RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.21
8March 1996
ORGANIZATION(96-0907)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM BRAZIL
Draft Offer onBasic Telecommunications
ThefollowingcommunicationiscirculatedattherequestofBraziltomembersoftheNegotiating
Group onBasic Telecommunications.
_______________
Brazil hereby submits theattached conditional offertotheparticipants oftheNegotiating Group
onBasic Telecommunications.
Theliberalization ofthetelecommunications services, adopted asaprinciple byBrazil, was
consolidated withtheConstitutional Amendment ofAugust 1995, which extended thatprinciple tothe
public telecommunications services aswell.
Fortheprocesstoadvanceeffectively,billshavetobeenactedandthesubsequentcomplementary
regulatory provisions beimplemented.
Inthatregard, afirstbilldealing withtheliberalization ofsome services asmobile cellular
services inthe800MHzband, value-added services andthesupply ofBrazilian space segment capacity,
among others, hasbeensubmitted totheCongress anditisexpected tobeshortly approved. After
itsapproval, itwilltakeaperiod ofabout 4(four) months todevelop thecomplementary regulating
instruments tostarttheimplementation oftheresulting law.
Additionally, theGovernment willsubmit totheCongress during thefirstsemester of1996
anewTelecommunications Actinthefulfilment oftheConstitutional Amendment 'sobligations. This
Actisbeing developed based ontheprinciple thatallservices beprovided, whenever technically feasible,
onacompetitive basis, andwilldeal, among other matters, with theorganisation ofthe
telecommunications services andthecreation ofaregulatory body.
Thisoffercontains commitments which reflect thecurrent regulatory framework ofBrazilian
telecommunications services andsome oftheforthcoming changes expected totakeplace inthevery
short run. Itisconditional andBrazil reserves therighttolistMFN exemptions atanytimeprior
totheconclusion ofthenegotiations onbasic telecommunications. Some orallofthecommitments
undertaken mayberevised orwithdrawn during thepresent negotiations, considering thebilltobe
enacted bytheCongress. Also, Brazil reserves therighttomake technical changes totheoffer and
tocorrect anyerrors, omissions orinaccuracies.S/NGBT/W/12/Add.21
Page2BRAZIL -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
General conditions statement
Commitments undertaken inthisoffer aresubject tothefollowing conditions:
-Each service tobeprovided inBrazil requires alicence tobeobtained through apublic process.
-Licences aregranted onlytoservice providers established according totheBrazilian legislation andwhose head offices andmanagement arelocated inthe
Brazilian territory.
-Thenumber oflicences maybelimited duetotechnical restrictions.
-Thisoffer does notinclude theuseofsatellites fortheprovision oftelecommunications services, other thanthose included incommitments undertaken in
item2.C.o.iii -Supply ofBrazilian space segment capacity.
2.C. TELECOMMUNICATION
SERVICES
Local, domestic long
distance andinternational
services, forpublic use:
a. Voice telephone services
b. Packet-switched data
transmission services(1) Telecommunications services traffic shall
berouted byalicensed Brazilian
operator.(1) NoneBrazil willintroduce into
itsschedule commitments
relating totheprovision
ofpublic
telecommunication
services within twoyears
after theadoption bythe
National Congress ofthe
newTelecommunication
Act.
c. Circuit-switched data
transmission services(2) None (2) None
d. Telex services (3) Unbound (3) Unbound
e. Telegraph services
f. Facsimile services(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.S/NGBT/W/12/Add.21
Page3Modes 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
Local,domesticlongdistance
and international services,
for non-public use, i.e.
(closed usergroups):
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) Telecommunications services traffic shall
berouted byalicensed Brazilian
operator.
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.
The following concept is
applicable:
(Closed user groups isa
group ofjuridical persons
assembled toexercise a
specificandcommon
economic activity which is
notsusceptible forextension
tothepublic generally.S/NGBT/W/12/Add.21
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
Data/message transmission
anddataprocessing
services:
h. Electronic mail
i. Voice mail
j. On-line information and
databaseretrieval
k. Electronic datainterchange
(EDI)(1) Telecommunications services traffic shall
berouted byalicensed Brazilian
operator.
(2) None
(3) These services must besupported by
bearer telecommunications services
provided byalicensed Brazilian operator.(1) None
(2) None
(3) NoneSubject toapproval by
Congress, Brazil may
waive thelicensing
requirements forthese
services (2.C.h. to
2.C.n.).
l. Enhanced/value-added
facsimile services,
including store-and-
forward, store-and-retrieve(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
m. Code andprotocol
conversion
n. On-line information and/or
dataprocessing (including
transaction processing)S/NGBT/W/12/Add.21
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
o. Other services:
(i)Cellular mobile-service
(800 MHz)(1) Telecommunications services traffic shall
berouted byalicensed Brazilian
operator.(1) None
(2) None (2) None
(3) (i)Service istobeprovided ona
duopoly basis ineach designated
market; thelocal telephone company
maybeallowed tohave alicence for
service provision ortoownoneof
thecellular operators.(3) Thenumber offoreign nationals members
ofboard ofdirectors andexecutive
officers mayberestricted.
(ii)Brazilian nationals shall retain not
lessthan51% ofshares withvoting
rights incompanies providing this
service.
(iii)Theparticipation offoreign
governmental entities, including their
representatives, aswellascompanies
under their control mayberestricted.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
(ii)Paging service (1) Telecommunications services traffic shall
berouted byalicensed Brazilian
operator.(1) None
(2) None (2) None
(3) None (3) None
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.S/NGBT/W/12/Add.21
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
(iii)Supply ofBrazilian
space segment capacity(1) Notapplicable
(2) None(1) None
(2) None
Thefollowing concepts are
applicable:
Space segment encompasses
in-orbit satellites andtheir
respective ground control
stations.(3) (i)Brazilian nationals shall retain not
lessthan51% ofshares withvoting
rights incompanies providing these
services.
(ii) Theparticipation offoreign
governmental entities, including
their representatives, aswellas
companies under their control
mayberestricted.(3) Thenumber offoreign nationals members
ofboard ofdirectors andexecutive
officers mayberestricted.
Brazilian space segment is
defined asaspace segment
which utilizes anorbital
position assigned toor
notified byBrazil and
whose ground control
stations arelocated inthe
Brazilian territory.
Space segment capacity
means thefrequency band
allocated inthespace
segment fortheprovision
oftelecommunications
services.(4) Unbound except asindicated inthe
horizontal section(4) Unbound except asindicated inthe
horizontal section.