUSE 1.2 - Personal  Mobile  Service  is  the  terrestrial  mobile telecommunications service of collective interest which allows communication among mobile stations and from mobile stations to other stations, observing the terms of the regulations.

CLAUSE 1.3 - The AUTHORIZEE has the right to exploit the means related to the rendering of the services, observing the terms of the regulations as well as of articles 154 and 155 of the General Telecommunications Law.

CLAUSE 1.4 - This authorization is in effect for an indeterminate period of time.

CLAUSE 1.5 - The service shall be exploited with the use, by the AUTHORIZEE, of the subrange of radiofrequencies  set forth in the REPLACED INSTRUMENT, designated below:

Mobile Station Transmission: 824.0 to 835.0 MHz / 845.0 to 846.5 MHz

 

  

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Radiobase Station Transmission: 869.0 to 880.0 MHz / 890.0 to 891.5 MHz

CLAUSE 1.6 - The right to use the radiofrequencies mentioned in the previous clause will be in effect until July 24, 2006, which corresponds to the remaining period. This period can be extended only one single time for 15 (fifteen) years, and such extension implies payment by the AUTHORIZEE.

PARAGRAPH ONE. The radiofrequency will be used on a primary basis and such use will be restricted to the respective Service Area.

PARAGRAPH TWO. The right to use the radiofrequency is conditional upon it's efficient and appropriate use.

PARAGRAPH THREE. The sharing of the radiofrequency may be authorized by Anatel, provided that such sharing does not imply harmful interference or impose limitations to the rendering of PMS.

CLAUSE 1.7 - The AUTHORIZEE shall, for the extension of the right to use radiofrequencies associated to this Authorization, pay a biennial fee during the extension period, corresponding to 2% (two percent) of its PMS revenues in the year previous to the payment, net of applicable taxes and social contributions.

PARAGRAPH ONE. When calculating the amount referred to in the head of this Clause, the net revenue considered will be that resulting from the application of the Service,  the Basic, and the Alternative plans,  object of the authorization herein.

PARAGRAPH TWO. The percentage referred to in the head of this clause will be calculated relative to the revenues, net of tax deductions and applicable contributions, attained between January and December of the previous year and obtained from the financial statements prepared according to basic accounting principles  approved by the AUTHORIZEE's  Administration  and audited by independent auditors, and the payment will be due on April 30 of the year following the calculation of the fee.

  

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PARAGRAPH THREE. The first installment of the fee will be due on April 30, 2008 and will be computed considering the net income calculated from January 1 to December 31, 2007. The subsequent installments will be due every 24 (twenty four) months, and will be calculated based on the previous year's revenues.

PARAGRAPH FOUR. Any delay in paying this fee will imply in payment of a fine of 0.33% (point thirty-three percent) per day of delay, until a maximum limit of 10% (ten percent), added to the SELIC reference fee for federal bonds, which shall be applied to the amount of the debt considering the total number of days in which the payment was overdue.

CLAUSE 1.8 - Requirement to extend the right to use radiofrequencies should be forwarded to Anatel within thirty months prior to the original maturity date.

SOLE PARAGRAPH. The requirement will be refused only if the interested party is not making rational and appropriate use of the radiofrequencies, if the interested party has committed repeated infractions in its activities, or if it is necessary to alter the destination of the use of the radiofrequency.

CHAPTER II

 

VALUE OF THE REPLACEMENT

CLAUSE 2.1 - The value of the replacement of the REPLACED INSTRUMENT by the AUTHORIZATION TERM herein is R$ 9,000.00 (nine thousand Brazilian reais).

SOLE PARAGRAPH.  Failure to pay any pending installments resulting from commitments  assumed  regarding the amounts owed for the  Concession or Authorization of Cellular Mobile Service - CMS, will imply in the forfeiture of the Authorization herein, regardless of the application of other penalties established.

CHAPTER III

 

MODE, FORM, AND CONDITIONS OF THE SERVICE

  

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CLAUSE 3.1 - The AUTHORIZEE is obliged to render the services which are object of the Authorization in such a way as to fully meet the obligations inherent to the service rendered under a private regime, observing the criteria, formulas, and parameters defined in this Authorization Term.

PARAGRAPH ONE. Default in meeting the obligations related to the object of this Authorization Term will ensue the application of the sanctions set forth herein and allow temporary suspension by Anatel. Additionally, according to the case, the forfeiture of this Authorization will be declared, as provided by article number 137 of the General Telecommunications Law.

CLAUSE 3.2 - The  AUTHORIZEE  will  exploit the  service  object of this Authorization at its own account and risk, under the regime of broad and fair competition established in the General Telecommunications Law, and will be paid by means of prices changed, as determined by this Authorization Term.

PARAGRAPH ONE. The AUTHORIZEE will not be entitled to any type of exclusivity, or to any assumption of guarantee of financial or economic balance, neither will it be entitled to claim any right as to the admission of new providers of the same service.

PARAGRAPH TWO. The AUTHORIZEE will not have any vested right to the maintenance of the conditions in force after the issuance of the present Authorization or the start of activities, and shall abide by the new conditions provided by law and by the applicable regulations.

PARAGRAPH THREE. The rules shall grant a sufficient amount of time forcompliance with the new conditions.

CLAUSE 3.3 - The  AUTHORIZEE shall grant free access to public emergency services, as defined in the regulations.

CLAUSE 3.4 - The Authorizee shall guarantee to its users the free exercise of their choice of Switched Fixed Telephone Services provider for forwarding

 

  

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the long-distance messages, in compliance with the provisions under the PMS regulation, particularly under the Adaptation Rule.

CLAUSE 3.5 - Any alteration in the control of the AUTHORIZEE will be subject to control by Anatel for purposes of verification of the obligatory conditions for the issuance and maintenance of the Authorization, in compliance with the regulations.

SOLE PARAGRAPH. The conditions provided under Paragraph Two of Article 10 of the General Concession Plan (Plano Geral de Outorgas - PGO), as well as those established by the General Authorization Plan (Plano Geral de Autorizacoes) of the PMS, and under Article 133 in the General Telecommunications Law are obligatory conditions for issuance and maintenance of the Authorization.

CLAUSE 3.6 - The transfer of the Authorization Term will be subject to approval by Anatel, as provided by Paragraph Two under Article 136 of the General Telecommunications Law.

SOLE PARAGRAPH. For purposes of subsection I under Article 98 of the General Telecommunications Law, the operating time of the Cellular Mobile Services during the term of the REPLACED INSTRUMENT will be considered.

CLAUSE 3.7 - The AUTHORIZEE shall freely establish the rates to be practiced for the rendering of PMS and define the Service Plans with structures, forms, criteria, and values that should be reasonable and non-discriminatory, but may vary as to their technical characteristics, their specific costs, and other facilities offered to users, as defined in PMS regulations, particularly in the ADAPTATION RULE.

CHAPTER IV

 

THE SCOPE COMMITMENTS

CLAUSE 4.1 - The scope commitments established in the REPLACED INSTRUMENT shall be maintained, including obligations regarding service and coverage.

  

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CLAUSE 4.2 - Default in meeting the commitments will subject the AUTHORIZEE to the sanctions set forth in this Term and in the regulations, and may result in the extinction of the authorization.

CHAPTER V

 

QUALITY OF THE SERVICE

CLAUSE 5.1 - The present Authorization is subject to the assumption that the service provided by the AUTHORIZEE is of adequate quality, considering as such the service which fully meets the reliability, efficiency, security, currency, generality, and courtesy conditions.

PARAGRAPH ONE. Reliability is characterized by the continual exploitation of the service with strict adherence to the regulatory requirements provided by Anatel.

PARAGRAPH TWO. Efficiency is characterized by the fulfillment and preservation of the parameters provided in this Authorization Term and by the rendering of assistance and service to users within the time periods set herein.

PARAGRAPH THREE. Security in the exploitation of the service is characterized by rigorous confidentiality of the data relative to the use of the service by users, as well as by the strict preservation of secrecy as to the information transmitted in the scope of its exploitation.

PARAGRAPH FOUR. Currency is characterized by the use of up-to-date equipment, installations, and techniques used in the exploit of the service, including the incorporation of technological advances which will definitely bring benefits to users, in accordance with the provisions set forth herein.

PARAGRAPH FIVE. Generality is characterized by the non-discriminatory provision of the service to each and every user, and the AUTHORIZEE is obliged to render the service to whomever requests it, in compliance with the regulations.

PARAGRAPH SIX. Courtesy is characterized by the respectful and immediate service

 

  

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provided to all users of the authorized service, as well as by the strict observance of the obligations to promptly inform and meet the needs of all those, users and non-users, who ask for information from the Authorizee, as well as any action or any type of request as provided herein.

CLAUSE 5.2 - The AUTHORIZEE shall meet the quality targets established in the General Plan for Quality Goals (Plano Geral de Metas de Qualidade - PGMQ) forthe PMS.

SOLE PARAGRAPH. For purposes of the provisions under Paragraph Five of Article 1of the PGMQ-PMS, commercial activities of the PMS in locations where Cellular Mobile Services already exists are considered to have started at the date of publication of the summary of this Term.

CLAUSE 5.3 - The exploitation of the authorized service can only be suspended inconformity of the PMS regulations, issued by Anatel.

CHAPTER VI

 

NUMBERING PLAN

CLAUSE 6.1 - The AUTHORIZEE agrees to abide by the Numbering Regulations issued by Anatel and shall guarantee to the user the portability of access codes, inconformity with the regulations.

CHAPTER VII

 

BILLING THE USERS

CLAUSE 7.1 - The rates, as well as the form of measurement and the criteria for billing the services rendered shall be established by the AUTHORIZEE based on the PMS regulations, in conformity with the provisions under Clause 3.7 of the present Authorization Term.

 CHAPTER VIII

 

RIGHTS AND OBLIGATIONS OF THE USERS

CLAUSE 8.1 - The rights and obligations if the users are those established in the General Telecommunications Law and in the regulations, with no harm to the

 

  

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rights provided for in Law 8078 of September 11, 1990 in the cases ruled by it, nor to the rights provided for in the PMS contracts.

 

CHAPTER IX

 

RIGHTS AND OBLIGATIONS OF THE AUTHORIZEE

CLAUSE 9.1 - The rights and obligations of the AUTHORIZEE are those provided for in the General Telecommunications Law and in the regulations.

CLAUSE 9.2 - When obtaining services and when acquiring equipment or supplies associated to the object of the present Authorization Term, the Authorizee agrees to consider offers placed by independent suppliers, including the Brazilian ones, and to base their decisions as to the different offers presented on the observance of objective criteria regarding cost, delivery conditions, and technical specifications provided for in the applicable regulations.

SOLE PARAGRAPH. When obtaining the above-mentioned services or supplies, the procedures set forth in the Standard Procedures for Acquisition of Services, Equipment and Supplies by Providers of Telecommunications Services (Regulamento sobre Procedimentos de Contratacao de Servicos e Aquisicao de Equipamentos ou Materiais pelas Prestadoras de Servicos de Telecomunicacoes), approved by Anatel Resolution 155, of August 5, 1999.

CHAPTER X

 

OBLIGATIONS AND PREROGATIVES OF ANATEL

CLAUSE 10.1 - In addition to the other prerogatives intrinsic to its role of regulatory body, and to the other obligations resulting from this Authorization Term, the following shall constitute responsibilities of Anatel:

I.  to follow and to inspect the exploitation of the service with the purpose   of meeting the regulations;

II.  to regulate the exploitation of the authorized service;

III. to apply the penalties established in the regulations of the service,   particularly in this Authorization Term;

  

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IV.  to provide for the good quality of the service, as well as to receive, to   address, and to find solutions for complaints placed by the users, giving   them notice, in no longer than 90 (ninety) consecutive days, of the   actions taken in order to prevent any violation of its rights;

V.  to pronounce the Authorization terminated in the cases set forth in the   General Telecommunications Law;

VI.  to provide for guaranteed interconnection, settling any claims arising   between the Authorizee and the remaining carriers;

VII. to continuously monitor the relationship between the Authorizee and the   remaining carriers in order to settle any occasional conflict;

VIII. to repress any conduct by the Authorizee which is contrary to the   competition regime, in accordance with the provisions of the Brazilian   Administrative Council on Economic Defense (Conselho Administrativo de   Defesa Economica - CADE), the regulations, and particularly the provisions   under Clause 10.2 and Clause 10.3 of this Chapter;

IX.  to perform the inspection of the service in the form established in this   Authorization Term; and

X.  to collect the fees relative to FISTEL, adopting the procedures provided   for in the applicable legislation.

CLAUSE 10.2 - Anatel  may install a Procedure to Investigate Breaches of Obligations (Procedimento para Apuracao de Descumprimento de Obrigacoes - PADO),so as to look into any falsehood or inconsistency of conditions declared by the AUTHORIZEE relative to its non-participation in the control of other companies or to any other regulatory impediment regarding economic concentration whenever there should be any indication of relevant influence on its part or on the part of any affiliated company, controlled company, or controlling company on the legal entity providing PMS, as provided for in the Regulation for Investigation

 

  

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of Control and of Transference of Control in Providers of Telecommunications Services (Regulamento para Apuracao de Controle e de Transferencia de Controleem Empresas Prestadoras de Servicos de Telecomunicacao), approved by Anatel Resolution 101, issued February 04, 1999.

SOLE PARAGRAPH. The presentation of proof, following procedures established under this Clause, of the existence of any situation which characterizes the untruthfulness or the inconsistency of the conditions declared by the Authorizee shall imply the annulment of the present Authorization, as set forth in Article139 of the General Telecommunications Law.

CLAUSE 10.3 - Anatel may additionally set up administrative proceedings aimed to investigate any violation of the economic order, in accordance with the provisions under Law 8884/94.

CHAPTER XI

 

THE INSPECTION REGIME

CLAUSE 11.1 - Anatel shall perform the inspection of the services in order to assure full observance of the responsibilities agreed to in this Authorization Term.

PARAGRAPH ONE. The inspection to be performed by Anatel shall include the inspection and  monitoring of the  activities,  the equipment,  and the installations of the Authorizee, which implies in free access to all data and information concerning the Authorizee and third parties.

PARAGRAPH TWO. The information collected during the activities related to the inspection shall be made public in the Library, with the exception of the information which, as a result of express request by the Authorizee, is regarded as confidential by Anatel.

PARAGRAPH THREE. All information considered confidential in the form described by in Paragraph Two above shall be used exclusively in the procedures correlated with the present Authorization Term, and it will be the responsibility of Anatel

 

  

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and of those appointed by Anatel, to account for any form of full or limited disclosure of the referred to information outside the scope of use specified above.

CLAUSE 11.2 - The AUTHORIZEE is granted the right to follow each and every inspection activity performed by Anatel, through its appointed representative; it cannot however hinder or impede inspection actions, in which case it will be subject to the penalties provided for in the regulations.

CHAPTER XII

 

TELECOMMUNICATIONS NETWORKS AND ACCESS TO VISITING USERS

CLAUSE 12.1 - The Authorizee shall observe the regulatory provisions as to the implementation and operations of the telecommunications networks supporting the rendering of PMS, particularly the provisions in the Telecommunications Services Regulation issued by Resolution 73 of November 25, 1998, in the General Interconnection Regulations (Regulamento Geral de Interconexao), approved by Resolution 40 of July 23, 1998 and in the PMS regulations.

SOLE PARAGRAPH. Changes in technology standards promoted by the AUTHORIZEE shall not represent any burden placed unilaterally and arbitrarily on the user. This is also valid regarding the existing conditions of the service provided to users and visitors.

CLAUSE 12.2 - The remuneration for the use of the network between the Authorizee and the remaining carriers of telecommunications services shall abide by the provisions under Article 152 of the General Telecommunications Law and by the provisions under the PMS regulations, particularly in the ADAPTATION RULE.

SOLE PARAGRAPH. The document provided for under Item 7 of the Adaptation Rule shall henceforward constitute Annex I of the present AUTHORIZATION TERM.

CHAPTER XIII

 

SANCTIONS

  

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CLAUSE 13.1 - The AUTHORIZEE is subject to inspection by Anatel, in conformity with the applicable legal and regulatory provisions, and shall, whenever requested, provide statements in the form established in the PMS regulations, granting free access to its technical resources and accounting records.

CLAUSE 13.2 - Default in fulfilling conditions or meeting the responsibilities agreed to in respect to the Authorization will subject the Authorizee to notification, fines, temporary suspension, or forfeiture, as set forth in the PMS regulation.

CHAPTER XIV

TERMINATION OF THE AUTHORIZATION

CLAUSE 14.1 - The Authorization shall be considered terminated as a result of discharge, forfeiture, lapse, resignation, or annulment, as established in Articles 138 to Article 144 of the General Telecommunications Law and according to the procedures described in the regulation.

SOLE PARAGRAPH.  The declaration of termination  shall not preclude the application of the corresponding penalties, as provided for herein, for violations performed by the AUTHORIZEE.

CHAPTER XV

LEGAL REGIME AND APPLICABLE DOCUMENTS

CLAUSE 15.1 - The  present  Authorization  is  ruled  by  the  General Telecommunications Law and the resulting regulations, without prejudice to the Brazilian legal order, the General Telecommunications Law, or the regulations resulting from it.

CLAUSE 15.2 - The exploitation of the service herein authorized shall observe, as part of this Authorization Term, the regulations established by Anatel particularly the documents specified in the PMS regulations.

CLAUSE 15.4 - The interpretation of rules and provisions in this Authorization

 

  

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Term shall take into consideration, in addition to the documents specified in this Chapter, the general rules of hermeneutics and the rules and principles contained in the General Telecommunications Law.

CHAPTER XVI

 

TRANSITORY PROVISIONS

CLAUSE 16.1 - Until the ratification or the agreement on the VU-M rate, according to the option made by the PMS carrier, both the value for network compensation and the criteria for processing and transferring values among entities rendering Cellular Mobile services and Switched Fixed Telephone Services shall be maintained.

CHAPTER XVII

 

COURT

CLAUSE 17.1 - Any disputes arising from this Authorization Term shall be settled by the Forum of the District Court of the Federal Justice of Brasilia, Federal District of Brazil.

CHAPTER XVIII

 

FINAL PROVISIONS

CLAUSE 18.1 - This Authorization Term shall be effective upon the publication of its summary in the Diario Oficial da Uniao (Brazilian Federal Official Gazette).

CLAUSE 18.2 - Barring the provisions expressly set forth in this AuthorizationTerm, all other provisions in the REPLACED INSTRUMENT, referred to in Paragraph2 of Clause 1.1, are no longer in effect. The parties are aware of the provisions and conditions in this Authorization Term, and sign it in 3 copies, of equal meaning and form, in the presence of the witnesses, who also sign the 3copies, thus rendering it legally and officially effective.

Brasilia, February 03, 2003

PP. ANATEL

 

 

  

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Luiz Guilherme Schymura de Oliveira

President of the Board of Directors

 

 

LUIZ TITO CERASOLI

Member of the Board of Directors

PP. AUTHORIZEE

 

 

SERGIO ASSENCO TAVARES DOS SANTOS

Acting Chairman and President

 

GETULIO NERY CARDOSO

Director of Administration and Human Resources

WITNESSES

 

 

JARBAS JOSE VALENTE

CREA-DF 4346

Nelson Mitsuo Takayanagi

SSP-DF 435023

ATTACHMENT I

 

DECLARATION OF OPTION

In conformity with the provisions under Item 7 of the Adaptation Rule, TELECENTRO OESTE CELULAR PARTICIPACOES S.A., registered with the Brazilian Tax Roll under number (CNPJ/MF) 02.558.132/0001-69, herein represented by its acting Chief Executive Officer MR. SERGIO ASSENCO TAVARES DOS SANTOS, a Brazilian engineer, widowed, General Registry number 131.306 SSP/DF, opts for submission to Item 5 and its subitems in the Remuneration Criteria Rule for Use of personal Mobile Service Provider Networks, approved by Resolution 319 of September 27,2002, requesting the ratification of the TU-M rate, whose maximum value should

 

  

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be the maximum value if the initial VU-M rate in its Area of Coverage.

Brasilia, February 03, 2003

Sergio Assenco Tavares dos Santos

Acting Chief Executive Officer

 

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