RESTRICTED
WORLD TRADE S/GBT/W/1/Add.28
12February 1997
ORGANIZATION(97-0568)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM BRAZIL
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofBrazil tomembers oftheGroup
onBasic Telecommunications.
_______________
Brazil hereby submits arevised version ofitsDraft Offer onBasic Telecommunications, which
includes substantial improvements inrelation totheprevious offer, submitted on25April 1996
(S/NGBT/W/12/Add.21/Rev.1) inkeyareas, asfollows:
(a) Thehorizontal section oftherevised offernowclearly indicates theframework ofthe
Brazilian national policy ontheuseofbothBrazilian andforeign satellites, establishing
afewanduniversal conditions toattain faircompetition. Therationale forthis
modification istomake clear thatmarket access isallowed, onanMFN basis, for
satellitesoccupyingorbitalpositionsnotifiedbyothercountries.Inthisrespect,Brazilian
satellites havetobeusedonlywhen theyoffer better orequivalent conditions.
(b) Forpublic services, Brazil isoffering asignificant improvement ofthe"phase-in
arrangement". Theprevious offerestablished a2-year period, aftertheenactment of
thepresent draftGeneral Telecommunications Law, fortheintroduction ofliberalizing
commitments related tothesupply ofpublic telecommunications services. Brazil is
nowoffering toinclude thenewcommitments initsschedule nolaterthanoneyear
aftertheenactment oftheLaw.
(c) Following thetendency nottodiscriminate between technologies forthesupply of
services, Brazil hasworked tomake itsoffer astechnologically neutral aspossible.
Inthisregard, thedraftlegislation stipulates thatpublic andnon-public services for
closed usersgroups canbeprovided using anynetwork technology, onafacilities basis.
(d) Thedefinition ofnon-public services forclosed users groups wasrevised andmade
more precise.
(e) Newwording hasbeenprovided making itclear thatnolicensing requirements are
needed forthesupply ofvalue added services. Such mention, which waspreviously
located inthecolumn ofadditional commitments, isnowpartofthehorizontal section
oftheoffer.S/GBT/W/1/Add.28
Page2
(f) Abetter wording hasbeenprovided tothecommitments associated withcellular mobile
services, making itclear thattheservices inscribed intheschedule aretheones
supported byterrestrial systems, operating inthe800Megahertz frequency band. A
newandadditional commitment inthecommercial presence mode ofsupply hasbeen
included: allrestrictions onforeign capital participation willbedropped forforeign
companies seeking licences asfrom July20th, 1999. Allpossible restrictions tothe
participation offoreign governments orcompanies under theirdirect orindirect control
inthevoting capital ofsuppliers ofthisservice havealsobeenremoved. Moreover,
therevised offerdoesnotcontain anyrestrictions applying tothenumber offoreign
nationals onboards ofdirectors aswellasexecutive officers incompanies supplying
thisService.
(g) Forsatellite telecommunications transport services, allrestrictions ondirect orindirect
foreign capital participation havebeenwithdrawn forcompanies seeking licences as
from20thJuly,1999, inthesame waymentioned before forcellular mobile services.
Likewise, thedraftlegislation excludes allpossible restrictions totheparticipation of
foreign governments orcompanies under theircontrol inthevoting capital ofsuppliers,
aswellastothenumber offoreign nationals onboards ofdirectors orfunctioning as
executive officers. Inaddition, satellite telecommunications transport services have
received anewandrefined definition, making iteasier tounderstand theBrazilian
regulations onthesubject.
Thisrevised offerisconditional onthesatisfactory conclusion ofamultilateral agreement in
basic telecommunications, andBrazil reserves therighttolistMFN exemptions. Some orallofthe
commitments undertaken mayberevised orwithdrawn during thepresent negotiations. Also, Brazil
reserves theright tomake technical changes totheoffer andtocorrect anyerrors, omissions or
inaccuracies.S/GBT/W/1/Add.28
Page3BRAZIL -REVISED DRAFT OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.C. TELECOMMUNICATION SERVICES
Commitments undertaken inthisoffer aresubject tothefollowing general conditions:
(i) Each telecommunications service tobesupplied inBrazil requires aspecific governmental licence tobeobtained through atransparent, objective and
non-discriminatory process. Licences arenotrequired forthesupply ofValue Added Services.
(ii) Licences referred toinitem(i)aregranted onlytojuridical persons dulyconstituted according totheBrazilian legislation, which requires head office and
management located intheBrazilian territory.
(iii) Duetoscarce resources, such asfrequencies, thenumber oflicences maybelimited.
(iv) EMBRATEL hasexclusive rights tolinkwithIntelsat andInmarsat.
(v) Satellites which occupy orbital positions notified byBrazil must beused when evertechnical, operational andcommercial conditions forthesupply ofspace
segment facilities areequivalent tothose offered bysatellites thatoccupy orbital positions notified byother countries.
Public domestic andinternational
services, provided using any
network technology, ona
facilities-basis:
a. Voice telephone services
b. Packet-switched data
transmission services
c. Circuit-switched data
transmission services
d. Telex services
e. Telegraph services
f. Facsimile services(1) None, other than: international traffic
shall berouted through agateway in
Brazil operated byasupplier duly
licensed.
(2) None
(3) Unbound
Note: Within oneyearafter theenactment by
thePresident oftheRepublic, ofthepresent
draft General Telecommunications Law, Brazil
willintroduce intoitsschedule commitments
related tothesupply ofpublic
telecommunications services binding the
relevant parts interms ofMarket Access ofthe
newLaw.(1) None
(2) None
(3) Unbound
Note: Within oneyearafter theenactment by
thePresident oftheRepublic, ofthepresent
draft General Telecommunications Law, Brazil
willintroduce intoitsschedule commitments
related tothesupply ofpublic
telecommunications services binding the
relevant parts interms ofNational Treatment
ofthenewLaw.Within oneyearafter the
enactment bythe
President oftheRepublic,
ofthepresent draft
General
Telecommunications
Law, Brazil will
introduce intoitsschedule
Additional Commitments
onregulatory principles,
asemerging from the
newLaw, comprising
competitive safeguards,
interconnection,
universal service, public
availability oflicensing
criteria, independent
regulator andthe
allocation anduseof
scarce resources.S/GBT/W/1/Add.28
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
Non-public domestic and
international services, for
Closed Users Groups, provided
using anynetwork technology,
onafacilities-basis:
a. Voice telephone services
b. Packet-switched data
transmission services
c. Circuit-switched data
transmission services
d. Telex services
e. Telegraph services
f. Facsimile services
g. Private leased circuit
services(1) None, other than:
network facilities inBrazil shall be
provided byasupplier dulylicensed
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) Theconditions
applicable for
interconnection with
PTTNS willbe
made publicly
available.
(ii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.S/GBT/W/1/Add.28
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing concept is
applicable:
Closed Users Group isagroup
ofnatural orjuridical persons
thatperforms acommon specific
activity, which isnotsusceptible
toextension tothepublic in
general.
Note: Interconnection ofClosed
Users Groups 'networks tothe
PTTNS mayberestricted.
Value Added Services:
h. Electronic mail
i. Voice mail
j. On-line information and
databaseretrieval
k. Electronic datainterchange
(EDI)
l. Enhanced/value-added
facsimile services,
including store-and-
forward, store-and-retrieve
m. Code andprotocol
conversion(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) TheuseofPTTNS
willbeensured to
anysupplier of
Value Added
Services, according
totheapplicable
regulations
(ii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
servicesS/GBT/W/1/Add.28
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
n. On-line information and/or
dataprocessing (including
transaction processing)
Thefollowing concept is
applicable:
Value Added Service is
characterized bytheaddition of
features toatelecommunications
service thatsupports it,thus
creating utilities related tothe
access, storage, presentation,
transfer andretrieval of
information.S/GBT/W/1/Add.28
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
o. Other services:
(i)Analog/Digital Cellular
mobile-service
(800 MHz/terrestrial
systems)
-onafacilities-basis(1) Unbound
(2) None
(3) None, other than:
(i)Service istobeprovided ona
duopoly basis ineach designated
market; thelocal telephone company
maybeallowed tobeoneofthe
service suppliers, directly orthrough
asubsidiary;
(ii)Direct andindirect participation of
foreign investment inthevoting
capital islimited to49%; no
restriction toforeign ownership for
licences tobegranted asfrom
20July1999.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(i) Interconnection with
PTTNS willbe
ensured.
(ii) Thegeneral
conditions for
interconnection with
PTTNS are
publicly available.
(iii) Regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.
(ii)Paging services
(terrestrial systems)
-onafacilities basis(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.Theregulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.S/GBT/W/1/Add.28
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(iii)Satellite
telecommunications
transport service.(1) None, other than:
Thesupplier ofthisservice must have a
branch orarepresentative office in
Brazil, foralllegal effects.(1) None Regulatory functions are
entrusted totheMinistry
ofCommunications of
Brazil, which has
independent legal
personality from the
suppliers of
telecommunications
services.
Thefollowing concept is
applicable:
Satellite telecommunications
transport service isthesupply of
space segment facilities of
geostationary orbit satellites
(GSO) todulylicensed suppliers
ofservices listed inthis
schedule.
Note: Thesupply ofspace
segment facilities ofsatellites that
occupy orbital positions notified
byother countries iscontingent
upon prior coordination with
Brazil oftheir orbital positions
andassociated frequencies(2) None
(3) None, other than:
Thesupply ofspace segment facilities of
satellites thatoccupy orbital positions
notified byBrazil requires thatthe
satellite control stations belocated inthe
Brazilian territory. Direct andindirect
participation offoreign investment inthe
voting capital islimited to49%; no
restriction toforeign ownership for
licences tobegranted asfrom 20July
1999.
(4) Unbound except asindicated inthe
horizontal section(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.