Document:

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                                                                    EXHIBIT 10.2

                              AOL - BRASIL TELECOM
                      NETWORK SERVICES AGREEMENT TERM SHEET

OVERVIEW

AOL Brasil Ltda., with head offices at Av. Industrial 600, 2.Andar, in the City
of Santo Andre, State of Sao Paulo, enrolled with CNPJ under n.
03.032.579/0001-62 (AOL) and Brasil Telecom S.A., with head offices in the city
of Brasilia-DF, at SIA Sul, ASP, Lote "D" , Bloco "B", enrolled with CNPJ/MF
under n(0) 76.535.764/0001-43 ("Vendor") will enter into a definitive agreement
(the "Agreement") based upon the terms below and Exhibit A, B, C, D, E and F
hereto, which describe Vendor's provision of dialup access services (the
"Services") within the "Service Areas," defined as Brazil's Region II as defined
by ANATEL's "Plano Geral de Outorgas" (the "Initial Service Area") and any other
areas requested from time to time by AOL in which Vendor offers or provides dial
up access services (each, an "Additional Service Area").

SERVICE REQUIREMENTS

SPECIFICATIONS. The Services will conform fully to the specifications in Exhibit
A.

SERVICE LEVELS. The Services will meet or exceed the performance standards in
Exhibit B.

SERVICE DESCRIPTION

DEDICATED PORTS. Vendor will provide the Services on a dedicated ports basis,
using shared access infrastructure (RAS). AOL shall order a multiple of [**]
ports per location.

SERVICE COMMITMENTS

TERM. The term of the transaction contemplated herein and in the Agreement shall
be equal to 3 years from the date in which this Term Sheet is executed. AOL may
elect to renew the agreement for up to 3 additional one-year periods by giving
30 days' notice prior to expiration of the then-current term.

TRAFFIC COMMITMENT: AOL will be required to generate a [**] equivalent to an
average of [**] minutes of traffic per month per installed port ("[**]"). The
[**] shall be considered with respect to the whole network, as an aggregated
traffic, and not in a per port basis. In case AOL fails to meet the [**]
described herein, then Vendor shall notify AOL of such failure, and AOL shall
have [**] days to cure such failure. AOL shall review the network capacity
requirement, and cancel idle capacity so that the [**] is met when taken as an
average of the next [**] months following such cancellation.

DECOMMISSIONING.
At any time during the Term, AOL may decommission or cancel any installed Port
at its own discretion, upon [**] days' prior written notice to Vendor without
the payment of any penalties or fees from AOL to Vendor, provided [**] the [**]
for the [**], if any.

SERVICE CHARGES

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PORT PRICING. All charges relating to the Services in the Initial Service Areas
are set forth in Exhibit D - Pricing for Additional Service Areas will be agreed
by the parties following AOL's request to Vendor to provide Services in such
areas.

PAYMENT TERMS. All charges due under this Term Sheet and/or the Agreement shall
be invoiced in R$ in arrears to AOL. All undisputed charges shall be payable
within [**] days of receipt of the corresponding invoice. AOL may withhold
payment of particular charges that AOL disputes in good faith. In the event that
AOL withholds payment pursuant to this section, AOL will provide Vendor with
written notice of the dispute within the [**] period described in this Section
and will engage in good faith discussions with Vendor to resolve such disputed
charges during such [**] period.

OFFSET. Any fees, charges, credits, debts, or other amounts payable ("Charges")
by AOL to Vendor under this Term Sheet and/or the Agreement are subject to
offset against other Charges owed by Vendor to AOL under this Term Sheet and/or
the Agreement or any other agreement executed between the Parties.

TAXES. Vendor will be responsible for any taxes or duties imposed on the
acquisition or use of any goods or services involved in providing the Services
Except if in contrary agreed by the Parties in written, any and all prices
provided in Exhibits to this Term Sheet, and/or included in the Agreement,
contain any all taxes applicable to the transaction provided herein,
notwithstanding AOL's obligation to comply with tax provisions contained in
the applicable Brazilian legislation or regulation. If taxes due as of the date
of the execution of this Term Sheet are changed as a result of changes in the
applicable legislation or regulation or as a result of decisions of competent
Brazilian authorities, than the prices provided in the Exhibits of this Term
Sheet and in the Agreement shall be reviewed respectively and Vendor shall
inform AOL of such changes.

EXCLUDED CHARGES. Vendor will not charge AOL for any Port that is used for [**]
purposes. For, Also, Vendor will not charge AOL for any Port to which calls are
[**], beginning on the [**] day in which such Port is [**] and continuing until
the Port is no longer [**].

STRATEGIC PROTECTIONS

MOST FAVORED CUSTOMER. Neither Vendor nor its affiliates will offer or provide
dialup access services that are reasonably comparable to the Services to any
customer that purchases services in amounts equivalent to (or lesser than) AOL's
amounts, (1) at prices that are lower than those charged to AOL, or (2) pursuant
to any terms and conditions that are more favorable to such customer than AOL's
terms and conditions (each of (1) or (2), "More Favorable Terms"). If Vendor or
an affiliate offers or provides (a) dialup access services that are NOT
reasonably comparable to the Services to any customer, or (b) dialup access
services that are reasonably comparable to the Services on More Favorable Terms
to any customer that purchases services in amounts GREATER than AOL's amounts,
Vendor will offer to provide to AOL such services on [**] and [**] and [**]
applicable to such customer.

MARKET PRICE ADJUSTMENTS. From time to time, AOL will be entitled to notify
Vendor of a required adjustment to pricing for the Services in order to reflect
changes in the relevant Market Price in any Service Area. "Market Price" means,
in each Service Area, the lower of (a) the [**] offered to AOL by a vendor of
dialup access services that are reasonably comparable to the Services, and (b)
the [**] cost to AOL of provisioning dialup access services that are reasonably
comparable to the Services, plus a markup of [**]. If AOL notifies Vendor of a
lower Market Price in any Service Area then, AOL and Vendor will negotiate new
prices for the Services, and Vendor will make its best efforts to meet the

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Market Price. Vendor will be entitled to confirm the Market Price within such
[**] period pursuant to mutually agreed audit procedures set forth in this Term
Sheet and/or the Agreement. In addition, in connection with a Market Price
request, Vendor will meet the available bandwidth per port offered by the Market
Price provider to AOL within [**] after AOL's notification. In case Vendor is
unable to meet the Market Price then AOL shall have the right to terminate the
this Term Sheet and/or the Agreement immediately upon notice to Vendor.

COST SAVINGS. If Vendor's costs associated with the Services in a Service Area
decrease as a result of (i) changes to the telecommunications regulatory regime,
or (ii) reductions in cost from Vendor's wholesale supplier(s) of services used
to provide the Services, the Service charges will be reduced by the amount of
such savings.

REGULATORY PROTECTIONS. As soon as dialup access services utilizing [**] ports
become available in any Service Area as a result of [**] addressed by [**],
Vendor will offer to provide Services utilizing such ports to AOL (and to
convert any of AOL's existing Ports upon AOL's request) as soon as practicable,
but no later than within [**] days of the new regulation date. Pricing for new
and converted Ports will be at initial Market Prices that reflect the
then-current, competitive market prices in such Service Area.

NEW SERVICES. If Vendor or a Vendor Affiliate is able to offer any new services
that would permit AOL to provide services to its end-users in a manner
reasonably comparable to the manner in which AOL provides services to its
end-users through AOL's use of the Services, but (a) at a lower overall cost to
AOL, or (b) at the same cost to AOL but with increased or enhanced capacity,
features or functionality relative to the Services (each of (a) or (b), a "New
Service"), then (i) Vendor shall promptly notify AOL and, before Vendor or a
Vendor Affiliate uses such New Service or offers such New Service to any
affiliated or unaffiliated third party, Vendor shall offer such New Service to
AOL at such [**] cost to AOL; and (ii) Vendor shall permit AOL to elect to
transition all or a portion of the Services to such New Service at [**] to AOL;
provided, however, that if AOL has not ordered such New Service within a
mutually agreed reasonable period (based on the complexity of the New Service)
following Vendor's notice, Vendor may offer it to affiliated and unaffiliated
third parties.

TERMINATION

TERMINATION FOR CAUSE. Either party may terminate this Term Sheet and/or the
Agreement in the event of (a) a material breach by the other party, if not cured
within [**] days after written notice, or (b) repeated material breaches of this
Term Sheet and/or the Agreement of a similar nature (even if cured), or a
prolonged material breach of this Term Sheet and/or the Agreement (even if
cured).

TERMINATION FOR CHANGE IN CONTROL. AOL may terminate this Term Sheet and/or the
Agreement in the event of (i) a change in control of Vendor to an AOL
competitor, or (ii) a change in control of Vendor that would result in a
material degradation of the Services as [**] by [**]. Vendor may terminate this
Term Sheet and/or the Agreement in the event of a change in control of AOL to a
Vendor competitor.

TRANSITION ASSISTANCE. Upon expiration or termination of the Term, AOL may
decommission Services and Vendor will (i) provide reasonable assistance and
consultation to ensure a smooth and timely transition of AOL's Services to
another vendor, and (ii) continue to provide the Services at prices then in
effect. The length of this transition period will be determined by AOL in its
reasonable discretion but will not exceed [**] months.

Termination Without Cause. If AOL decides to terminate the Term Sheet and/or the
Agreement without cause at any time during the Term, than AOL shall give Vendor
a [**] days prior written termination notice, and pay a penalty fee equivalent
to the last invoice paid by AOL pursuant to this term Sheet and/or the agreement

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multiplied by the number of months remaining until the end of the Term, if the
last invoice paid, refers to less then [**] ports, the penalty fee must be
calculated based on [**] port. Such penalty shall be due and payable within [**]
days from the date in which the transactions contemplated herein are effectively
terminated.

ADDITIONAL TERMS

INDEMNITIES. Each Party agrees to indemnify, defend and hold the other Party
harmless for damages, losses, or liabilities (including reasonable attorneys'
fees) (collectively, "Losses") incurred by such other Party arising from any
third party claims (i) arising from the indemnifying Party's material breach of
any obligation, representation or warranty under this Term Sheet and/or the
Agreement, or (ii) relating to any physical damage to property, or personal
injury or death, caused by the indemnifying Party or any of its Affiliates,
agents or subcontractors. AOL agrees to indemnify, defend, and hold Vendor
harmless from Losses arising from any third party claims of intellectual
property rights infringement arising from any AOL-developed materials provided
to Vendor to provide the Services. Further, Vendor agrees to indemnify, defend,
and hold AOL harmless from Losses arising from any third party claims of
intellectual property rights infringement arising from the Services or from any
materials or services utilized to provide the Services. If any item described in
the last sentence becomes, or is likely to become, the subject of an
infringement or misappropriation claim or proceeding, Vendor shall, in addition
to indemnifying AOL as provided above, promptly at Vendor's expense use best
efforts to (i) secure the right to continue using the item, or (ii) replace or
modify the item to make it non-infringing, provided that any such replacement or
modification shall not degrade the performance or quality of the affected
component of the Services. In the event neither of such actions can be
accomplished by Vendor, and only in such event, Vendor shall remove the item
from the Services and the applicable charges under this Term Sheet and/or the
Agreement shall be equitably adjusted to reflect such removal and if such
removal may reasonably cause degradation of performance or quality of the
affected component of the Services as required by the Exhibit 2 - Service Level
Agreement, AOL may at its option terminate this Term Sheet and/or the upon
notice to Vendor.

INDEMNIFICATION PROCESS. If AOL becomes aware of any matters it believes is
indemnifiable hereunder involving any claim, action, suit, investigation,
arbitration or other proceeding against AOL by any third party (each an
"Action"), AOL shall gibe Vendor prompt written notice of such Action. Such
notice shall (i) provide the basis on which indemnification is being asserted
and (ii) be accompanied by copies of all relevant pleadings, demands and other
papers related to the Action and in the possession of AOL. Vendor shall have a
period of 10 (ten) days after delivery of such notice to respond. If Vendor
elects to defend the Action, or does not respond within the requisite 10 (ten)
day period, Vendor shall obliged to defend the Action at its own expense. AOL
shall reasonably cooperate, with Vendor and its counsel in the defense, and AOL
shall otherwise have the right to participate fully, at its own expense, with
AOL and its counsel in the defense against such Action. If Vendor responds
within the required 10 (ten) day period and elects not to defend such Action,
AOL shall, without prejudice to any AOL rights hereunder (including item
relating to Indemnities above), defend (and control the defense of) such Action.
In such case, Vendor shall cooperate, at its own expense, with AOL and its
counsel, in the defense against such Action.

LIMITATION OF LIABILITY. Neither Party shall have any liability whatsoever for
any indirect, incidental, consequential, or special damages suffered by the
other Party or by any assignee or other transferee of the other Party, even if
informed in advance of the possibility of such damages. Notwithstanding the
foregoing, the limitations set forth herein shall not apply with respect to: (i)
damages caused by the wrongful repudiation or wrongful termination of this Term
Sheet and/or the Agreement by Vendor or by the abandonment of work by Vendor;
(ii) damages caused by willful misconduct or gross negligence of a Party; (iii)
damages or recovery caused by a Party's breach of any of its obligations
regarding Confidentiality, as provided herein and/or in others confidentiality
agreements entered into by the parties; and (iv) damages with respect to claims

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that are the subject of indemnification pursuant to Indemnities, as provided
above. Each Party shall have a duty to mitigate damages for which the other
Party is responsible.

CONFIDENTIALITY. The parties agree to maintain any and all terms and conditions
set forth herein confidential and not disclose such information to any third
parties without the prior written approval by the other party. If requested or
required, the parties are hereby authorized to disclose any information
contained herein to, or pursuant to any rule or regulation promulgated by, any
competent governmental authority, including the SEC (Security Exchange
Commission). Further, in the event such disclosure is required of either party
under the laws, rules or regulations of any applicable governing body, such
party shall (a) redact mutually agreed-upon portions of this Term Sheet to the
fullest extent permitted under applicable laws, rules and regulations and (b)
submit a request to such governing body that such portions and other provisions
of this Term Sheet receive confidential treatment or otherwise be held in the
strictest confidence to the fullest extent permitted under the laws, rules or
regulations of the applicable governing body. Notwithstanding the foregoing,
AOLB may disclose this Term Sheet to America Online, Inc., America Online Latin
America, Inc. and/or the Cisneros Group.

PUBLIC RELATIONS Neither party shall issue a news release, public announcement,
advertisement, or other form of publicity concerning the existence or the terms
of the Term Sheet and/or the Agreement without obtaining prior written approval
from the other party, which may not be unreasonably denied by such other party.

LAW AND JURISDICTION. This Term Sheet and the Agreement shall be interpreted and
the rights and liabilities of the parties hereto determined in accordance with
the laws of the Federal Republic of Brazil and the parties hereby agree to
exclusively submit to the central court (foro central) of the Capital of the
State of Brasilia - DF any action arising out of or relating to this term sheet.

NON-WAIVER. No delay or failure on the parties in exercising any rights
hereunder shall operate as a waiver of such right or otherwise prejudice the
party's rights, powers and remedies. No waiver by a party will be effective
unless it is in writing and then only to the extent specifically stated, and no
waiver by a party on any occasion shall effect or diminish such party's
rights thereafter to require strict performance by the other party of any
provision of this term sheet.

AGREEMENT; AMENDMENTS. This term sheet (including the Exhibits hereto) set forth
the agreements between the parties with respect to the transactions contemplated
herein and may not be terminated, amended or supplemented except by a writing
signed by all parties hereto. The Agreement will contain other mutually agreed
terms and conditions appropriate for an agreement of this type. The Parties
expressly agree that, until a final Agreement is executed by and between the
parties, the provisions contained in this term sheet shall thoroughly apply to
and remain in full force and effect with respect to the transaction contemplated
herein.

ASSIGNMENT. The Parties may not assign any of its rights or obligations under
this term sheet without the written consent of the other Party.

NOTICES. All notices, claims, demands and other communications under or relating
to this term sheet shall be in writing, and shall be deemed duly given when (i)
personally delivered, (ii) transmitted by telecopy or email, or (iii) received
by certified or registered mail and addressed to the party's address above.

COUNTERPARTS. This term sheet shall be executed in two counterparts, each of
which shall be deemed to be an original and all of which taken together shall
constitute one and the same term sheet.

SEVERABILITY. Any provision of this term sheet which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective

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to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or affecting the validity, enforceability or
legality of such provision in any other jurisdiction.

HEADINGS. Paragraph headings in this term sheet are included herein for
convenience of reference only and shall not constitute a part of this term sheet
for any other purpose.

         IN WITNESS WHEREOF, the Parties have caused this term sheet to be
executed by their duly authorized representatives.

                                                       Sao Paulo, April 1, 2003.

                                        /s/ MILTON CAMARGO
                                        ------------------------------
                                             AOL do Brail Ltda

                  By:b  Milton da Rocha Camargo
                  Title:  President, AOL Brasil Ltda.

                                        /s/ Manuel Ribeiro Filho
                                        ------------------------------
                                               Brasil Telecom

                  By:  Manuel Ribeiro Filho
                  Title: General Director of Brasil Telecom S/A

                  /s/ Carlos Geraldo Campus Magalhaes
                  Carlos Geraldo Campus Magelhaes
                  Director of Human Resources

WITNESSES:

1.____________________________

2. ____________________________

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EXHIBIT A

                             Service Specifications

1.       SPECIFICATIONS

         The Services shall fully conform to the following specifications:

         1.1.     Vendor shall provision end-to-end capacity to the AOL dial
                  termination facility (as definedin 1.6) such that end-to-end
                  available bandwidth is no less than [**] bps per Port at all
                  times.

         1.2.     The number of Ports per DS-3 or equivalent circuit connecting
                  the network backbone to any AOL dial termination facility
                  shall not exceed [**] at [**]bps per Port (and lower numbers
                  at higher bandwidths in proportion to such ratio). For the
                  purpose of this Section, "DS-3" shall be defined as a network
                  circuit with a 45 megabit per second capacity with a
                  utilization no higher than [**] percent ([**]%). AOL shall
                  measure the bits arriving at AOL's dial termination facilities
                  over recurring one-minute intervals.

         1.3.     Any circuit connecting Ports to the network backbone shall be
                  sized at no greater than [**] percent ([**]%) of utilization
                  per individual circuit as measured as an average over
                  recurring [**] minute windows by AOL. Reporting provided by
                  Vendor shall demonstrate Vendor's satisfaction of this
                  requirement.

         1.4.     As of the Effective Date, the Services shall fully support
                  International Telecommunication Union ("ITU") standards for
                  the V.90 protocol as amended by the ITU in September 1998. In
                  addition, the Services shall fully support all successors,
                  upgrades and enhancements to such protocols within
                  commercially reasonable timeframes following their adoption by
                  the ITU. Vendor shall implement ITU standards for the V.92
                  protocol as amended in November, 2000 and July, 2001 on the
                  network on a reasonable timeframe, so that it is available in
                  every location by the time it becomes a market standard in
                  Brazil.

         1.5.     The Services shall fully support and be in conformance with
                  AOL's access methods, access technology, hub architecture, and
                  other access methods that may become available to AOL from
                  time to time. Access methods shall include:

                      (i) L2TP -- Layer 2 tunneling protocol is based on RFC
                      2661 and uses a common realm string to route traffic to
                      AOL. AOL can assign the routable IP address;

                      (ii) PPP-- standard point to point protocol based on RFC
                      1661. Vendor shall provide a unique routable IP address
                      for each session from a pool of IP addresses dedicated to
                      AOL. A common authentication shall be used for each
                      session;

                      (iii) the proprietary AOL P3 protocol -- a proprietary AOL
                      character-oriented protocol using TCP clear or raw mode
                      telnet. The network access system uses a common user
                      identification and password for each session;

                      (iv) TCP/IP;

                      (v) UDP;

         1.6.     Vendor shall provide end-to-end transport and routing for
                  network traffic to the following location:
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                      (i) To a point of physical interconnect with AOL at an
                      AOL-designated "Meet Point" for each Service Area at which
                      Dial-Up Access traffic shall be exchanged by the Parties.
                      The Meet Point shall be Av Morumbi, 8660 - 3rd floor, Sao
                      Paulo - SP.

         1.7.     Vendor, in its network design and topology, shall comply with
                  IETF approved and adopted standards applicable to the access
                  methods described in Section 1.5 above.

         1.8.     If AOL requests changes to Vendor's obligations described in
                  this Article 1, Vendor shall use commercially reasonable
                  efforts to implement such changes as soon as practicable.

2.       TECHNOLOGY

         Vendor shall not at any time simultaneously utilize different access
         technologies (RAS) for any given telephone number. The Parties shall
         mutually agree upon the technology and vendor of choice for the Ports
         and related equipment used for the Services. Vendor will provide AOL
         with at least [**] days prior notice of any changes with respect to the
         Port component providers or any dial-access router provided hereunder
         for Services prior to implementing such changes. Vendor may not
         implement any such changes without prior approval from AOL. In case
         Vendor wishes to use different access technologies (RAS) in any given
         location then Vendor shall provide AOL with [**] telephone number for
         each different access technology used in such location. Vendor agrees
         to use all commercially reasonable efforts to implement, at no charge
         to AOL, any new technology (including any hardware or software
         upgrades) on an expedited basis as requested by AOL; provided, however,
         that if Vendor is unable to implement any material new technology
         requested by AOL, despite using such reasonable efforts within a
         commercially reasonable period of time, then, notwithstanding anything
         herein to the contrary, AOL shall have the right to immediately
         terminate this Term Sheet and/or the Agreement by giving notice to
         Vendor.

3.       ARCHITECTURAL INDEPENDENCE

         In the event that Vendor determines that another Vendor Supplier's
         offerings of interconnect services represent a superior value, or that
         there are other factors which may make another Vendor Supplier's
         offerings of interconnect services preferable, Vendor may switch from a
         current interconnect supplier to such other Vendor Supplier; provided,
         however, that such switch does not adversely affect the Services
         provided hereunder. Vendor shall provide the Services in a manner that
         is consistent with AOL's goal of achieving architectural independence.
         Accordingly, Vendor shall manage (a) all of its Vendor Suppliers of
         network services to minimize the possibility that a single failure
         could impact more than one Vendor Supplier's network, and (b) each
         Vendor Supplier of network services to minimize the possibility that a
         single failure could impact more than one network of such supplier.
         Vendor shall solicit AOL's input prior to the use of a wholesale
         interconnect supplier other than its current supplier to the extent
         such use is permitted under this Article. Without limiting the
         foregoing, Vendor shall design and engineer the network used to provide
         Services to AOL such that there shall be no single point of failure in
         such network at any time that may result in a material adverse effect
         upon the Services.

4.       TELEPHONE NUMBERS

         4.1.     Vendor shall reserve dedicated telephone numbers in each city
                  exclusively for AOL to access the dial-up POPs used in
                  providing the Services. Vendor shall ensure that telephone
                  numbers provided to AOL hereunder remain available for use by
                  AOL at all times. Further, Vendor shall not provide such
                  telephone numbers to any third party without AOL's prior
                  consent.

         4.2.     Each location shall have a different local phone number.

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                                    EXHIBIT B

                                 Service Levels

Vendor shall meet or exceed the [**] for each of the following Service Level
metrics:

1.       CONNECTION SUCCESS (GETTING CONNECTED TO THE AOL SERVICE).

         1.1.     WARDIALER PERCENTAGES (excluding busies) (reporting to be
                  provided daily by AOL) -- This metric measures the percentage
                  of telephone numbers per day dialed by AOL's "war dialer"
                  equipment that result in a failure to connect to an AOL host
                  processor (excluding failures resulting from busy signals). In
                  case of telephone numbers which require the "war dialer" to
                  make long distance calls AOL shall use Vendor's long distance
                  telephone service to dial such calls. Vendor shall make
                  available the facilities and infrastructure for installation
                  of the "war dialer" in a city on Vendor's network to be agreed
                  by the Parties

         1.2.     CALL BLOCKING (reporting to be provided daily by AOL) -- This
                  metric measures the extent to which busy signals or other
                  failures to connect are returned for calls to Ports at times
                  when such Ports are not being utilized.

         1.3.     TRAINING (reporting to be provided daily by Vendor on a per
                  city basis) -- This metric measures the percentage of calls
                  during a day for which the access devices fail to complete
                  handshake and negotiate a communications session.

         1.4.     INEFFECTIVES (reporting to be provided daily by Vendor) --
                  This metric measures the percentage of all calls during a day
                  that are successfully placed to an access device but that are
                  not able to connect to an AOL front-end host.

         1.5.     AOL MEMBER-REPORTED PROBLEMS (reporting to be provided daily
                  by AOL at AOL deems necessary) -- This metric measures the
                  number of PRs reported by AOL members per one million user
                  sessions.

2.       CONNECTION QUALITY (STAYING CONNECTED)

         2.1.     PERCENTAGE OF ABNORMAL DISCONNECTS (reporting to be provided
                  daily by AOL) -- This metric measures the daily percentage of
                  all user sessions that are disconnected without a user logoff
                  sequence.

         2.2.     PACKET LOSS (reporting to be provided daily by AOL) -- This
                  metric measures the daily percentage of all data packets
                  introduced into Vendor's network that are dropped within such
                  network.

         2.3.     LATENCY (reporting to be provided when available by AOL) --
                  This metric measures the time interval required for data to
                  travel between AOL's PC equipment and a Port equipment
                  location.

3.       PROBLEM RESOLUTION

         3.1.     PORT AVAILABILITY (reporting provided daily by Vendor based)
                  -- This metric measures the percentage of time each day that
                  each Port access device is reachable through Vendor's network
                  from AOL's front-end hosts and vice-versa.

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         3.2.     PROBLEM REPORTS (reporting provided monthly by AOL) -- This
                  metric measures the time to resolve problems reported by AOL.

         3.3.     SERVICE DOWN TIME (reporting provided monthly by AOL) -- This
                  metric measures the extent to which the Services are not
                  available for use.

4.       Ability to satisfy provisioning requirements

         4.1.     PORT PLAN -- This metric measures Vendor's ability to meet its
                  Port installation plans.

         4.2.     BACKBONE AND BACKHAUL CAPACITY PLAN -- This metric measures
                  Vendor's timely delivery of reporting requested by AOL.

5.       BLOCKED CALLS

         If AOL detects a busy signal for a telephone number when (according to
         the usage reports submitted by Vendor under this Term Sheet and/or the
         Agreement) not all of the Ports being provided hereunder for such
         telephone number were then in use, Vendor shall correct such "blocked
         call" within [**] hours of AOL's electronic notification to Vendor via
         the opening of a trouble ticket with Vendor's NOC. For each such
         blocked call not corrected within such [**] hour period, Vendor shall
         not charge AOL for the number of Ports that were not being utilized
         when such blocked call occurred for so long as such number of Ports are
         blocked. To the extent that Vendor fails to comply with the preceding
         sentence and charges AOL for such Ports, then in addition to any other
         rights or remedies that AOL may have under this Term Sheet and/or the
         Agreement or under applicable law, AOL may set off against amounts due
         under this Term Sheet and/or the Agreement amount equal to any such
         charges.

6.       REPORTS

         Vendor shall deliver within [**] days of the Effective Date, the
         following reports to AOL-designated representatives (or by email if
         requested by AOL), each in the format designated by AOL and using the
         data inputs and formulae designated by AOL:

                  (i)      Usage Reports

                           (a)      [**] on [**] by [**] (Modem Utilization by
                                    [**]);

                           (b)      Site modem [**]; and

                           (c)      [**] on [**] of [**] calls (P3, PPP and
                                    L2TP);

                  (ii)     [**] on [**], including with respect to [**], and
                           [**] that connect [**] to [**];

                  (iii)    [**] to be defined and mutually agreed by the
                           Parties;

                  (iv)     [**] of the amount of [**] required to [**]

                  (v)      [**] and congestion statistics; and

                  (vi)     [**] as required to [**] client and AOL network [**].

<PAGE>

         (vii)    [**] = [**] containing [**], [**], [**], [**] and [**] of the
                  session [**], session [**]

         (viii)   [**] - report on details of each [**], including [**], [**].

         (ix)     [**] used by [**] ([**] to [**])

         (x)      online [**] by [**] ([**] or similar format)

         AOL may request additional reports, and Vendor shall provide these
         additional reports, or the raw data, subject to technical
         reasonableness.

<PAGE>

                                    EXHIBIT C

                    Provisioning, Acceptance and Cancellation

1.       dial-up access service provisioning and implementation

         1.1.     PROVISIONING COMMITMENT. If and to the extent ordered by AOL,
                  Vendor shall deliver Ports within the notice periods set forth
                  in EXHIBIT F hereto (the "Provisioning Commitment").

         1.2.     AOL FORECAST: AOL will submit to Vendor, on a [**] basis, a
                  forecast of the number of Ports and delivery locations which
                  it will require during the following [**] ([**]) months. The
                  [**] month of such forecast will be AOL Order to Vendor, as
                  described in 1.3, and the [**] months are AOL [**] forecast,
                  not an Order, and shall be used by Vendor only for planning
                  purposes.

         1.3.     ORDER PLACEMENT.

                  (i)      GENERALLY. To order Services, AOL shall submit to
                           Vendor an order for Services (each, an "Order")
                           setting forth the following information (such
                           information, the "Delivery Criteria"):

                           (a)      the total number of Ports that must be
                                    installed

                           (b)      delivery locations for such ports; and

                           (c)      the delivery date(s) upon which, or by
                                    which, such Ports are requested to be
                                    delivered.

                  Each Order shall be clearly marked as such, and shall be
                  delivered by AOL via electronic mail to such individuals
                  designated in writing from time to time by Vendor.

                  (ii)     INITIAL ORDER. AOL hereby orders Ports in accordance
                           with the Delivery Criteria set forth in Schedule E
                           attached hereto (the "Initial Order").

         1.4.     VENDOR ACCEPTANCE OF ORDERS.

                  (i)      INITIAL ORDER. Vendor hereby accepts the Initial
                           Order.

                  (ii)     OTHER ORDERS. Within [**] ([**]) days after receipt
                           of an Order from AOL (other than the Initial Order),
                           Vendor shall notify AOL of its acceptance or
                           rejection of such Order. If Vendor fails to provide
                           AOL with an acceptance or rejection notice within
                           such [**]-day period, then such Order shall be deemed
                           accepted by Vendor as of the last day of such
                           [**]-day period. Notwithstanding the foregoing,
                           Vendor shall accept an Order to the extent that such
                           Order requests Ports corresponding to the
                           Provisioning Commitment.

         1.5.     CANCELLATION OR MODIFICATION OF ORDERS.

                  (i)      Before acceptance or rejection of any Order by
                           Vendor, AOL may rescind or modify (without

<PAGE>

                           liability), in whole or in part in its sole
                           discretion, such Order.

                  (ii)     After acceptance of an Order by Vendor, AOL may
                           cancel or modify such Order in whole or in part at
                           any time before the delivery date; provided that AOL
                           shall reimburse Vendor any incremental Out-of-Pocket
                           Expenses actually incurred as a result of such
                           cancellation or modification. AOL shall have no
                           liability to Vendor for an Order cancelled pursuant
                           to this Subsection (ii) other than payment to Vendor
                           of such Out-of-Pocket Expenses. This Subsection (ii)
                           shall be subject to the other provisions in this Term
                           Sheet and/or the Agreement which give AOL the right
                           to modify or cancel Accepted Orders under certain
                           specified circumstances.

2.       DELIVERY

         2.1.     DELIVERY OBLIGATIONS. Vendor shall deliver Ports corresponding
                  to an Order that is accepted or deemed accepted by Vendor (any
                  such Order, an "Accepted Order") in accordance with the
                  applicable Delivery Criteria and the terms of this Term Sheet
                  and/or the Agreement. To the extent Vendor is able to deliver
                  any Port prior to its designated delivery date (e.g., if a
                  Vendor Supplier of wholesale interconnect services is required
                  by regulation to shorten its delivery dates or if a Vendor
                  customer terminates services or orders thereby creating
                  additional capacity), then Vendor shall notify AOL and at
                  AOL's request, the delivery date for such Port shall be
                  changed to such earlier date upon which Vendor is able to
                  deliver such Port. "Designated Delivery Date" with respect to
                  a Port shall mean the date on which Vendor is obligated to
                  deliver such Port pursuant to this Section 2.1. FAILURE TO
                  DELIVER.

                  (i)      For each Port corresponding to an Accepted Order that
                           Vendor fails to deliver in accordance with the terms
                           of this Term Sheet and/or the Agreement by the
                           corresponding Designated Delivery Date, in addition
                           to any other rights or remedies that AOL may have
                           under this Term Sheet and/or the Agreement or under
                           applicable law, Vendor shall provide AOL with an
                           ongoing daily credit equal to the pro-rated daily
                           Port charges that would have applied to such Port,
                           which credit will cease when such Port is delivered.

                  (ii)     For each [**] ([**]) day period after the Designated
                           Delivery Date that a Port is not delivered in
                           accordance with this Term Sheet and/or the Agreement,
                           in additional to any other rights or remedies that
                           AOL may have under this Term Sheet and/or the
                           Agreement or under applicable law, Vendor shall
                           provide AOL with a lump-sum credit equal to [**]
                           ([**]) days of Port charges for such Ports. For
                           example, for a Port delivered [**] days late, the
                           aggregate late delivery credit pursuant to this
                           Section 2.1 equals [**] days of Port charges, and for
                           a Port delivered [**] days late, the aggregate late
                           delivery credit pursuant to this Section 2.1 equals
                           [**] days of Port charges (i.e., a credit equal to
                           [**] days of Port charges pursuant to Section 2.1(i),
                           plus an additional lump-sum credit equal to [**] days
                           of Port charges pursuant to this Section 2.1(ii).

                  (iii)    If Vendor fails to deliver more than [**] of the
                           Ports corresponding to an Accepted Order within [**]

<PAGE>

                           days after the Designated Delivery Dates for the
                           Ports, then in addition to any other rights or
                           remedies that AOL may have under this Term Sheet
                           and/or the Agreement or under applicable law, AOL may
                           elect to terminate this Term Sheet and/or the
                           Agreement without liability upon notice to Vendor.

         2.2.     CALCULATION OF DELIVERY DATE. Upon delivery of any Port (but
                  no sooner than such delivery), Vendor shall provide to AOL
                  notification of such delivery by e-mail to AOL. For the
                  purposes of this Term Sheet and/or the Agreement, delivery of
                  any Port shall be deemed made upon AOL's receipt of such
                  e-mail from Vendor. Solely for the purposes of Section 2.1 of
                  this EXHIBIT C, if any Port delivered to AOL does not receive
                  Final Acceptance prior to the [**] ([**]) day following such
                  delivery, then such Port shall be deemed not to have been
                  delivered on such delivery date but, instead, shall be deemed
                  to have been delivered on the date on which such Port does
                  receive Final Acceptance.

3.       ACCEPTANCE

         3.1.     ACCEPTANCE TESTING. AOL shall have a period of [**] ([**])
                  business days after delivery of a Port (the "Acceptance Test
                  Period") within which to test such Port (which tests may
                  include using the Port for live traffic). AOL may test Ports
                  by any method AOL deems appropriate in order to determine
                  whether such Ports meet the Acceptance Criteria.

         3.2.     ACCEPTANCE CRITERIA. AOL shall have the option of rejecting a
                  Port if any [**] or more of the following performance
                  thresholds is not met (such thresholds collectively the
                  "Acceptance Criteria"):

                  (i)      at least [**]% of user sessions terminate only with a
                           user-initiated logoff sequence;

                  (ii)     at least [**]% of user calls successfully connect to
                           the Port (data demonstrating compliance with this
                           criterion shall be provided by Vendor for the Ports
                           on a daily basis, and notwithstanding the foregoing,
                           the Acceptance Test Period shall be extended [**]
                           ([**]) business day for each day that AOL does not
                           receive such data commencing with a Port activation
                           or move, as applicable); and

                  (iii)    at least [**]% of user calls that successfully
                           connect to the Port successfully connect to the AOL
                           front-end.
<PAGE>

         3.3.     REJECTION. If a Port fails to meet any of the Acceptance
                  Criteria (each such failure a "Nonconformity"), AOL shall
                  notify Vendor within the Acceptance Test Period by e-mail,
                  specifying the nature of the failure in reasonable detail.
                  Vendor shall remove rejected Ports from service pending
                  further troubleshooting and corrective action. At no charge to
                  AOL, Vendor shall repair, replace or otherwise correct the
                  Nonconformity (and any other problems of which it has
                  knowledge) as soon as reasonably practicable after receiving
                  notice from AOL so that the Ports meet the Acceptance
                  Criteria. Upon completion of such efforts and Vendor's
                  re-delivery of a Port to AOL, AOL shall have an additional
                  Acceptance Test Period to retest the re-delivered Port to
                  determine whether any previously reported Nonconformities have
                  been corrected and if such Port otherwise then meets the
                  Acceptance Criteria. This process shall be repeated as
                  necessary until all Nonconformities are corrected and such
                  Ports meet the Acceptance Criteria. Notwithstanding the
                  foregoing, if after [**] ([**]) attempts for curing a
                  Nonconformity, Vendor has not delivered a Port that meets the
                  Acceptance Criteria, then AOL may cancel (without liability),
                  in whole or in part the portion of the corresponding Accepted
                  Order that does not conform as of a date specified in a notice
                  of cancellation issued by AOL.

         3.4.     FINAL ACCEPTANCE. Ports ordered by AOL shall be deemed to be
                  accepted (such acceptance the "Final Acceptance") only upon
                  the earlier of: (i) receipt by Vendor of notice by AOL
                  certifying that such Ports meet the Acceptance Criteria; or
                  (ii) the expiration of the Acceptance Test Period for such
                  Ports without notice of rejection by AOL. Final Acceptance of
                  Ports shall only occur in accordance with the terms of this
                  Section 3.4.

<PAGE>

                                    EXHIBIT D
                                 Service Charges

           ------------------------- ------------------------
               CUMULATIVE PORTS         PRICE/PORT/MONTH
           ------------------------- ------------------------
           ------------------------- ------------------------
                     [**]                     [**]
           ------------------------- ------------------------
           ------------------------- ------------------------

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

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

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

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

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

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

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

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

            The charges above include all applicable taxes.

<PAGE>

                                    EXHIBIT E
             Service Delivery - Initial Order - Initial Service Area
<TABLE>
<CAPTION>

-------------------------- ------------------------- --------------------------------------------------------
      DELIVERY DATE           INCREMENTAL PORTS                         DELIVERY LOCATION
-------------------------- ------------------------- --------------------------------------------------------
-------------------------- ------------------------- --------------------------------------------------------
<S>                           <C>                                       <C>
       [**], 2002                    [**]                      [**] and surrounding cities ([**])
-------------------------- ------------------------- --------------------------------------------------------
-------------------------- ------------------------- --------------------------------------------------------
       [**], 2002                    [**]                      [**] and surrounding cities ([**])
-------------------------- ------------------------- --------------------------------------------------------
-------------------------- ------------------------- --------------------------------------------------------
       [**], 2002                    [**]                      [**] and surrounding cities ([**])
-------------------------- ------------------------- --------------------------------------------------------
-------------------------- ------------------------- --------------------------------------------------------

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

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

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

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

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

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

</TABLE>

<PAGE>

                                    EXHIBIT F
                             Provisioning Commitment

----------------------------- ------------------------- -----------------------
        SERVICE AREA               MINIMUM PORTS*            DELIVERY DATE
----------------------------- ------------------------- -----------------------
Initial Service Area                    [**]                [**] from order
                                                              acceptance
----------------------------- ------------------------- -----------------------

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

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

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

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

----------------------------- ------------------------- -----------------------
* Additional to the Initial Order.
-------------------------------------------------------------------------------<PAGE>
                                                                    EXHIBIT 10.3

[BRASIL TELECOM LOGO]                                                [AOL LOGO]

              AGREEMENT FOR THE ASSIGNMENT OF ADVERTISING SPACE AND
                 OTHER COVENANTS BETWEEN AOL AND BRASIL TELECOM

Through this instrument, BRASIL TELECOM S.A. with its main place of business in
the SIA/Sul, ASP, Lote "D", Bloco"B", Brasilia/DF, enrolled in the National
Registry of Legal Entities of the Ministry of Finance-CNPJ/MF under n(0)
76.535.764/001-43, in this act represented pursuant to its Bylaws, by its
undersigned representatives, hereinafter simply called "BRT" and on the other
side AOL BRASIL LTDA, with its main place of business at Avenida Industrial, 600
-2(0) andar, in the city of Santo Andre, State of Sao Paulo, enrolled in the
National Registry of Legal Entities of the Ministry of Finance- CNPJ/MF under
n(0) 03.032.579/0001-62, in this act represented pursuant to its Articles of
Association, by its undersigned legal representative, hereinafter simply called
"AOL" and when jointly with "BRT", the "Parties",

WHEREAS AOL is a provider of Internet access and has an exclusive area for its
subscribers'access ("AOL Service");

WHEREAS AOL is the holder of an access portal to the Internet registered under
the domain name WWW.AOL.COM.BR and also of several sites which can be accessed
through the portal (collectively the "PORTAL")

WHEREAS BRT is interested in conveying its brand and goods in the AOL Service
and in the PORTAL;

In witness whereof, the parties enter into the present agreement of Assignment
of Advertising Space ("Agreement"), which shall be governed by the following
clauses and conditions:

FIRST CLAUSE - THE OBJECT

1.1.   The present Agreement aims at setting forth the conditions through which
       BRT shall invest in advertising and marketing, during the period of time
       that this Agreement is in force, through the electronic media conveyed by
       AOL in its Service and Portal.

1.2.   The Parties agree to carry out the present Agreement pursuant to the
       terms and conditions set forth herein, its exhibits and the legislation
       in force.

<PAGE>

   -----------------------------------------------------------------------
          EXHIBIT I            AOL'S LIST OF PRODUCTS AND PRICES
   -----------------------------------------------------------------------

SECOND CLAUSE: PRICE, CONDITIONS AND FORM OF PAYMENT

2.1. BRT shall invest monthly in advertising and marketing in AOL Service and
PORTAL, in accordance with what is described in item 1.1. above, a minimum
amount, taxes included, that shall be monthly agreed upon between the Parties,
duly documented in writing in a document called "Media Plan".

2.2. By virtue of what has been set forth in item 2.1 herein, AOL agrees to
convey BRT's advertising material ("MATERIAL") in the electronic media through
its PORTAL, as well as through AOL Service.

2.3. The MATERIAL conveyance through AOL's PORTAL and Service shall be carried
out in accordance with the Media Plan to be agreed upon by the Parties monthly.

2.4. The Media Plan constitutes the document through which the Parties will
define monthly the specific conditions of the MATERIAL conveyance, such as the
conveyance price, the conveyance period and the form and place of the MATERIAL
exhibition.

2.5. The MATERIAL conveyance shall comply with the same rules and policies that
AOL offers to other advertisers, with the conditions set forth in this Agreement
and shall further comply with the specific terms and conditions set forth in the
Media Plan.

2.6. The payment of the amounts due to AOL for the MATERIAL conveyance shall be
effected in up to [**] days, by BRT, after the attested receipt of the invoice
issued by AOL.

         2.6.1. BRT shall effect the payment of the amounts due to AOL, by force
         of this Agreement, by means of a deposit in the bank current account to
         be supplied by AOL, being that the respective deposit receipts shall
         have the value of proof of payment.

         2.6.2. In the assumption that the payments determined in this clause
         are not made on the agreed date, a [**] fine shall be levied on the
         amount of the due installment, plus interest on arrears of [**] percent
         ([**]%) per [**], calculated PRO RATA DIE.

2.7. The costs related to the creation of the MATERIAL are not included in the
amount set forth in 2.1, neither are the commissions due to the advertising and
marketing agencies, which, in case they are due, shall be BRT's responsibility.

2.8. The Parties shall meet at the end of each [**] month-period to re-assess
the media conveyed and to make any necessary adjustments for the subsequent
months, on the grounds of the report, being that they can even change the
investment conditions established in clause 2.1, through an addendum.

                                       2
<PAGE>

2.9. BRT shall bear all the amounts related to duties, taxes, contributions,
rates, charges of any nature levied on the services set forth in this Agreement
and due pursuant to the law, with no impairment of the obligations of the
Parties to collect taxes, contributions, rates, charges of any nature to the
public treasury, as set forth by the legislation in force. The Parties
straightaway agree to present to the opposing Party, whenever requested, the
respective proof of payment, being each Party responsible for the
indemnifications and compensations for the losses it may eventually cause to the
other Party or to third parties due to non-compliance with of the tax
legislation. For such, AOL shall issue to BRT an invoice containing the amounts
related to taxes levied on the operations set forth in this instrument.

THIRD CLAUSE - ADVERTISING CONVEYANCE IN THE PORTAL

3.1.The space to be assigned by AOL for the MATERIAL conveyance shall comply
with the following:

         (i)      AOL and BRT shall jointly define the channels and formats to
                  be used, as well as the intensity and the conveyance period,
                  in accordance with the specific needs, provided that AOL's
                  space availability is respected.

         (ii)     For the purpose of conveyance, the advertising formats shall
                  comprise the already existing formats, the new ones that may
                  arise, conveying BRT's products and services, provided that
                  this has been agreed upon by the Parties.

         (iii)    BRT, at its own exclusive discretion, shall define the
                  MATERIAL content, and it can even use the space in AOL Service
                  and Portal to convey advertising material of its controlling
                  company or of any company controlled by or which is under
                  BRT's common control, except in the cases of conveyance of
                  advertising material of companies whose products and/or
                  service compete with AOL's.

FOURTH CLAUSE - THE PARTIES' RESPONSIBILITIES.

4.1. AOL and BRT shall appoint their representatives who will be responsible for
the management and implantation of the services set forth in this Agreement.

4.2. AOL is fully responsible for each and every information and services
provided by the PORTAL, by AOL Service and by the sites under its title,
agreeing to free from and to indemnify BRT for any damages arisen from or caused
by the use of the PORTAL, of AOL Service and/or of the said sites, related to
facts, people, features of products and services, among others.

4.3. BRT is responsible for the content of the MATERIAL conveyed by AOL, and it
agrees to exempt AOL from any damage arisen from or caused by such content. BRT
declares that it will comply with all the provisions of the legislation that
regulates consume relationships, inclusive, but not limited to the Consumer
Defense Code, in whatever is concerned with the services and products offered

                                       3
<PAGE>

and/or exhibited in the AOL Service and in the AOL Portal, which are its sole
exclusive responsibility, agreeing to exempt of responsibility and to defend AOL
in any lawsuit, claim or procedure filed by any consumer, as well as to
indemnify AOL for any direct or indirect damages that they may eventually incur
by virtue of the said lawsuits, claims or procedures.

FIFTH CLAUSE - VALIDITY

5.1. The present Agreement shall be in force for a term, counted as of its
execution, being that it can be extended for equal periods in case there is
written information of the interested Party to the other Party with a minimum
advance of days from the end of the Agreement's validity.

SIXTH CLAUSE - TERMINATION

6.1. Any of the Parties can terminate the present Agreement, in the event of
default by the other Party, of any clause or provision of the present Agreement,
and provided that this is notified with a minimum advance of [**] ([**]) days
and it is not remedied in this period, the default Party will automatically be
subject to the payment of a non-compensatory fine, in the amount equivalent to
[**] percent ([**] %) of the total amount of this Agreement, being the present
Agreement terminated independently of any notice, notification or communication
in writing, being that the violating Party shall be subject to the payment of
eventual losses and damages.

6.2. Termination due to Bankruptcy/Insolvency. Any of the Parties can terminate
this Agreement in the event that the other Party (a) fails to perform the
ordinary businesses pertaining to the activities it exercises and that makes the
object of this Agreement unviable; (b) becomes or declares itself insolvent,
bankrupt or requests Chapter 11 reorganization, (c) is the object of any lawsuit
related to its liquidation or insolvency (whether voluntary or involuntary).

6.3. Termination without cause of this Agreement by BRT's initiative is
subject to previous written notification to AOL, with an advanced [**]-day
([**]) term and shall imply the payment of fine to AOL, to be calculated in the
following way: multiplication of (a) the amount of the last invoice paid by BRT
to AOL, on the grounds of this Agreement by (b) the number of the months still
to go until the end of this Agreement. The amount of such a fine shall be paid
in a maximum term of [**] ([**]) days calendar counted as of the end of the
prior notice period. The delay in the payment of the fine shall give rise to the
payment of interest in the average of [**] percent ([**]%) per month, PRO RATA
DIE, calculated as of the payment due until the date of the effective payment
and added of fine on arrears equivalent to [**] percent ([**]%) of the amounts
in arrears.

SEVENTH CLAUSE - CONFIDENTIALITY

7.1. The Parties acknowledge that, during the course of this Agreement, certain
confidential information can be disclosed to the other Party. Through the
present, the Parties agree:

         (i)      to take all the necessary steps to prevent the reproduction or
                  disclosure of confidential information of the other Party, at
                  least in form equivalent to the work they perform to protect

                                       4
<PAGE>

                  their own information of exclusive ownership, during the
                  validity of this agreement and for a period of [**] ([**])
                  years after its end or termination;

         (ii)     to keep the access to such confidential information of the
                  other Party restricted to the smaller possible number of their
                  employees;

         (iii)    not to disclose such information to any third party or to any
                  person except the ones who, due to the nature of their
                  functions, need to know it.

         (iv)     not to make use of said information for their own advantage or
                  for the advantage of third parties;

         (v)      to immediately stop making use of such information in the
                  event of termination, resolution or end of this Agreement and
                  of the agreements arisen from it, informing all its managers,
                  employees, representatives, service providers and others
                  involved, that the confidential information of the other
                  Party's ownership can no longer be used.

         7.1.1. The term "Confidential Information", as used in this Instrument,
         means each and all information disclosed from one Party to the other,
         related to or not related to this Agreement, including its terms and
         conditions, particularly all the knowledge and information, inclusive
         methods, processes, costs spreadsheets, commercial offers,
         technological information, intellectual property, commercial secrets,
         accounting, financial, fiscal and other information, related to the
         activities of the Parties and which constitute their exclusive
         ownership.

7.2. The restrictions mentioned above regarding the use, disclosure of
Confidential Information received by one Party from the other, do not apply to:

         (i)      Information already known by the Receiving Party, with no
                  restrictions regarding subsequent disclosures;

         (ii)     Information lawfully obtained from third parties, with no
                  restrictions regarding subsequent disclosures;

         (iii)    Information independently carried out by the Receiving Party
                  as of and subsequent to the disclosure date, as evidenced by
                  written register;

         (iv)     Information that, at the time when they were received, had
                  already been considered as "public domain"; and

         (v)      Information made available due to judicial order, compliance
                  with the law or regulating norm of the national or foreigner
                  financial market;

                                       5
<PAGE>

EIGHTH CLAUSE - GENERAL PROVISIONS

8.1. The present Agreement and any rights and obligations arisen from it, cannot
be assigned or in any way transferred to third parties, without the previous
express consent of the other Party.

8.2. The Parties immediately agree that there being reciprocal credits,
independently of their origin and their binding to the object of this Agreement,
they can be cleared until their respective limits, being such clearance
processed by means of a notification and consequent consent between the Parties.
Said notification and consent shall be formalized in writing, in detailed
specific way, indicating the credits to be cleared.

8.3. The boards responsible for this Agreement are the following:

         at AOL:

         Interactive Marketing DepartmentAv. Marginal do Rio Pinheiros, 5200 -
         Ed. Philadelphia - Bloco B 2o
         andar Sao Paulo - SP CEP: 05693-000
         Tel:  (11)  3759-7587
         Fax: (11)  3759-7475

         at BRT:

         Commercial Assistant Department
         SIA/Sul - ASP, Lote "D", Bloco "A" - 2(a) andar - Brasilia/DF CEP -
         71.215-000
         Tel: (61) 415-8140
         Fax: (61) 415-1205

8.4. All the understandings between the Parties shall be in writing, except for
eventual oral guidelines occurring due to emergencies, which shall be formalized
by the Parties in a maximum of [**] hours subsequent to the occurrence of the
fact.

8.5. Except for an express provision to the contrary, all the terms and
conditions of the Agreement shall be due independently of notice or judicial or
extra-judicial notifications.

8.6. Tolerance to eventual infractions of the other Party to the conditions set
forth in the Agreement shall have no value as a precedent or renewal or yet as a
renunciation to the rights that the legislation and the Agreement assure to each
Party.

8.7. This Agreement binds the Parties and their successors, at any title.

8.8. Any mail related to this Agreement shall be forwarded to the aforementioned
addresses through a system with receipt notice.

                                       6
<PAGE>

NINTH CLAUSE - JURISDICTION

9.1. The County of Sao Paulo's Court is hereby elected, which will have the
jurisdiction to settle the issues stemming from the execution of the present
agreement, with the exclusion of any other, privileged as it may be.

In witness whereof, the Parties enter into the present Agreement of Assignment
of Advertising Space in two (2) counterparts of equal form and content, each one
being accepted as an original, in the presence of the two witnesses below.

                                                       Sao Paulo, April 1, 2003.

For AOL BRASIL LTDA:

/s/ MILTON CAMARGO
-----------------------------------
By:  Milton da Rocha Camargo
     President, AOL Brasil Ltda.

For BRASIL TELECOM S.A.

/s/ CARLOS GERALDO MAGALHAES                        /s/ MANUEL RIBEIRO FILHO
-----------------------------------                ----------------------------
By:   Carlos Geraldo Campas Magalhaes              By: Manuel Ribeiro Filho
      Director of Human Resources                      General Director, Brasil
                                                       Telecom S/A.

Witnesses:

------------------------------
Name:
Number of Enrollment in the Individual Taxpayers'Registry: [CPF]:______________

-----------------------------
Name:
Number of Enrollment in the Individual Taxpayers'Registry: [CPF]:______________

                                       7
<PAGE>

                                    EXHIBIT I

                        LIST OF AOL'S PRODUCTS AND PRICES

   ---------------------------------------------------------------------
          Product                                     Price
   ---------------------------------------------------------------------
       banner/buttons
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM AOL 468X60                                                  [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM AOL 234X60                                                  [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM AIM                                                         [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM ICQ*                                                        [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Editorial Links                                                 [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
           Pop Ups
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Pop Up for the basis                                            [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
    Regionalized Pop Up                                            [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Pop Up channel                                                  [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Pop Up web                                                      [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
       Newsletters AOL
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM  468X60                                                     [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM  120X60                                                     [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Editorial Links                                                 [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
         AOL Search
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   [**] terms in AOL                                               [**]
   Search
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   [**] terms in AOL                                               [**]
   Search + recommended
   Sites
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
       Other products
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
    Online Research                                                [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
    Customized webcards                                            [**]
   ([**] cards)
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Hot site ([**] pages                                            [**]
   in rainman)
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Slide-show                                                      [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Key word (for [**])                                             [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Chat Tool                                                       [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Messages Board                                                  [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Photograph Gallery                                              [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------

                                       8
<PAGE>

   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
          Easy map
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   CPM  468X60                                                     [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Segmented CPM  468X60                                           [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------
   Layer ([**] month)                                              [**]
   ---------------------------------------------------------------------
   ---------------------------------------------------------------------

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

   * CPM ICQ = US$ [**] (the price in REALS can be altered
   according to the exchange of the agreement's closing date).

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]