Document:

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                                                                    Exhibit 10.5

[LETTERHEAD OF ANATEL]

INSTRUMENT OF AUTHORIZATION NO. 206/2002 SPB-ANATEL

     INSTRUMENT OF AUTHORIZATION FOR THE RENDERING OF SWITCH FIXED TELEPHONE
     SERVICE, OF THE INTERNATIONAL LONG-DISTANCE TYPE, ENTERED INTO BY AND
     BETWEEN AGENCIA NACIONAL DE TELECOMUNICACOES - ANATEL AND TNL PCS S.A.

By this instrument, AGENCIA NACIONAL DE TELECOMUNICACOES (National
Telecommunications Agency), hereinafter referred to as ANATEL, a FEDERAL
GOVERNMENT entity, pursuant to Federal Law No. 9472 dated July 16, 1997, the
General Telecommunications Law (Lei Geral de Telecomunicacoes - LGT), enrolled
in the National Register of Legal Entities of the Finance Ministry (CNPJ/MF)
under No. 02.030.715/0001-12, herein represented by its acting President,
ANTONIO CARLOS VALENTE DA SILVA, Brazilian, married, engineer, bearer of
identity card RG No. 31.547/D-CREA/RJ and enrolled in the Individual Taxpayers'
Register of the Finance Ministry (CPF/MF) under No. 371.560.557-04, jointly with
board member LUIZ TITO CERASOLI, Brazilian, divorced, engineer, bearer of
identity card RG No. 38.592/D-issued by the Regional Council of Engineers,
Architects and Agronomists (CREA/RJ) and enrolled in CPF/MF under No.
297.487.047-34, according to approval from its Board of Governors set forth in
Act No. 22185 of January 21, 2002, published in the Official Gazette of the
Federal Executive (DOU) on January 23, 2002, on the one hand, and TNL PCS S.A.,
enrolled in CNPJ No. 04.164.616/0001-59, herein represented by its Chief
Executive Officer LUIS EDUARDO FALCO PIRES CORREA, Brazilian, married, engineer,
bearer of identity card RG No. 6056736-SSP/SP and CPF No. 052.425.988-75, and by
the Chief Executive Officer of its controlling company TELE NORTE LESTE
PARTICIPACOES S.A.,

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JOSE FERNANDES PAULETTI, Brazilian, married, business manager, bearer of
identity card RG No. 4.031.638-IFP/RJ and CPF/MF No. 057.405.920-20, hereinafter
referred to as AUTHORIZED PARTY, on the other hand, enter into this INSTRUMENT.

                               SECTION I - PURPOSE

CLAUSE 1.1 - The purpose of this Instrument is to issue an Authorization for the
commercial exploration of the Switch Fixed Telephone Service for general public
use (STFC) under a private system, of the INTERNATIONAL LONG-DISTANCE type, of
any scope whatsoever, with mandatory joint and simultaneous provision of
NATIONAL LONG-DISTANCE SERVICE in the service area corresponding to Region IV of
the General Concession Plan - PGO, effective as of January 1, 2002.

SOLE PARAGRAPH - The purpose of this Authorization includes the Switch Fixed
Telephone Service rendered under a private system in bordering and frontier
areas, in accordance with the Anatel regulations, as provided for in the General
Concession Plan.

CLAUSE 1.2 - Switch Fixed Telephone Service is a telecommunications service
that, via transmission of voice and other signals, is designed to establish a
communication between given fixed points, using telephone processes.

CLAUSE 1.3 - AUTHORIZED PARTY has the right to implement, expand and operate
trunks, networks and switch centers required for provision of the service, as
well as to industrially exploit same, as established in the regulations.

CLAUSE 1.4 - AUTHORIZED PARTY shall ensure free access to the emergency services
provided for in the regulations.

                        SECTION II - AUTHORIZATION AMOUNT

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CLAUSE 2.1 - The amount corresponding to this Authorization for providing STFC
in the International Long Distance modality of any scope within the national
territory service area, with the right to render this service as of January 1,
2002, is included in the amount paid for the authorization to explore the
Personal Mobile Service using the "D" radio frequency sub-band, in Region I of
Exhibit I of Bidding Notice No. 001/2000/SPV-ANATEL, which is the subject matter
of Instrument of Authorization No. 001/2001/ SPV-ANATEL.

     SECTION III - USE OF RADIO FREQUENCIES AND SERVICE RENDERING CONDITIONS

CLAUSE 3.1 - AUTHORIZED PARTY may use radio frequencies to install fixed land
radio communications systems that may be needed for the rendering of the STFC,
as established in the regulations.

CLAUSE 3.2 - The right to use radio frequencies for the rendering of STFC shall
be granted upon payment of a fee, the amount of which shall be calculated by
applying the Public Price Collection Regulations for the Right to Use Radio
Frequencies, approved by Resolution No. 68 issued by ANATEL, dated November 20,
1998, subject to article 3, paragraph 1 of these Regulations, which is granted
based on the Radio Frequency Use Regulations.

CLAUSE 3.3 - AUTHORIZED PARTY undertakes to provide the service hereunder in
such a way as to fully comply with the obligations inherent to the private
rendering of such service applying thereto, with due regard for the criteria,
formulas and parameters defined in this Instrument of Authorization.

SOLE PARAGRAPH - Noncompliance with the obligations related to the purpose of
this Instrument shall subject the AUTHORIZED PARTY to the sanctions established
herein, shall allow for the temporary suspension of the Service by Anatel, and,
to the extent applicable, shall determine the cancellation of this
Authorization, as provided for in article 137 of Law 9472/97.

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CLAUSE 3.4 - AUTHORIZED PARTY shall explore the service provided for herein at
its own risk and cost under the full and fair competitive system established in
Law 9472, of 1997, and in the General Concession Plan, and it shall be paid the
prices charged as provided for in this Instrument of Authorization.

SOLE PARAGRAPH - AUTHORIZED PARTY shall not be entitled to any kind of
exclusivity, to any kind of guarantee of financial and economic balance, nor
shall it be entitled to claim any right in relation to the admission of new
carriers for this same service under either a public or private system.

CLAUSE 3.5 - AUTHORIZED PARTY shall establish the prices it will charge for
providing the STFC, and define Service Plans with a framework, form, criteria
and prices that are reasonable and nondiscriminatory.

CLAUSE 3.6 - AUTHORIZED PARTY shall establish a standard Basic Service Plan,
which shall mandatorily be offered to all prospective users within its entire
STFC service area.

CLAUSE 3.7 - AUTHORIZED PARTY may establish Alternative Service Plans with a
structure, criteria and prices that are different from those of the Basic
Service Plan, which shall be optional to users or prospective users, any
discriminatory treatment to be banned.

CLAUSE 3.8 - AUTHORIZED PARTY shall make full disclosure of such Basic and
Alternative Service Plans before selling them, informing Anatel with respect to
their entire content no later than five (5) business days after each Plan goes
on sale.

                      SECTION IV - SERVICE QUALITY CRITERIA

CLAUSE 4.1 - The adequate quality of the service provided by the AUTHORIZED
PARTY is presumed herein, this to mean a service that meets such requirements as
regularity, efficiency, security, currentness, universality and courtesy.

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PARAGRAPH 1 - Regularity shall be characterized as the ongoing rendering of the
service, in strict compliance with the rules issued by Anatel.

PARAGRAPH 2 - Efficiency shall be characterized as the achievement and
maintenance of the parameters established in this Instrument of Authorization
and provision of services to users in the timeframes established herein.

PARAGRAPH 3 - Security in the provision of the service shall be characterized as
the confidentiality of the data related to use of the service by users, as well
as fully assured nondisclosure of information transmitted with respect to this
service, with due regard for the provision in item V of Clause 7.1.

PARAGRAPH 4 - Currentness shall be characterized by the modernity of the
equipment, installations and techniques of the service, with incorporation of
new technological developments that definitely benefit users, with due regard
for the provisions herein.

PARAGRAPH 5 - Universality shall be characterized as nondiscriminatory provision
of the service to any and all users, with the AUTHORIZED PARTY undertaking to
render the service to any party requesting same, at the place indicated by the
requesting party and according to the regulations.

PARAGRAPH 6 - Courtesy shall be characterized as the respectful and prompt
provision of the authorized service to all users, as well as strict compliance
with the obligations to promptly and politely offer information or assistance to
all those who request the AUTHORIZED PARTY for information, steps or make any
other request, be they users or not, as provided for herein.

CLAUSE 4.2 - AUTHORIZED PARTY shall observe the parameters and indicators of the
General Quality Goals Plan.

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CLAUSE 4.3 - In the event the provision of the service is interrupted, the
AUTHORIZED PARTY may in no way claim noncompliance with any obligation by Anatel
or the federal government.

CLAUSE 4.4 - The rendering of the authorized service may only be interrupted as
established in the Switch Fixed Telephone Service regulations issued by Anatel.

                             SECTION V - NUMBER PLAN

CLAUSE 5.1 - With due regard for the regulations, the AUTHORIZED PARTY
undertakes to abide by the Switch Fixed Telephone Service Regulations on
Numbering issued by Anatel, and shall assure to the service subscriber the
portability of access codes within the timeframe defined in these Regulations.

PARAGRAPH 1 - The cost of the investments needed to provide access code
portability shall be divided between the AUTHORIZED PARTY and other private or
public telecommunications service carriers.

PARAGRAPH 2 - The cost related to management of the consignment process and
access code occupation of the Regulations on Numbering shall be imputed to the
AUTHORIZED PARTY, as established in the Regulations on Management of Number
Resources.

CLAUSE 5.2 - AUTHORIZED PARTY shall be entitled to the Carrier Selection Code
without exclusivity, to be defined by ANATEL.

                            SECTION VI - USER BILLING

CLAUSE 6.1 - The billing documents issued by the AUTHORIZED PARTY shall be
presented in a clear and well-explained form and shall identify the type and
amount of each service provided to the subscriber.

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SOLE PARAGRAPH - AUTHORIZED PARTY shall state in the billing document, provided
it does so clearly and explicitly, the amounts owed for the rendering of value
added services, as well as other amenities or utilities related to the
authorized service.

CLAUSE 6.2. - AUTHORIZED PARTY shall collect from the other telecommunications
service providers, with respect to the use of networks, the maximum amounts
established by Anatel, with due regard for the regulations.

CLAUSE 6.3. - AUTHORIZED PARTY shall offer a discount to the subscriber affected
by any interruption in the rendering of the authorized service, provided it has
not been caused thereby, which discount shall be proportional to the period of
the interruption, pursuant to the regulations.

         SECTION VII - RIGHTS AND GUARANTEES OF USERS AND OTHER CARRIERS

CLAUSE 7.1 - With due regard for the rules and conditions found herein, users of
the service hereunder shall have the following rights:

I - access to the service and enjoyment of the same within the quality,
regularity and efficiency standards established herein and in applicable
regulations;

II - possibility of requesting suspension or interruption of the service;

III - nondiscriminatory treatment as regards access to and enjoyment of the
service;

IV - secure proper information regarding the conditions governing the provision
of services and prices thereof;

V - inviolability and secrecy of all communications, with due regard for any
cases and conditions established in the Constitution and in law on the breaking
of telecommunications secrecy;

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VI - achievement, free of charge and upon request to the user service center
maintained by AUTHORIZED PARTY, of the non-disclosure of their access code;

VII - not having subscriber service suspended without due authorization, except
in the event of any existing debt directly resulting from use of the service or
from noncompliance with the obligations set forth in article 4 of Law 9472, of
1997;

VIII - prior notice regarding any and all changes in the service rendering
conditions that affect them directly or indirectly;

IX - privacy in relation to the billing documents and use of their personal data
assured by the AUTHORIZED PARTY;

X - AUTHORIZED PARTY's efficient and prompt reply to complaints;

XI - forwarding of complaints and legal claims against the AUTHORIZED PARTY to
Anatel and consumer protection organizations;

XII - reparation of damages caused as a result of a breach of their rights;

XIII - assured compliance with all the terms of the subscription agreement they
may have entered for the service;

XIV - freely choose the national or international long-distance telephone
service carrier;

XV - assured observance of their right to portability of access codes, subject
to the regulations;

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XVI - not be under any obligation to use services or acquire goods or equipment
that are not in their interest, or to submit to any condition in order to be
provided the services hereunder, as established in the regulations;

XVII - substitution of their access code as established in the regulations; and

XVIII - interception, free of charge, and for a period of at least thirty (30)
days, of the calls forwarded to the former access code and information of the
new access code at the time the provider is changed.

PARAGRAPH 1 - AUTHORIZED PARTY shall diligently regard the obligation of
telephone service secrecy and confidentiality of data and information, and use
all means and technologies that assure users of this right.

PARAGRAPH 2 - AUTHORIZED PARTY shall make available all technological resources
required to assure suspension of the telecommunications secrecy ordered by a
court authority, as established in the regulations.

CLAUSE 7.2 - All other telecommunications service carriers shall be assured the
following rights in addition to those listed in the preceding Clause:

I - interconnection to the AUTHORIZED PARTY's network on nondiscriminatory
economic and operating conditions and technically adequate terms, at equal and
fair prices, which are strictly consistent with the provision of the service,
with due regard for the Anatel regulations;

II - be provided the service they request to the AUTHORIZED PARTY without any
type of discrimination, at market price or at a price negotiated by the parties,
and with the applicable discounts in view of cost saving resulting from large
scale consumption, with due regard for the regulations; and

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III - obtaining of all information that may be required for their provision of
services, including billing information, with due regard for the AUTHORIZED
PARTY's right to maintain corporate data confidential, as well as for
third-party rights.

PARAGRAPH 1 - Conflicts between the AUTHORIZED PARTY and other carriers shall be
resolved administratively by Anatel, as established in the regulations.

PARAGRAPH 2- Anatel shall permanently monitor the relationships between the
carriers that use the service authorized hereunder and the AUTHORIZED PARTY, and
shall restrain any conduct that may result in injury to any of the parties or
violation of economic policy and free competition, and shall, in these cases,
report such conduct to the Administrative Economic Defense Council - CADE, after
exercising its authority, as provided for in article 19, item XIX, of Law 9472,
of 1997.

CLAUSE 7.3. - According to the regulations, any user shall be assured the right
to render and enjoy value-added services, which shall occur on technically
adequate terms, at equal and fair prices, and AUTHORIZED PARTY shall be
forbidden to restrain or limit the enjoyment of the service.

SOLE PARAGRAPH - Value-added service shall mean all activities that add to the
service hereunder, without however being confused with them, any new utilities
related to access, storage, forwarding, movement or recovery of information.

      SECTION VIII - AUTHORIZED PARTY'S RIGHTS, GUARANTEES, OBLIGATIONS AND
                                  RESTRICTIONS

CLAUSE 8.1 - In addition to the other obligations arising herefrom and
pertaining to the rendering of the service, AUTHORIZED PARTY shall be
responsible for the following:

I - to render the service in strict compliance with the provisions herein, and
fully abide by the Anatel regulations;

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II - to install all equipment and installations needed for rendering the service
hereunder in accordance with the specifications set out in this Instrument;

III - to furnish all data and elements related to the service it is requested to
Anatel, in the manner and at the interval established in the regulations;

IV - to submit to monitoring by Anatel, and give its agents access to service
facilities and to its accounting records;

V - to keep separate accounting records for each service;

VI - to have adequate user information and customer services;

VII - to forward a copy of all covenants and agreements related to the provision
of services signed with foreign telecommunications service carriers;

VIII - to disclose, either directly or through third parties, the access code of
its subscribers and other subscribers of STFC carriers, under a private and
public system, in the Authorization area, excluding those that expressly request
omission of their personal data;

IX - to provide, at reasonable dates and prices and on a nondiscriminatory
basis, the list of its subscribers to whom it wishes to disclose it;

X - to strictly regard the obligation of telecommunications secrecy and
confidentiality, in strict compliance with legal and regulatory provisions;

XI - to respect the privacy of subscribers in relation to billing documents and
all their personal data;

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XII - to submit first to Anatel any and all changes it proposes to make to its
bylaws or articles of incorporation, including any spin-offs, mergers,
transformations, amalgamations, as well as control transfers or changes in
corporate capital;

XIII - to assure interconnection to its network to any other telecommunications
service carrier, with due regard for the regulations;

XIV - to observe all the rights of other telecommunications service carriers,
and refrain from performing any discriminatory conduct or conduct that obstructs
the business of such carriers;

XV - to use, where required in the regulations, equipment certified or accepted
by Anatel;

XVI - to observe the technical standards and rules in force in Brazil, and
refrain from any discriminatory conduct with regard to goods and equipment made
in Brazil;

XVII - to place all means, systems and availabilities at the service of civil
defense authorities and agents in the event of a public disaster, in order to
give them support and to assist the population affected by such disaster;

XVIII - to give priority service to the President of Brazil, his registered
representatives, support personnel and committee members, as well as to foreign
heads of state, when on an official visit or passing through the Brazilian
territory, and provide all necessary means for the adequate communications of
such authorities, with due regard for the Anatel regulations;

XIX - to pay all monitoring and operating charges related to its facilities, as
provided for in the regulations;

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XX - to annually publish its balance sheet and financial statements at the end
of each fiscal year, independently of the legal system under which it operates,
with due regard for the provisions in applicable law and in the Anatel
regulations;

XXI - to comply with the applicable rules in Brazil governing use of foreign
labor, including those holding higher positions;

XXII - to comply with treaties signed between Brazil and other countries and
international organizations, as established in the Anatel regulations;

XXIII - to send Anatel a list of all shareholders, separately or as a group,
owning five percent (5%) or more of its stock with voting rights, at the time
intervals defined by Anatel; and

XXIV - to provide to Anatel any technical, operational, economic, financial,
corporate and accounting or other information it may request; and

XXV - to pay a contribution to the Telecommunications Services Universalization
Fund, pursuant to applicable law.

PARAGRAPH 1. - Noncompliance with the provisions in this Clause shall subject
AUTHORIZED PARTY to the penalties established in this Instrument of
Authorization.

PARAGRAPH 2. - AUTHORIZED PARTY, its affiliates, subsidiaries or controllers
shall not condition the offer of the service to the acceptance of any other
service, or offer any advantages to the user due to said user using additional
services to that established hereunder, even if provided by third parties.

CLAUSE 8.2 - Irrespectively of the other provisions set out herein and of the
guarantees established in law, the AUTHORIZED PARTY shall have the following
rights:

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I - to provide the service in accordance with its corporate strategy, and freely
establish its investments, with due regard for the Anatel regulations and the
provisions herein;

II - to waive its right to provide the authorized service, as established in
article 142 of Law 9472, of 1997, provided it expressly notifies Anatel and
users of its decision eighteen (18) months in advance;

III - to appoint a representative to follow up on the monitoring activities of
Anatel;

IV - to interrupt or disregard a request for service by a subscriber whose name
is on the delinquent subscriber list, as established in Clause 4.4 hereof;

V - to be able to interconnect with other STFC carriers, on nondiscriminatory
economic and operational conditions and on technically adequate terms, at equal
and fair prices, which are strictly necessary to render the service, with due
regard for the Anatel regulations;

VI - to be provided the service it requests from other carriers without any type
of discrimination, at market price or at a price negotiated by the parties, and
with the applicable discounts in view of cost savings resulting from large scale
consumption, with due regard for the regulations;

VII - to obtain all data needed to provide the service, as provided for in item
VI, including any on billing, with due regard for the other carriers' right to
maintain corporate data confidential, as well as for third-party rights;

VIII - availability of number resources according to the regulations;

IX - to request that Anatel maintain confidential any information gathered
during its monitoring activities; and

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X - outsource to third parties the undertaking of activities inherent, accessory
or supplementary to the service, as well as the implementation of related
projects.

CLAUSE 8.3 - Throughout the validity of this Instrument, AUTHORIZED PARTY shall
be solely liable as regards third parties for any acts carried out by its
personnel, assigns or contractors in the rendering of STFC, as well as for use
of equipment, facilities or networks, and shall hold federal government and
Anatel harmless from any claims and/or indemnity demands.

CLAUSE 8.4 - AUTHORIZED PARTY may not create any obstacles to works of public
interest, irrespectively of their nature, whenever it is necessary for any
public administration body or entity to remove facilities or telephone networks
to make such works feasible directly or indirectly.

CLAUSE 8.5 - AUTHORIZED PARTY shall directly enter into agreements regarding the
conditions for placing posts and crossbars to hang aerial cables and lines, as
well as underground ducts and pipelines to pass cables under public streets and
places, with the local municipal authorities governing the service areas, and
also with other public service utility companies.

PARAGRAPH 1 - AUTHORIZED PARTY shall make due request to the titleholders of
public and private properties over and under which it has to place cable ducts
and pipelines or install supports to hang such cables, and secure their consent
or easement therefor.

PARAGRAPH 2 - AUTHORIZED PARTY shall negotiate the conditions to overcome any
interferences in the network that may be necessary to render the service,
including cutting and pruning of trees, with the respective municipal
authorities.

CLAUSE 8.6 - In accordance with the provision in article 73 of Law 9472, of
1997, the AUTHORIZED PARTY may use posts, ducts, pipelines and easements
belonging to or controlled by other carriers of telecommunications or other
services of public interest.

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PARAGRAPH 1 - Use of the means mentioned in the main section of this Clause
shall be made on a nondiscriminatory basis and at reasonable and fair prices.

PARAGRAPH 2 - AUTHORIZED PARTY shall make available to the other
telecommunications service carriers, classified by Anatel as being of collective
interest, all means referred to in the main section of this Clause which it owns
or controls, on the same conditions established in the preceding paragraph.

PARAGRAPH 3 - Whenever the AUTHORIZED PARTY fails to come to an agreement with
the other carriers on the use of the means referred to in this Clause, it shall
be incumbent on Anatel to, alone or together with the other regulatory agencies
involved, establish the conditions for such use.

CLAUSE 8.7 - AUTHORIZED PARTY shall maintain a user information and customer
service department that is able to receive and process requests, complaints and
claims made by users personally or via any remote communication medium fully
operative twenty-four (24) hours a day, throughout the validity of this
Instrument.

PARAGRAPH 1 - AUTHORIZED PARTY shall disclose to all users the addresses and
access codes to its user information and customer service department, and such
information shall necessarily be included in the Standard Agreement signed with
them in connection with the provision of the service.

PARAGRAPH 2 - AUTHORIZED PARTY shall make available and disclose easy and free
access codes where users can send requests via the telephone.

PARAGRAPH 3 - All requests, claims or complaints sent by users via any medium
shall be given a service order number, which shall be given to users so that
they can follow up thereon.

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PARAGRAPH 4 - The user shall be informed by the AUTHORIZED PARTY within the time
frames established in the General Quality Goals Plan regarding steps to be taken
in reply to their request, claim or complaint.

PARAGRAPH 5 - Should Anatel find that there is any difficulty in users'
accessing the information and customer service department, it may order the
AUTHORIZED PARTY to expand the available means of access, under the penalty of
its defaulting on the obligation established in this Clause.

CLAUSE 8.8 - On hiring the services and acquiring equipment and materials
related to the purpose of this Instrument, the AUTHORIZED PARTY undertakes to
consider offers of independent suppliers, including of domestic suppliers, and
base its decision regarding the different offers on compliance with objective
price, delivery terms and technical specification criteria established in
pertinent regulations.

PARAGRAPH 1 - Where offers are equivalent, the AUTHORIZED PARTY undertakes to
give priority to companies established in Brazil, equipment and materials made
in Brazil, and among these, those using Brazilian technology as a tie-breaking
criterion, with the equivalence mentioned herein to be established when
cumulatively:

I - the domestic price is lower than or equal to the price of the imported good
after customs clearance, plus all due taxes;

II - delivery timeframes are in line with service requirements; and

III - the technical specifications established in pertinent regulations are met
and they are certified or accepted by Anatel, as applicable.

PARAGRAPH 2 - Services mean those related to telecommunications systems research
and development, planning, design, implementation and physical installation,
operation, maintenance, supervision and evaluation tests.

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PARAGRAPH 3 - Operation of the provisions of this clause shall be regulated by
Anatel, including the applicable sanctions.

CLAUSE 8.9 - With due regard for the provisions in Clause 8.10, AUTHORIZED
PARTY, its subsidiaries, controllers or any of its shareholders holding,
directly or indirectly, five percent (5%) or more of the voting shares of the
AUTHORIZED PARTY, may only own nonvoting shares in a STFC concessionaire, capped
at twenty percent (20%) of the capital stock. {clause applicable only to
sub-band "C"}

CLAUSE 8.10 - Transfer of the shareholding control or of the Authorization shall
comply with the provisions in article 136, paragraph 2 of Law 9472, of 1997.

SOLE PARAGRAPH - After the conditions have been met and the timeframe expired as
established in Clause 8.10, the transfer of control or Authorization that
results in the direct or indirect control by the same shareholder or a group of
shareholders, of STFC carriers acting in distinct PGO areas, may not be carried
out while Anatel considers that such impediment is necessary for compliance with
the Plan, or while the transfer entails losses to competition or places at risk
the execution of this Instrument of Authorization, pursuant to the provisions in
article 7 of Law 9472 of 1997.

                                   SECTION IX

                     OBLIGATIONS AND PREROGATIVES OF ANATEL

CLAUSE 9.1 - In addition to the other prerogatives inherent to its duty as
regulatory agency, and the other obligations arising out of this Instrument, it
shall be incumbent on Anatel to:

I - follow up on and inspect provision of the service to ensure compliance with
regulations;

II - regulate provision of the authorized service;

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III - apply the penalties set out in the service regulations and specifically in
this Instrument;

IV - ensure the good quality of the service, receive, verify and resolve claims
and complaints from users, notifying them within ninety (90) days of the action
taken to curb any violations of their rights;

V - declare the Authorization extinguished in the events contemplated by Law
9472, of 1997;

VI - put forth its best efforts to guarantee the interconnection, settling any
disputes arising between the AUTHORIZED PARTY and the other carriers;

VII - continuously follow up on the relationship between the AUTHORIZED PARTY
and the other carriers, settling any conflicts that may arise;

VIII - curb any conduct on the part of the AUTHORIZED PARTY that runs counter to
the competitive system, with due regard for the authority of CADE, regulations
and particularly the provisions of Clauses 9.2. and 9.3. of this Section;

IX - inspect the service pursuant to this Instrument; and

X - collect the fees relating to the Telecommunications Monitoring Fund -
FISTEL, adopting the steps set forth in the law.

CLAUSE 9.2 - Anatel may initiate administrative proceedings to verify the
untruthfulness and inconsistency of the conditions declared by the AUTHORIZED
PARTY relating to nonparticipation in the control of other companies or to other
prohibitions regarding economic concentration, whenever there are indications of
material influence of the AUTHORIZED PARTY, its affiliates, subsidiaries or
controllers, over STFC carrier(s), such as:

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I - the existence of any kind of material credit or debt transactions among the
AUTHORIZED PARTY, its affiliates, subsidiaries or controllers, and STFC
carrier(s);

II - the rendering of guarantees in rem, personal or of any other kind by the
AUTHORIZED PARTY, its affiliates, subsidiaries or controllers to STFC
carrier(s), or vice versa;

III - the transfer of assets between the AUTHORIZED PARTY, its affiliates,
subsidiaries or controllers and STFC carrier(s), on conditions, terms or amounts
different from those adopted in the market;

IV - the existence of strategic know-how transfer between the AUTHORIZED PARTY,
its affiliates, subsidiaries or controllers and STFC carrier(s);

V - the rendering of telecommunications or related services between the
AUTHORIZED PARTY, its affiliates, subsidiaries or controllers and STFC
carrier(s) on favored or privileged conditions vis-a-vis other companies
operating in the market;

VI - the existence of interconnection agreements between the AUTHORIZED PARTY,
its affiliates, subsidiaries or controllers and STFC carrier(s) that stipulate
favored or privileged conditions vis-a-vis other companies operating in the
market;

VII - the existence of infrastructure sharing agreements between the AUTHORIZED
PARTY, its affiliates, subsidiaries or controllers and STFC carrier(s) on
favored or privileged conditions vis-a-vis other companies operating in the
market;

VIII - the shared use of significant material, technological or human resources
by the AUTHORIZED PARTY, its affiliates, subsidiaries or controllers and STFC
carrier(s);

                                                                              20

<PAGE>

IX - the existence of any juristic act between the AUTHORIZED PARTY, its
affiliates, subsidiaries or controllers, and any company holding control over a
STFC carrier the subject matter of which is the transfer of shares between them
or the granting of right of first refusal with regard to transfer of shares
between them;

X - the joint contracting of goods or services by competitors; and

XI - other conduct defined in regulations as characteristically indicating
economic concentration or exercising of control power among STFC carriers.

SOLE PARAGRAPH - Evidence of the existence of any situation that typifies
untruthfulness or inconsistency of the conditions declared by the AUTHORIZED
PARTY after the procedure set forth in this Clause may give rise to revocation
of this Authorization, pursuant to article 139 of Law 9472, of 1997.

CLAUSE 9.3 - Anatel may furthermore initiate administrative proceedings to
investigate the anticompetitive practice set out in Law 8884, of 1994, and, in
particular, the adoption of collusive practices or practices that restrain free
competition, upon verification of the following indications, among others:

I - the prolonged stability of relative market shares of competitors;

II - the uniform commercial conduct among competitors;

III - the joint contracting of goods or services by competitors;

IV - the prolonged stability of the price levels or structures for the services,
or parallelism in price variations;

V - the adoption of uniform service offering conditions or terms among
competitors;

                                                                              21

<PAGE>

VI - the exchange of material information between competitors, relating, among
other aspects, to technological, financial or commercial strategies;

VII - the stable division of market operations among competitors;

VIII - the complementarity of plans or projects for network expansion or
implementation;

IX - the discrimination in prices or service conditions that benefit certain
companies to the detriment of other market players;

X - purchases, sales, leases, free leases or any other form of transfer, either
on a temporary or definitive basis, of assets of significant value or of
strategic importance among competing companies;

XI - the shared use of significant material, technological or human resources,
by competing companies;

XII - the existence of interconnection agreements that stipulate favored or
privileged conditions vis-a-vis certain companies in relation to those offered
to other market players;

XIII - the existence of infrastructure sharing agreements on favored or
privileged conditions for certain companies vis-a-vis those offered to other
market players;

XIV - distortion, manipulation, omission or delay on the part of competitors
when supplying the information required by Anatel; and

XV - other practices defined as indicia of collusion under the regulations.

SOLE PARAGRAPH - Evidence that the AUTHORIZED PARTY is engaging in collusive or
anticompetitive practices may entail, in addition to imposition of the penalties
set forth in this Instrument and those imposed by CADE, the cancellation of this
AUTHORIZATION.

                                                                              22

<PAGE>

                           SECTION X - THE AUTHORIZEE

CLAUSE 10.1 - AUTHORIZED PARTY is a company organized under the laws of Brazil,
with its principal place of business and management in Brazil, subject to the
provisions of Law 9472, of 1997 and Decree 2617, dated June 5, 1998.

                         SECTION XI - MONITORING SYSTEM

CLAUSE 11.1 - Anatel shall monitor the services so as to ensure performance of
the commitments hereunder.

PARAGRAPH 1 - Anatel's monitoring shall comprise the inspection of and follow-up
on the AUTHORIZED PARTY's activities, equipment and facilities, implying full
access to all data and information related to the AUTHORIZED PARTY or third
parties.

PARAGRAPH 2 - Information gathered during the monitoring activities shall be
published in the Library, except for any information that is considered
confidential by Anatel at the AUTHORIZED PARTY's request.

PARAGRAPH 3 - Any information that is deemed confidential pursuant to the
preceding paragraph shall only be used in the proceedings related to this
Instrument, whereupon Anatel and its designees shall be liable for any full or
restricted disclosure of such information unrelated to the use set forth herein.

CLAUSE 11.2 - AUTHORIZED PARTY, by its representative duly appointed, may be
present at any and all monitoring activities conducted by Anatel, but it shall
not hinder or impair performance of such monitoring activities, on pain of being
imposed the penalties contemplated by this Instrument.

                                                                              23

<PAGE>

                          SECTION XII - INTERCONNECTION

CLAUSE 12.1 - AUTHORIZED PARTY shall permit, facilitate, make available and
effect the interconnection between its network and the networks of other
carriers of telecommunications services, under a public or private system, upon
request of the latter, subject to the regulations.

SOLE PARAGRAPH - The availability of interconnection points shall be negotiated
directly between the AUTHORIZED PARTY and the respective carriers, subject to
the regulations.

CLAUSE 12.2 - AUTHORIZED PARTY shall be paid a fee for the use of its network in
accordance with the Regulations on Fees payable for the use of networks of STFC
carriers.

CLAUSE 12.3 - AUTHORIZED PARTY shall have the same rights and shall observe the
same interconnection conditions as those applying to other STFC carriers.

SOLE PARAGRAPH - AUTHORIZED PARTY shall make available for interconnection
purposes the network elements with the highest technically possible level of
unbundling, pursuant to the regulations.

                            SECTION XIII - PENALTIES

CLAUSE 13.1 - By signing this Instrument, the AUTHORIZED PARTY agrees with the
following penalties, to be imposed by means of a substantiated decision of
Anatel, it being understood that the AUTHORIZED PARTY shall be ensured the right
to defense pursuant to its Internal Regulations and without prejudice to other
penalties set out in the regulations:

I - for any act or omission that violates the provisions of this Instrument and
injures competition in the telecommunications sector: a fine of up to fifty
million reais (R$ 50,000,000.00);

                                                                              24

<PAGE>

II - for violation of the provisions of this Instrument resulting in
non-observance of the quality standards and targets envisaged for the service: a
fine of up to forty million reais (R$ 40,000,000.00);

III - for any other act or omission not stated in the preceding items and
resulting in violation of the user's rights defined herein or entailing losses
thereto: a fine of up to thirty million reais (R$ 30,000,000.00);

IV - for any act or omission in violation of clause 8.8 hereof, which deals with
retaining of services and acquisition of equipment and materials manufactured in
Brazil: a fine of up to thirty million reais (R$ 30,000,000.00);

V - for any act or omission that hinders or impairs Anatel's monitoring
activities set forth in this Instrument: a fine of up to twenty million reais
(R$ 20,000,000.00); and

VI - for nonperformance of any obligation expressly set out in this Instrument,
except for those indicated in the preceding items: a fine of up to ten million
reais (R$ 10,000,000.00).

PARAGRAPH 1 - The seriousness of the violation set forth in items I and III
above shall be defined exclusively in accordance with the general criteria
prescribed by clause 13.2, and such violation shall be characterized by the
AUTHORIZED PARTY's conduct that may directly or indirectly injure competition in
the sector, especially:

A) the creation of obstacles or hindrances to the option by another authorized
service carrier or national and international long distance service carrier;

B) the refusal to offer interconnection services to a telecommunications service
carrier;

C) the creation of obstacles or hindrances to the activity of value-added
service carriers;

                                                                              25

<PAGE>

D) conditioning of the rendering of the authorized service or offering of
advantages due to the acquisition by the user of a service outside the scope of
this Instrument;

E) the execution of any telecommunications service that is not subject to
Anatel's approval;

F) the failure to maintain the quality levels related to interconnection; and

G) the delay in providing information that is essential to the activity of other
carriers, particularly with regard to data record.

PARAGRAPH 2 - The provisions set out in item II above shall be considered
violated when the quality parameters defined in the General Quality Goals Plan
are not observed and the seriousness of such violation shall be defined
vis-a-vis the number of users affected thereby and the losses caused, and the
following shall be characterized due to the violation, by commission or
omission, directly or indirectly, of an obligation established herein that
entails violation of the users' rights, especially:

A) interruption in the provision of services for a term exceeding that
established in the General Quality Goals Plan;

B) non-allocation in the operation and maintenance of the service of the human
and material resources necessary to maintain the minimum quality levels;

C) negligence in modernizing the network, thus affecting the service quality;

D) non-observance of the duty to provide information to user;

E) violation of the telecommunications confidentiality, outside the events set
forth by law, even if committed by third parties at the facilities under the
responsibility of the AUTHORIZED PARTY;

                                                                              26

<PAGE>

F) failure to comply with the duty to provide free telephone directories;

G) failure to maintain the user information and service department in the manner
prescribed by this Instrument; and

H) price collection in violation of the rules set out in this Instrument and the
regulations.

PARAGRAPH 3 - The violation established in item IV shall be deemed to have
occurred in the event of nonperformance of the obligation set out in Clause 8.8
and its seriousness shall be defined as provided for in the regulations.

PARAGRAPH 4 - The seriousness of the violation established in item V above shall
be defined according to the relevance of the monitoring activity hindered and
shall be established according to the violation perpetrated, by commission or
omission, directly or indirectly by the AUTHORIZED PARTY or its designees, which
may prevent or impair the monitoring activity performed by Anatel, its designees
and agents, especially:

A) the AUTHORIZED PARTY's refusal to meet a request for information posed by
Anatel in connection with the authorized service or the properties related
thereto;

B) the creation of obstacles to the activities performed by Anatel's monitoring
agents;

C) the omission in complying with the advertising obligation set forth herein or
in the regulations; and

D) failure to provide or untimely provision of any information, data, report or
document that pursuant to the regulations or this Instrument, should be remitted
to Anatel.

PARAGRAPH 5 - The sanction contemplated by item VI shall be established on
identifying the violation of any obligation set out herein that is not included
in the previous paragraphs.

                                                                              27

<PAGE>

PARAGRAPH 6 - The sanction established in item I shall be applied by Anatel
irrespectively of any procedures that may be adopted by CADE.

PARAGRAPH 7 - Nonpayment of any fine stipulated in this clause within the time
frame established by Anatel shall typify a severe fault and entail collection of
a default fine of zero point three three percent (0.33%) per day, capped at ten
percent (10%), added by the SELIC reference rate for federal instruments, to be
applied on the value of the debt, taking into account all days of the payment
delay.

CLAUSE 13.2 - To apply the fines set forth in this Section the rules contained
in Title VI of Book III of Law 9472 of 1997, and in the regulations, shall be
observed.

PARAGRAPH 1 - Anatel shall observe the circumstances below when defining the
seriousness of the sanctions and establishing the fines:

I - the proportionality between the intensity of the penalty and the seriousness
of the fault, including as to the number of users affected;

II - the damages caused by the violation to the service and users;

III - the advantage obtained by the AUTHORIZED PARTY as a result of the
violation;

IV - the AUTHORIZED PARTY's market share within its geographic service area;

V - the economic and financial situation of the AUTHORIZED PARTY, especially its
capability of generating income, and its assets;

VI - the background of the AUTHORIZED PARTY;

VII - specific recidivism, that is, a repeated fault of a like nature after
receipt of previous notice; and

                                                                              28

<PAGE>

VIII - the general circumstances that aggravate or mitigate the violation.

PARAGRAPH 2 - Notwithstanding the specific graduation criteria laid out in each
item of the previous clause and others provided for in the regulations, the
penalties shall be gradually applied as follows:

I - the violation shall be deemed minor in the event of an involuntary or
excusable conduct on the part of the AUTHORIZED PARTY, from which the latter
does not benefit;

II - the violation shall be deemed of medium seriousness in the event of a
conduct that is inexcusable but does not result in any benefits or gains for the
AUTHORIZED PARTY, nor does it affect a significant number of users; and

III - the violation shall be deemed serious when Anatel verifies the existence
of one of the following factors:

A) AUTHORIZED PARTY acted in bad faith;

B) the violation resulted from a direct or indirect benefit for the AUTHORIZED
PARTY;

C) AUTHORIZED PARTY violates the same provision; and

D) the number of users affected is significant.

PARAGRAPH 3 - For minor violations, when committed for the first time, Anatel
may, at its sole discretion, impose a warning penalty on the AUTHORIZED PARTY,
which shall be formally notified of the sanction, without prejudice to
publication of the decision in the official press.

                                                                              29

<PAGE>

PARAGRAPH 4 - For imposition of the penalties established in this Section, the
Sanctioning Procedure provided for in Anatel's Internal Regulations shall be
observed.

PARAGRAPH 5 - Anatel may determine, for the violations set out in clause 13.1,
that the AUTHORIZED PARTY deduct from the amount to be paid by way of fine the
sums to be refunded to the affected users, and upon application of the penalty
Anatel shall set the refund criteria, the payment deadline, and the maximum
deduction amount.

PARAGRAPH 6 - The event established in the previous paragraph may only be
adopted after verification that the interest or necessity of the users will not
suppress the AUTHORIZED PARTY's responsibility for the other civil indemnities
payable.

CLAUSE 13.3 - The fines provided for herein shall be levied independently of the
events entailing the declaration of expiry set out herein having been
established.

CLAUSE 13.4 - The value of the fines stipulated in this Section shall be
adjusted on a yearly basis by applying the IGP-DI, and the first adjustment
shall mature one year after signing of this Instrument.

                  CHAPTER XIV - EXPIRATION OF THE AUTHORIZATION

CLAUSE 14.1 - The Authorization shall be deemed expired in the event of
withdrawal, forfeiture, lapse, waiver or annulment, as per articles 138 through
144 of Law 9472 of 1997 and according to the procedures set out in the
regulations.

CLAUSE 14.2 - Expiration of the Authorization for the national or international
long-distance type of service shall result in the automatic expiration of the
other Authorization.

SOLE PARAGRAPH - The statement of expiration shall not eliminate the imposition
of the appropriate penalties hereunder resulting from the violations committed
by the AUTHORIZED PARTY.

                                                                              30

<PAGE>

               CHAPTER XV - LEGAL SYSTEM AND APPLICABLE DOCUMENTS

CLAUSE 15.1 - Without prejudice to other rules set forth in the Brazilian legal
system, this Authorization is governed by Law 9472 of 1997 and by the
regulations resulting therefrom, especially those related to the authority of
the Executive Branch, as provided for in article 18 of such Law, whereupon the
latter provisions shall prevail in the event of controversies.

CLAUSE 15.2 - When providing the service authorized herein the Anatel
regulations shall be observed, as an integral part of this INSTRUMENT,
especially the documents listed below:

I - General Concessions Plan;

II - General Quality Goals Plan;

III - General Telecommunications Services Regulations;

IV - Regulations on Switch Fixed Telephone Services;

V - General Interconnection Regulations;

VI - Regulations on Numbering of the Switch Fixed Telephone Services;

VII - Regulations on Management of Numbering;

VIII - Regulations on Fees for Use of Networks of STFC Carriers;

IX - Regulations on Disclosure of Subscribers' Lists and on Issuance and
Distribution of Mandatory and Free of Charge Telephone Directories; and

                                                                              31

<PAGE>

X - Regulations on Bidding for Concession, Permission and Authorization
regarding Telecommunications Service, and Authorization to Use Radio
Frequencies.

CLAUSE 15.3 - Bidding Notice No. 001/2000/SPV-ANATEL, and its exhibits,
questions and answers, is also an integral part of this Instrument as if it were
transcribed therein.

CLAUSE 15.4 - When interpreting the rules and provisions contained in this
Instrument, not only the documents mentioned in this Chapter shall be taken into
account, but also the general hermeneutics rules and the rules and principles
set out in Law 9472 of 1997.

                           CHAPTER XVI - JURISDICTION

CLAUSE 16.1 - The matters arising out of this Instrument shall be settled by the
competent court of the Judiciary Section of the Federal Justice of Brasilia,
Federal District.

                         CHAPTER XVII - FINAL PROVISION

CLAUSE 17.1 - This Instrument shall take effect as of publication of its extract
in the Official Gazette of the Federal Executive.

IN WITNESS WHEREOF, the parties sign this Instrument in two (2) counterparts of
identical form and content, in the presence of the undersigned witnesses, so
that it can produce its legal and juridical effects.

Brasilia, February _____, 2002.

BY ANATEL:

-------------------------------------
ANTONIO CARLOS VALENTE DA SILVA

                                                                              32

<PAGE>

Deputy President

---------------------------------------
LUIZ TITO CERASOLI
Board Member

BY THE AUTHORIZED PARTY:

---------------------------------------
LUIS EDUARDO FALCO PIRES CORREA
Chief Executive Officer of TNL PCS S.A.

---------------------------------------
JOSE FERNANDES PAULETTI
Chief Executive Officer of Tele Norte
Leste Participacoes S.A.

WITNESSES:

---------------------------------------
Name: ADRIANA REGINA LEITE NUNES
RG: 1.477.302 SSP/DF

---------------------------------------
Name: GERALDO MAGELA BENICIO JUNIOR
RG: 1.557.007 SSP/DF

                                                                              33<PAGE>

                                                                    Exhibit 10.6

INSTRUMENT PVSS/SPV NO. 09/98 - ANATEL

     INSTRUMENT OF AUTHORIZATION TO RENDER TELECOMMUNICATIONS CARRIER NETWORK
     SERVICES

By this instrument, AGENCIA NACIONAL DE TELECOMUNICACOES (the National
Telecommunications Agency), hereinafter referred to as ANATEL, a FEDERAL
GOVERNMENT entity, in exercising the authority bestowed on it under article 19,
IX, together with article 207, paragraph 3 of Federal Law No. 9472 of July 16,
1997, the General Telecommunications Law (Lei Geral de Telecomunicacoes - LGT),
herein represented by its President, RENATO NAVARRO GUERREIRO, Brazilian,
married, bearer of identity card RG No. 2.613.636-IFP/RJ and enrolled in the
Individual Taxpayers' Register of the Finance Ministry (CPF/MF) under No.
257.085.207-44, jointly with Board Member ANTONIO CARLOS VALENTE DA SILVA,
Brazilian, married, bearer of identity card RG No. 31547-CREA and CPF/MF No.
371.560.557-04, as per the approval of its Board of Governors contained in
Resolution No. 36, of July 21, 1998, published in the Official Gazette of the
Federal Executive (DOU) on July 22, 1998, AUTHORIZES, pursuant to article 131 of
the LGT, TELECOMUNICACOES DO RIO DE JANEIRO S.A - TELERJ, enrolled in CGC/MF
under No. 33.000.118/0001-79, hereinafter referred to as AUTHORIZED PARTY,
represented herein by its President, DANILO DE ALMEIDA LOBO, Brazilian, married,
bearer of identity card RG No. 1.404.016-IFP/RJ and CPF/MF No. 012.759.177-04,
and by its Services Director, LUIZ AMOR VIOLA CUERVO, Brazilian, married, bearer
of Identity Card RG No. 02.276.347-8-IFP/RJ and CPF/MF No. 126.981.307-25, to
provide the services described below, subject to rules and conditions defined
herein:

                         SECTION I - AUTHORIZED SERVICES

<PAGE>

1.1 - By this Instrument, TELECOMUNICACOES DO RIO DE JANEIRO S.A - TELERJ,
identified above, is authorized to render Telecommunications Carrier Network
Services for general public use, under a private system.

1.1.1 - The TELECOMMUNICATIONS CARRIER NETWORK SERVICE means the services that
are intended to convey between fixed points any voice, telegraph, data or any
other type of telecommunications signals.

1.1.2 - The rendering of the services listed in Exhibit I is encompassed in the
rendering of Telecommunications Carrier Network Services.

1.1.2.1 - The adaptation of any other services rendered as part of the subject
matter of this Instrument shall be conditional on ANATEL's prior consent.

1.1.3 - The rendering of the Switch Fixed Telephone Service intended for the use
of general public (STFC) and the rendering of Mass Communications Services, as
defined in the General Regulations on Telecommunications Services, have not been
included in the Telecommunications Carrier Network Services, having been
excluded from it.

1.2 - This Instrument does not grant the AUTHORIZED PARTY any exclusivity rights
or prerogatives, or any privileges in the rendering of the service being
authorized herein.

1.3 - AUTHORIZED PARTY undertakes to assure compliance with the social role of
the service that is the subject matter of this Instrument, as well as the
charges arising therefrom.

1.3.1 - Under public calamity or catastrophe situations, the AUTHORIZED PARTY
undertakes to offer its service to whatever public agencies may need them, on a
priority basis.

                           SECTION II - COVERAGE AREA

<PAGE>

2.1 - This Authorization covers the entire geographical area encompassed by
Sector 1 (one) of Region 1, as defined in Decree No. 2534 of April 2, 1998,
which approves the General Concessions Plan.

                           SECTION III - EFFECTIVENESS

3.1 - This Authorization has been issued for an indeterminate term, and its
effectiveness is conditioned to the maintenance of the requisites set out in
this Instrument, especially in Sections V, IX, X, XI and XX, to compliance with
the commitments that are of interest to the general public, as specified in item
15.2 of this Instrument, and to observance of the telecommunications
regulations.

                           SECTION IV - GRATUITOUSNESS

4.1 - This Authorization is issued free of charge pursuant to article 207,
paragraph 3, of the LGT.

4.1 - The gratuitousness referred to in item 4.1 dos not preclude the obligation
to pay the Installation and Operation Monitoring Fees, nor does it relegate the
remunerated nature of the authorizations to use radio frequencies, pursuant to
article 48 of the LGT, nor does it exclude the obligation to contribute to the
funds set forth in articles 77 and 81, II of the LGT.

4.2.1 - In case of failure to previously inform ANATEL pursuant to the
regulations, the cessation of the providing of the services or the use of
telecommunications stations shall not preclude the mandatory payment of the
respective fees.

            SECTION V - CONDITIONS FOR ISSUANCE OF THIS AUTHORIZATION

5.1 - AUTHORIZED PARTY specifically represents herein that it fulfills the
following conditions:

<PAGE>

I - that it has been incorporated according to Brazilian laws;

II - that its headquarters and management are located in Brazil;

III - that it has not been forbidden to enter into contracts with Public
Authorities;

IV - that it has not been declared disreputable;

V - that the forfeiture of the concession, permission or authorization to
provide telecommunications services granted or issued on its behalf over the
previous two years, has not been decreed;

VI - that its right to use the radio frequencies needed to provide the services
authorized herein has not been extinguished.

VII - that it has the necessary technical qualifications enabling it to provide
the services;

VIII - that it has the necessary economic and financial condition, and it is in
good standing as regards taxes and before Social Security;

IX - that it is in compliance with the provisions of article 207, paragraph 3 of
the LGT.

5.2 - During the execution of the service that is the subject matter of this
Authorization, the AUTHORIZED PARTY undertakes to adhere to all the conditions
referred to in item 5.1 on pain of termination as envisaged in this Instrument.

5.3 - AUTHORIZED PARTY is subject to the sanctions set out in the regulations,
particularly those in article 173 of the LGT, in case of inexistence or
irregularity of any of the conditions listed in this Section.

<PAGE>

           SECTION VI - RIGHTS AND OBLIGATIONS OF THE AUTHORIZED PARTY

6.1 - AUTHORIZED PARTY is entitled to freely provide the service established
herein, under a private system, and as any other party allowed to commercially
explore economic activities, AUTHORIZED PARTY must abide by the principles and
rules pertaining to free initiative and competition, to the social role of
property, to consumer protection and to repression to the abuse of economic
power.

6.2 - Whenever it feels it is being victimized by unfair competition or abuse of
economic power, the AUTHORIZED PARTY shall be entitled to submit a petition to
ANATEL.

6.3 - AUTHORIZED PARTY is free to contract third parties to develop activities
that are inherent, accessory or complementary to the service being authorized
herein, as well as to implement related projects, according to the regulations.

6.4 - During performance of the activities related to the authorized service,
the AUTHORIZED PARTY may make use of information pertaining to individual use of
the service by the user, and AUTHORIZED PARTY is also allowed to disclose to
third parties any aggregate information pertaining to the use of its services,
provided said disclosure does not result in the direct or indirect
identification of the user or in the violation of its privacy.

6.4.1 - The disclosure of individual information pertaining to the user shall
depend on the latter's specific and express permission.

6.5 - AUTHORIZED PARTY undertakes to abide by quality goals for the services
that have been established by ANATEL, as per the regulations.

6.6 - AUTHORIZED PARTY undertakes to maintain at ANATEL's disposal at any time
an updated file of the users that have contracted its services, said file to
contain at least the name or the company name of the user as well as its
domicile or headquarters.

<PAGE>

6.6.1 - Whenever so requested by ANATEL, the AUTHORIZED PARTY shall provide
information regarding the use of the services by the users.

6.7 - The keeping of separate accounting records pertaining to the service
authorized herein is an obligation of the AUTHORIZED PARTY, including the
segmentation of the accounting records pertaining to the industrial exploitation
of the means pertaining to the service.

6.8 - The infrastructure to be used by the AUTHORIZED PARTY in the rendering of
the service authorized herein must adhere to the technical rules and to
municipal and state laws relating to civil construction and to the installation
of cables and equipment on public thoroughfares.

6.9 - The amounts expended by the AUTHORIZED PARTY with foreign entities to
contract management services, including technical assistance, may not exceed the
following percentage rates of the annual revenues obtained from the service
authorized herein, net of any taxes and contributions:

A) one percent (1%) per year, until December 31, 2000;

B) zero point five percent (0.5%) per year, from January 1, 2001 to December 31,
2002;

C) zero point two percent (0.2%) per year, as of January 1, 2003.

6.9.1 - Decisions pertaining to item 6.9 shall be taken during extraordinary
shareholders meetings, and until December 31, 1998, the AUTHORIZED PARTY must
include in its bylaws that preferred shares shall be entitled to vote said
decisions, without prejudice to the provisions of article 115, paragraph 1 of
Law No. 6404, of December 15, 1976.

                           SECTION VII - USERS' RIGHTS

<PAGE>

7.1 - AUTHORIZED PARTY undertakes to abide by the rights of the users of the
services the rendering of which is being authorized herein, especially:

I - access to the service and its fruition within the quality, regularity and
efficiency standards envisaged in the regulations;

II - non-discriminatory treatment as to access conditions and the fruition of
the service;

III - access to adequate information as to the conditions pertaining to the
providing of the service and the prices charged;

IV - the inviolability and secrecy of its communications, in compliance with the
constitutional and legal events and conditions regarding the breach of
telecommunications confidentiality;

V - non-disclosure of its access code, free of charge, by means of a request
forwarded to the AUTHORIZED PARTY.

VI - prior cognizance of any and all changes made to the conditions for the
providing of the service, which may affect it directly or indirectly, including
and especially the events regarding the beginning of the services, their
suspension and termination;

VII - privacy as regards billing documents, and the use of its personal
information by the AUTHORIZED PARTY.

VIII - the receipt within reasonable timeframes of efficient answers to its
complaints;

IX - the forwarding of complaints or the filing of proceedings against the
AUTHORIZED PARTY before ANATEL or before the consumer protection organizations;

X - redress for the damages caused as a result of the breach of its rights;

<PAGE>

XI - not to be obliged to use services or to acquire goods or equipment in which
the client is not interested.

7.1.1 - A user is construed to be any individual which, directly or indirectly,
makes use of the service authorized herein, irrespectively of having contracted
it or not.

7.2 - The relationship between the AUTHORIZED PARTY and its users shall be
governed by private law, there not being established any legal relationship
between the users and ANATEL.

                      SECTION VIII - ANATEL'S PREROGATIVES

8.1 - Without prejudice to the remaining regulatory provisions, ANATEL shall:

I - assure adherence to the rules and regulations in effect, as well as those
that may be issued during the effectiveness of this Authorization;

II - inhibit any behavior prejudicial to free competition;

III - prevent economic concentration, including through the imposition of
restrictions, limits or conditions to convey this Instrument;

IV - inspect the service that is the subject matter of this Instrument, applying
all legal and regulatory sanctions; and

V - extinguish this Instrument in the cases envisaged in this instrument or in
the applicable legislation.

8.2 - ANATEL may impose restrictions to the providing of the service being
authorized herein, pursuant to article 128 of the LGT.

<PAGE>

8.3 - ANATEL may order that the AUTHORIZED PARTY stop transmissions immediately
from any telecommunications station that may cause harmful interference to the
regularly installed telecommunications services until such time when said
interference has been eradicated.

8.4 - ANATEL may carry out a survey to determine the satisfaction of the users
of the service being provided by the AUTHORIZED PARTY, disclosing the results of
this survey to the community.

        SECTION IX - GENERAL CONDITIONS FOR THE RENDERING OF THE SERVICE

9.1 - The service that is the subject matter of this Authorization shall be
provided according to the technical projects pertaining to its installations,
interfaces and points of interconnection, the AUTHORIZED PARTY pledging to
maintain said projects always up to date and made available to ANATEL.

9.1.1 - Within one hundred and eighty (180) days counted as of the execution of
this Instrument, the AUTHORIZED PARTY shall forward to ANATEL the summaries of
the updated technical projects pertaining to the service being authorized
herein, signed by an accredited professional and accompanied by its respective
Technical Responsibility Annotations (ART).

9.2 - AUTHORIZED PARTY undertakes to strictly adhere to all regulations having
to do with the service being authorized herein, subject as well to new
regulations and to any amendments that may be enacted.

9.3 - Without prejudice to compliance with the regulations referred to in item
9.2, the AUTHORIZED PARTY undertakes to abide for thirty-six (36) months counted
as of the issuance of this Instrument by the following provisions that are
applicable to the service authorized herein:

<PAGE>

     I - Decree No. 1589 of August 10, 1995;

     II - Interministerial Ordinance No. 166, of April 29, 1996;

     III - Ordinance No. 292 of November 29, 1995 issued by the Ministry of
Communications;

     IV - Ordinance No. 39, of April 10, 1991 issued by the National
Communications Department of the Ministry of Infrastructure;

     V - Interministerial Ordinance No. 162, of August 20, 1982 of the
Ministries of Education and Culture and that of Communications;

     VI - Ordinance No. 105 of October 22, 1985, issued by the Ministry of
Communications;

     VII - Ordinance No. 221, of April 3, 1997, issued by the Ministry of
Communications, pertaining to the National Security Agencies.

9.3.1 - During the timeframe referred to in item 9.3, the AUTHORIZED PARTY shall
be allowed to carry out a gradual phasing out of the benefits set forth in the
provisions contained in this same item by entering into an agreement with their
beneficiaries.

9.3.2. Once the timeframe envisaged in item 9.3 is over, the regime of free
prices envisaged in item 15.1 of this Instrument shall take effect.

9.4 - AUTHORIZED PARTY shall not have any vested rights to continue the
conditions in effect on the execution date hereof, and shall observe the new
conditions that may be imposed by law or by regulations to be issued by ANATEL.

<PAGE>

9.5 - AUTHORIZED PARTY shall ensure that installation of the telecommunications
stations and expansion thereof is in conformity with applicable regulations,
especially with regard to limitations related to distance from airports,
aerodromes, radio-goniometric stations and Indigenous areas

9.6 - The installation, operation and deactivation of a telecommunications
station shall observe the provisions set out in the regulations.

9.7 - AUTHORIZED PARTY shall be allowed to render the service authorized herein
at its own risk and expense, it being held fully accountable for any losses
arising from said rendering.

9.8 - AUTHORIZED PARTY shall be held solely liable for any damage suffered by
its users or by third parties due to the rendering of the service authorized
herein, and ANATEL shall be held harmless from and against any liability in this
regard.

9.9. Pursuant the provisions contained in the regulation, the equipment used by
the AUTHORIZED PARTY to provide the service hereunder must have been certified
by ANATEL or have a certification acceptable by the latter.

9.10. Upon contracting of the services and upon acquisition of the equipment and
materials entailed to the service which is the subject matter of this
Instrument, the AUTHORIZED PARTY agrees to take into account the offers posed by
independent suppliers, including the domestic ones, and to base its decisions
with respect to the different offers presented, on objective price criteria,
delivery conditions and technical specifications that have been set forth in the
appropriate regulation.

9.10.1. In instances where the offers are equivalent, the AUTHORIZED PARTY
undertakes to use as a tie-breaking criterion the preference to services offered
by domestic companies, to equipment and materials manufactured in Brazil,
including those

<PAGE>

manufactured using domestic technology. The equipollence referred to in item
9.10 shall be determined when, cumulatively:

I - the domestic price is equal to or lower than the price of the imported
product, FOB on the national territory, including all the taxes levied upon it;

II - the delivery price is compatible with the needs of the service; and

III - the technical specifications set forth in the appropriate regulation have
been met, and they have a certification either issued or accepted by ANATEL, as
the case may be.

9.10.2 - Services are construed as those which are associated to research and
development, planning, project, implementation and physical installation,
operation, maintenance, supervision and evaluation tests of telecommunications
systems.

9.10.3 - The placing into operation of the provisions of item 9.10 shall be
regulated by ANATEL, including any applicable sanctions.

9.11 - AUTHORIZED PARTY is entitled to a non-discriminatory treatment and to
fair prices and conditions for use, in the providing of the service hereunder,
of public assets, posts, ducts, pipelines and easements belonging to
telecommunications services providers of public interest or controlled by them,
or other services that are of public interest.

9.11.1 - AUTHORIZED PARTY shall deal directly with the owners or controllers of
the assets or means referred to in item 9.11, and ANATEL shall not have any
obligation to render said assignments viable, except for the provisions of the
regulations pertaining to telecommunications services providers.

9.12 - As long as this Authorization remains in effect, the AUTHORIZED PARTY and
its controllers undertake to assure the actual existence within the national
territory of the deliberation and implementation centers for strategic,
managerial and technical decisions

<PAGE>

involved in the accomplishment of this Instrument, including causing said
obligation to reflect on the composition of, and in the decision-making
procedures of its administrative bodies.

9.12.1 - Up until December 31, 1998, the AUTHORIZED PARTY shall include in its
bylaws provisions assuring compliance with the provisions contained in item
9.12.

9.13 - AUTHORIZED PARTY shall be required to accomplish the commitments
undertaken before its users on dates prior to the execution of this Instrument,
subject to the conditions of the agreements entered into and the obligations set
forth in this Instrument, and in case of conflict, the terms that are favorable
to the user shall prevail.

9.13.1 - AUTHORIZED PARTY may amend said agreements and commitments by entering
into agreements with the users.

     SECTION X - SPECIFIC CONDITIONS FOR PROVIDING AND EXPLORING THE SERVICE

10.1 - The suspension of the service authorized herein or of any of its
portions, such as defined in the regulations, and for a period in excess of
twenty-four (24) consecutive hours, shall be justified to ANATEL within
forty-eight (48) hours.

10.2 - The industrial exploitation by the AUTHORIZED PARTY of the means related
to the service that is the subject matter of this Authorization shall be
accomplished in a fair, equitable, and non-discriminatory manner, and it shall
be the object of distinct accounting records, pursuant to item 6.7 of this
Instrument.

10.3. Traffic is allowed between STFC networks and the service network being
authorized herein throughout the national territory, with due regard for the
provisions of item 1.1.3 of this Instrument.

<PAGE>

10.4 - Once the parameters, conditions and rules in effect at the time of
execution of this Instrument have been accomplished, and pursuant to the
provisions of article 135 of the LGT, the AUTHORIZED PARTY undertakes to provide
preferential access to the authorized service to the following agencies:

     I - Essential agencies associated to the President of the Republic;

     II - The Commanding Staff of the Armed Forces;

     III - The Ministry of the Navy;

     IV - The Ministry of the Army;

     V - The Ministry of the Air Force;

     VI - The Ministry of Justice;

     VII - The Federal Police Department;

     VIII - The Military Police and the Fire Department.

10.4.1 - The commitment described in item 10.4 shall encompass the agencies or
entities that may come to fully or partially undertake the functions of the
agencies named therein.

           SECTION XI - AVAILABILITY OF RADIO FREQUENCY AUTHORIZATION

11.1 - Irrespectively of the payment of any surcharge, the AUTHORIZED PARTY is
entitled to continue using the radio frequencies it was already using before
July 16, 1997, associated to the providing of the service being authorized
herein, with due regard for the conditions set forth in the regulations.

<PAGE>

11.1.1 - Pursuant to the provisions of article 207 of the LGT, said
authorization to use the radio frequencies shall remain in effect until December
31, 2005, the AUTHORIZED PARTY being assured a single compensated extension for
an additional period of fifteen (15) years.

11.1.2 - The provisions contained in item 11.1 do not preclude the mandatory
payment of the required Fees and Contributions, pursuant to the law.

11.2 - The authorization to use radio frequencies that have not been included in
item 11.1 of this Instrument shall be charged apart pursuant to the regulations.

11.3 - ANATEL shall evaluate all requests for authorization to use radio
frequencies set aside for the expansion or to support the services being
authorized herein, taking into account the possible restrictive characteristics
as regards the execution of the service, the rational use of radio-electric
spectrum and the public interest, with due regard for the provisions contained
in the regulations.

11.4 - The right to use the radio frequencies referred to in this Section do not
preclude ANATEL's prerogative to modify their use or to order a change in the
power or in other technical characteristics.

11.5 - The unjustified failure to use the radio frequencies shall expose the
AUTHORIZED PARTY to the applicable sanctions, pursuant to the regulations.

SECTION XII - CONFIDENTIALITY

12.1 - AUTHORIZED PARTY shall abide by the obligation to keep strictly secret
and confidential the service being authorized, employing all possible means and
technology to assure this right to its users.
<PAGE>

12.2 - AUTHORIZED PARTY shall make available the necessary technical resources
to suspend confidentiality regarding telecommunications ordered by the courts,
pursuant to the regulations.

                         SECTION XIII - INTERCONNECTION

13.1 - The interconnection with the telecommunications network shall comply with
the provisions of the law.

              SECTION XIV - RULES REGARDING ABUSE OF ECONOMIC POWER

14.1 - AUTHORIZED PARTY undertakes to provide the service being authorized
herein in strict compliance with the rules governing abuse of economic power,
not to prejudice free competition, and not increase profits at will or to exert
a dominant position within the market in an abusive fashion.

               SECTION XV - REMUNERATION FOR THE SERVICES PROVIDED

15.1 - AUTHORIZED PARTY is free to set its prices to provide the services
hereunder, provided it does so in a fair, equitable and non-discriminatory
fashion, pursuant to the provisions in 9.3 and 9.13.

15.2. The commitments referred to in items 1.3.1, 9.3, 9.13, 10.4 and 17.3 of
this Instrument are of public interest, pursuant to article 135 of the LGT, and
they are fully undertaken by the AUTHORIZED PARTY, which shall absorb the costs
inherent therein through its own rendering of the services, without being
entitled to any reimbursement or indemnity from ANATEL.

                             SECTION XVI - TRANSFER

<PAGE>

16.1 - AUTHORIZED PARTY may only transfer its corporate control or this
Authorization to third parties after having obtained prior consent from ANATEL,
with due regard for the regulations.

16.2 - AUTHORIZED PARTY may undergo the process of spin-off, merger,
transformation, incorporation or downsizing of its capital stock, provided the
conditions listed in item 5.1 of this Instrument are complied with.

16.2.1 - Within at most sixty (60) days counted as of their accomplishment, any
changes made pursuant to the provisions of item 16.2 must be submitted to be
homologated by ANATEL by means of a petition substantiated by evidence that the
provisions listed in item 15.1 have been complied with.

        SECTION XVII - NON-OBLIGATION TO CONTINUE AND THE RIGHT OF WAIVER

17.1 - This Instrument does not impose on AUTHORIZED PARTY the duty to provide
continuity to the services, and AUTHORIZED PARTY shall be entitled to waiver
pursuant to the terms of article 142 of the LGT, with due regard for the
provisions of this Instrument.

17.1.1 - The right of waiver does not eliminate the duty of AUTHORIZED PARTY to
ensure users, as established in this Instrument and in the regulation, to be
notified in advance of any interruption or suspension of the services.

17.1.2 - Likewise, the right of waiver does not preclude the AUTHORIZED PARTY
from the duty to accomplish its commitments that are of interest to the
community, undertaken by it upon the execution of this Instrument.

17.2 - Without prejudice to the provisions in items 6.5 and 10.1 of this
Instrument, the agreements to be entered into between the AUTHORIZED PARTY and
its users shall contain clauses envisaging the terms for the cessation or
suspension of services, the term that must precede the communication to that
effect, and the discount in the corresponding

<PAGE>

prices, there being assured to the user the right to be informed of the
discontinuance of the services by means of an advance notice which may not be
less than:

     I - Forty-eight (48) hours in case of a suspension not caused by force
majeure.

     II - One hundred and eighty days (180) in case of cessation.

17.2.1 - For the purposes of this Instrument, the following definitions shall
apply:

     I - cessation - permanent interruption of the services;

     II - suspension - temporary interruption of the services.

17.3 - In case of the entities referred to in item 10.4, except for instances of
force majeure and default of the user, the cessation of services may only occur
if an advance notice of at least sixty (60) days is given.

17.3.1. The discontinuity in the providing of services to the entities mentioned
in item 17.3 may give rise not only to the sanctions that may be applicable, but
also to a request by ANATEL to have the Executive Branch declare imminent domain
over the assets and equipment that are essential to the continuity of the
services, it being set forth for the purposes of prior indemnity, the amount
corresponding to the revenues obtained over the last twelve (12) months as
result of the providing of the specific services, as posted in separate
accounting records in compliance with item 6.7 of this Instrument.

                           SECTION XVIII - MONITORING

18.1 - AUTHORIZED PARTY shall permit the ANATEL agents at any time, free access
to the equipment and facilities relating to the rendering of the service and its
accounting records, and moreover, shall provide them with all the documents and
information required for performance of the monitoring activities.

<PAGE>

18.1.1 - AUTHORIZED PARTY may appoint an assignee to accompany ANATEL's
inspectors during their visits, inspections and activities.

18.1.2 - In compliance with the provisions of article 64 of its Regulations,
approved by Decree No. 2388 of October 7, 1997, ANATEL may give confidential
treatment to the technical, operational, economic and financial, and accounting
information that it may request from the AUTHORIZED PARTY.

18.2 - AUTHORIZED PARTY undertakes to pay all monitoring fees pursuant to the
law, especially Installation and Operation Monitoring Fees.

18.2.1. Said monitoring fees shall be paid as per the table found in Exhibit I
to Law No. 5070 of July 7, 1966, together with its amendments.

                             SECTION XIX - SANCTIONS

19.1. During the effectiveness of this Instrument, the AUTHORIZED PARTY may be
subject to the sanctions listed below, which shall be imposed as result of a
substantiated decision handed down by ANATEL assuring the AUTHORIZED PARTY the
right to due process, without prejudice to sanctions of a civil and penal
nature:

     I - WARNING, which means a formal admonition, whether public or not, served
to the AUTHORIZED PARTY when small irregularities or flaws are detected to exist
in the providing of the authorized services.

     II - FINES - applicable under the following circumstances:

     A) an act or omission contrary to the provisions contained in this
Instrument, which may give rise to losses to competition in the
telecommunications sector, irrespective of any

<PAGE>

measures that may be adopted by CAD; fine up to R$25,000,000.00 (twenty-five
million reais);

     B) failure to comply with the commitments envisaged in this Instrument or
in the regulations, which have not been mentioned in this sub-item; said fine to
extend up to R$ 20,000,000.00 (twenty million reais), without prejudice to the
levying of other penalties envisaged in article 173 of the LGT;

     C) act or omission which may result in the violation of the rights of the
users of the service being authorized herein, or which may cause losses to them
as a result of the noncompliance with the quality goals established in item 6.5,
or as result of discrimination as regards access and fruition of the service,
irrespective of any measures that may be adopted by the National Consumer
Protection System; fine up to R$ 15.000.000,00 (fifteen million reais);

     D) noncompliance with the obligation to engage services and to purchase
equipment and materials manufactured in Brazil, equipollent to those available
abroad, pursuant to the provisions of item 9.10; fine up to R$10.000.000,00 (ten
million reais);

     E) act or omission which might cause hindrance or problems to ANATEL to
exercise its monitoring activity, or which may imply in noncompliance with the
obliations set out in this Instrument, in the regulations or in specific rules;
fine up to R$ 5,000,000.00 (five million reais);

     F) use of non-certified chattels or equipment, when certification is
required; fine up to R$2,000,000.00 (two million reais);

     III - FORFEITURE - applicable in the instances set out in Section XX of
this Instrument, without prejudice to the fines envisaged therein.

<PAGE>

19.2 - The non-payment, or the untimely payment of any fine set by ANATEL
pursuant to the provisions of this Instrument or the regulations, shall be
construed as a serious breach, and it may cause the forfeiture of this
Authorization.

19.2.1 - Any delays in the payment of the fines set out in item 19.2 shall cause
the levying of an arrears fine of 0.33% (zero point thirty-three percent) per
day, capped at ten (10%) percent over the amount due, accreted by the SELIC
interest rate, to be levied over the amount of the debt, taking into account all
the days of delay regarding the payment.

19.3 - The amounts of the fines envisaged in this Section shall be adjusted
annually for inflation according to the IGP-DI rate of adjustment.

19.4. When applying and ascertaining the sanctions, ANATEL shall observe the
following circumstances:

     I - damages caused to the service and to users, as arising from the
infraction.

     II - the nature and the seriousness of the infractions;

     III - possible benefits obtained by the AUTHORIZED PARTY as deriving from
the infraction;

     IV - the partaking of the AUTHORIZED PARTY in the market within its
geographic area of operations;

     V - the background of the AUTHORIZED PARTY;

     VI - specific recidivism, construed as the repetition of a like
transgression after having been served notice regarding the previous one;

<PAGE>

     VII - general aggravating or attenuating circumstances regarding the
infraction, as set forth in this Instrument.

19.4.1 - As regards the specific assessment of the fines, besides the general
circumstances observed in item 19.4, ANATEL shall take into account the
principle of proportionality between the seriousness of the fault and the
intensity of the sanction.

19.5. - The existence of a prior sanction shall be construed as an aggravating
circumstance as regards the application of another sanction.

19.6 - The application of the sanctions envisaged in this Instrument shall be
preceded by an administrative proceeding, abiding by the rite envisaged in
ANATEL's Internal Regulations, there being assured the formulation of a
circumstantiated charge, the full defense of the AUTHORIZED PARTY and the
confidentiality of the facts until their full investigation.

19.6.1. Under special circumstances, and in light of material urgency, ANATEL
may apply urgent provisional relief measures before the AUTHORIZED PARTY
exercises its right to defense.

                           SECTION XX - EXTINGUISHMENT

20.1 - This Instrument shall be extinguished as result of cessation, forfeiture,
decline, waiver or annulment, with due regard for the provisions of this
Section.

20.2. The cessation of this Authorization may be determined in case the
AUTHORIZED PARTY incurs into one of the following conditions:

     I - Loss of the objective conditions underlying the issuance or continuity
of this Instrument;

<PAGE>

     II - loss of the subjective conditions underlying the issuance or
continuity of this Instrument;

     III - continued irregular standing before the tax authorities or Social
Security;

     IV - later enjoinment to bid or to contract with Public Authorities;

     V - later representation of loss of uprightness;

     VI - extinguishing of the authority to use the radio frequencies that are
essential to the providing of the service being authorized herein;

     VII - ruling of bankruptcy.

20.3. The forfeiture of this Authorization may be decided in the following
circumstances:

     I - practice of a serious infraction;

     II - the irregular transfer of the authorization;

     III - repeated non-compliance of the commitments undertaken in this
Instrument or in the regulations;

     IV - failure to pay the monitoring fees.

20.3.1 - Without prejudice to other instances that may be set forth in the
regulations, the following are considered as being serious transgressions:

     I - the unjustified suspension of the service for over one (1) month;

     II - the failure to pay the fees or contributions levied over the service.

<PAGE>

20.4 - The decay of this Instrument shall be decreed in case of future
legislation which may prohibit the activity which is the subject matter of this
Authorization, or if its exploitation is suppressed by a private company.

20.5 - The waiver may be accomplished if, through a formal, unilateral and
irreversible act, the AUTHORIZED PARTY comes to represent through a simple
request its lack of interest to continue rendering the service, except for the
provisions referring to the commitments envisaged in this Instrument.

2.5.1 - Said waiver shall not release the AUTHORIZED PARTY from its covenants
before third parties, particularly as regards the users, with due regard for the
provisions of Section XVII of this Instrument, as applicable.

20.6. The annulment of the authorization shall derive by the recognition of
administrative or judicial authorities of any irregularities regarding this
Instrument which are impossible to remedy.

20.7. The administrative extinguishing of this Authorization in any of the
instances described in this Section shall be decreed during an administrative
proceeding especially incepted for this purpose, which, however, shall assure
the AUTHORIZED PARTY the right to defense, with due regard for the provisions in
the Internal Regulations of ANATEL as regards the Sanctioning Procedures.

20.7.1. In case said extinguishing has been predicated on a preceding
administrative decision, assuring the right to defense, the AUTHORIZED PARTY
shall be allowed to discuss again matters that have been already decided, or to
present its defense or proof which could have been arisen during the previous
administrative proceeding.

<PAGE>

20.7.2 - The provisions of the previous item apply to prior administrative
decisions taken by ANATEL and to the decisions taken by other Federal, State,
Federal District or Municipal administrative agencies.

20.7.3 - In the instance outlined in item 20.3, IV of this Instrument, only the
provisions of article 8 of Law No. 5070 of 1966 and its subsequent amendments
shall apply.

20.7.4 - In case of waiver, the administrative proceeding shall serve to confirm
the authenticity and the effectiveness of the manifestation of disinterest by
the AUTHORIZED PARTY, as well as the accomplishment of the commitments that are
of interest to the community.

20.8 - In case a regulation is enacted enjoining the activity being authorized
herein, or suppressing the rendering of the service under a private regime,
ANATEL shall incept an internal proceeding in which it shall evaluate if the
maintenance of this Authorization is incompatible with the public interest.

20.8.1 - If the incompatibility mentioned in item 20.8 is determined to exist,
ANATEL shall incept a contradictory proceeding purporting to extinguish this
Authorization, subject to the provisions of item 20.7 of this Instrument.

20.8.2 - The act extinguishing this Authorization as result of decay shall set
forth a term of at least five years during which the AUTHORIZED PARTY shall be
allowed to carry on its activities, except if said AUTHORIZED PARTY is
expropriated during this timeframe.

            SECTION XXI - EFFECTIVENESS, EFFICIENCY AND JURISDICTION

21.1. This Instrument shall take effect and it shall become efficient as of the
publication of its excerpt in the Official Gazette of the Federal Executive.

<PAGE>

21.2. The parties elect the courts of the Judiciary Section of the Federal
Courts in the City of Brasilia, Federal District, to the exclusion of any other
courts however privileged they may be, to settle any disputes arising out of
this Instrument of Authorization.

In Witness Whereof, the parties sign this instrument in three (3) counterparts
of equal form and content, in the presence of the undersigned witnesses to
produce legal and judicial effects.

Brasilia, Federal District, July 27, 1998

ANATEL
RENATO NAVARRO GUERREIRO
President
Agencia Nacional de Telecomunicacoes - ANATEL

ANTONIO CARLOS VALENTE DA SILVA
Board Member
Agencia Nacional de Telecomunicacoes - ANATEL

TELERJ
DANILO DE ALMEIDA LOBO
President
TELERJ

LUIZ AMOR VIOLA CUERVO
Services Director
TELERJ

WITNESSES

<PAGE>

Name: Sergio Renan Kern
ID No. 396.544-SSP/F

Name: Dirceu Baravieira
ID No. 5.380.723-SSP/DF

<PAGE>

                                    EXHIBIT I

LIST OF THE SERVICES GRANTED UNDER THE AEGIS OF LAW NO. 4117 OF AUGUST 27, 1962,
ENCOMPASSED IN THE RENDERING OF TELECOMMUNICATIONS CARRIER NETWORK SERVICES

1. SPECIAL TV AND VIDEO SIGNAL REPLICATION SERVICE

* Decree No. 2593 of May 19, 1998

2. SPECIAL AUDIO SIGNAL REPLICATION SERVICE

* Ordinance No. 294 of October 22, 1985 - Rule 02/85

* Ordinance No. 293 of November 14, 1991 - Rule 006/DNPV

3. DEDICATED LINE SERVICE (SLD)

* Ordinance 285 of November 29, 1995 - Rule 9/95

     3.1. DEDICATED LINE SERVICE FOR ANALOGICAL SIGNALS (SLDA)

     * Ordinance No. 286 of November 29, 1995 - Rule 10/95

     3.2. DEDICATED LINE SERVICE FOR DIGITAL SIGNALS (SLDD)

     * Ordinance No. 287 of November 29, 1995 - Rule 11/95

4. SWITCH NETWORK SERVICE PER PACKAGE

* Ordinance No. 086 of April 11, 1988 - Rule 001/88

* Ordinance No. 770 of October 13, 1994 - Rule 022/94

5. SWITCH NETWORK SERVICE PER CIRCUIT

<PAGE>

* Ordinance No. 290 of November 29, 1995 - Rule 18/95

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