1. W3C_Mobile Web Iniciative _ 2008 BRAZILIAN TELECOMMUNICATIONS AGENCY ANATEL – 2008/06/2

2. W3C_Mobile Web Iniciative _ 2008 REGION I RJ, ES, MG, AM, RR, AP, PA, MA, BA, SE, PI, CE, RN, PB, PE, AL. REGION III SP REGION II PR, SC, RS, GO, TO, MS, MT, RO, AC, DF. FIXED AND MOBILE SERVICE REGIONS

3. W3C_Mobile Web Iniciative _ 2008 Total Brazil: 5.560 Municipalities 181.569.056 Inhabitants Região I Região II Região III Fonte: IBGE - 2004 Região III Região II Região I MUNICIPALITIESPOPULATION MUNICIPALITIES/POPULATION

4. W3C_Mobile Web Iniciative _ 2008 GOVERNMENT POLICY PRIVATE ENTERPRISES ANATEL REGULATION OPERATION BRAZILIAN REGULATORY MODEL

5. W3C_Mobile Web Iniciative _ 2008 NATIONAL TELECOMMUNICATIONS AGENCY - ANATEL ANATEL is in charge to manage the Telecommunications services Provide access to all the population Promote Technological and industrial development in a competitive environment Expand and use networks and services Harmonic condition with social development of Brazil

6. W3C_Mobile Web Iniciative _ 2008 ORGANIZATION OF SERVICES PUBLIC REGIME – Fixed Switched Telephone Service – STFC – Fixed Switched Telephone Service – STFC Continuity and Ubiquity PRIVATE REGIME – Personal Mobile Service – SMP – Personal Mobile Service – SMP - Multimedia Communication Service – SCM - Multimedia Communication Service – SCM - Specialized Mobile Service - SME - Specialized Mobile Service - SME Freedom of Prices and Minimum Intervention of the Government VALUE ADDED SERVICES There are not a telecommunications services and are freely explored

7. W3C_Mobile Web Iniciative _ 2008 USER TRAFFIC - CATEGORY B (Megabytes / Users / Month) Data: ITU Demand 2005 - 2020

8. W3C_Mobile Web Iniciative _ 2008 countries mobile access codes Fonte: Merrill Lynch SERVIÇO MÓVEL PESSOAL - SMP (*) Dado realizado de Fevereiro2008, os dados dos demais Países são previstos.

9. W3C_Mobile Web Iniciative _ 2008 Access of SMP

10. W3C_Mobile Web Iniciative _ 2008 ORIGINAL IMT FDD PCS 1800 EUROPE PCS 1900 USA UMTS GSM ADBEFCADBEFC UMTS TDD D SMP C SMP E SMP WLL (C) WLL(E)BANDA A BANDA B BANDA A BANDA WLL (C) WLL(E) D SMP C SMP E SMP WLL TDD IMT FDD GUARD IMT TDD D SMP E SMP Res. 376/314 D SMP E SMP WLL TDD IMT WLL (E) Ext SMP Ext SMP 1.7101.7151.7201.7251.730 1.735 1.740 1.745 1.750 1.755 1.7601.765 1.770 1.775 1.7801.7851.7901.7951.800 1.805 1.810 1.815 1.820 1.825 1.830 1.835 1.840 1.845 1.850 1.855 1.860 1.8651.870 1.875 1.880 1.885 1.890 1.895 1.900 1.905 1.915 1.920 1.925 1.930 1.935 1.940 1.945 1.950 1.955 1.960 1.965 1.970 1.975 1.9801.985 1.990 1.910 2.110 2.1152.120 2.125 2.130 2.135 2.140 2.1452.150 2.155 2.160 2.165 2.170 Ext SMP F SMP G SMP H SMP I SMP IMT TDD Ext SMP WLLWLL WLLWLL UMTS FDD UMTS FDD D SMP E SMP Res. 454 D SMP E SMP WLL (E) Ext SMP Ext SMP Ext SMP Ext SMP TDD Ext SMP WLL (E) LSMPLSMP LSMPLSMP F SMP G SMP H SMP M SMP M SMP Ext SMP Ext SMP WLL TDD J SMP I SMP J SMP SMP Radio frequencies over 1800 MHZ

11. W3C_Mobile Web Iniciative _ 2008 IMT-2000 IMT-2000 D SMP E SMP SITUAÇÃO ANTERIOR Res. 376/314 D SMP E SMP WLL TDD IMT WLL (E) Ext SMP Ext SMP 1.7101.7151.7201.7251.730 1.735 1.740 1.745 1.750 1.755 1.7601.765 1.770 1.775 1.7801.7851.7901.7951.800 1.805 1.810 1.815 1.820 1.825 1.830 1.835 1.840 1.845 1.850 1.855 1.860 1.8651.870 1.875 1.880 1.885 1.890 1.895 1.900 1.905 1.915 1.920 1.925 1.930 1.935 1.940 1.945 1.950 1.955 1.960 1.965 1.970 1.975 1.9801.985 1.990 1.910 2.110 2.1152.120 2.125 2.130 2.135 2.140 2.1452.150 2.155 2.160 2.165 2.170 Ext SMP F SMP G SMP H SMP I SMP IMT TDD Ext SMP WLLWLL WLLWLL D SMP E SMP SITUAÇÃO ATUAL Res. 454 D SMP E SMP WLL (E) Ext SMP Ext SMP Ext SMP Ext SMP TDD Ext SMP WLL (E) LSMPLSMP LSMPLSMP F SMP G SMP H SMP M SMP M SMP Ext SMP Ext SMP WLL TDD J SMP I SMP J SMP IMT 2000

12. W3C_Mobile Web Iniciative _ 2008 BSC A.Bis Interface BTS Mediation Device C or Ku-Band Satellite Teleporto Broadband VSAT Hub (Compartilhamento de tráfego) IP Interface Mediation Device IP Interface A.bis Interface Gerência A.Bis Interface BTS Mediation Device IP Interface Fonte: I-Direct_Star One VSAT Backbone VSAT

13. W3C_Mobile Web Iniciative _ 2008 Pre paid X pos paid (%) % acces 80,66% Pós-Pago Pré-Pago 97.576.507 (80,66%) Pre-Paid 23.403.596 (19,34%) Pos-Paid

14. W3C_Mobile Web Iniciative _ 2008 ANATEL Bidding Process of IMT-2000 BeforeBefore –1811 municipalities without mobile service –2 and 2,5 generation –4 competitors of SMP –Low penetration of broadband services –Positive revenues localities only After –Four players in IMT-2000 –100 % municipalities in 2 years –60% 3G in four years –~US$ 3 billion for license –~US$ 2 billion of negative cash flow (15 years) business plan in municipalities lower than 100 K inhab.

15. W3C_Mobile Web Iniciative _ 2008 Main Results Four players can share the frequency of one SMP in 4.700 municipalitiesFour players can share the frequency of one SMP in 4.700 municipalities One global network in 4.700 municipalitiesOne global network in 4.700 municipalities 2.700 broadband (3G) mobile networks in municipalities lower than 30 K pop.2.700 broadband (3G) mobile networks in municipalities lower than 30 K pop. US$ 2 billion of negative results covered by private enterprises that will build the networksUS$ 2 billion of negative results covered by private enterprises that will build the networks Government reduction in a bidding processGovernment reduction in a bidding process Contribution to cover main citizens with wireless high speed data communication (HSPA)Contribution to cover main citizens with wireless high speed data communication (HSPA)

16. W3C_Mobile Web Iniciative _ 2008 Social Benefits Each of four competitor has the obligation to build a broadband network in 25% of municipalities under 30.000 pop. chosen to have 3GEach of four competitor has the obligation to build a broadband network in 25% of municipalities under 30.000 pop. chosen to have 3G Each user can access all networks to benefit voice and high speed data applications (roaming)Each user can access all networks to benefit voice and high speed data applications (roaming) After 2 years of operation the network must be used by other SMP providers to offer their services (competition)After 2 years of operation the network must be used by other SMP providers to offer their services (competition) Private and State partnership to provide citzenship to all the population in a great amount of investmentPrivate and State partnership to provide citzenship to all the population in a great amount of investment Other iniciatives in a Wimax bidding process (2,5 GHz and 3,5 GHz band) using analogous schemeOther iniciatives in a Wimax bidding process (2,5 GHz and 3,5 GHz band) using analogous scheme

17. W3C_Mobile Web Iniciative _ 2008 Nelson Mitsuo Takayanagi Superintendência de Serviços Privados SAS Q. 06 Bloco E - 8º Andar CEP 70070-940 Brasília D.F. (061) 2312-2380 nelsonm@anatel.gov.br