RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.21/Rev.1
25April 1996
ORGANIZATION(96-1676)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM BRAZIL
Draft Offer onBasic Telecommunications
Revision
ThefollowingcommunicationiscirculatedattherequestofBraziltomembersoftheNegotiating
Group onBasic Telecommunications.
_______________
BrazilherebysubmitsarevisedversionofitsDraftOfferonBasicTelecommunicationssubmitted
on27February 1996 (S/NGBT/W/12/Add.21).
Thisrevised version includes substantial improvements inrelation totheprevious offerinkey
areas, asfollows:
(a) Public telecommunications services
Inorder tomore clearly demonstrate Brazil ’scommitment toopening itspublic
telecommunications market, thephase-in commitment regarding thissector inthedraftoffer
hasbeenstrengthened byspecific reference tobinding commitments inMarket Access and
National Treatment, twoyears aftertheapproval oftheNewTelecommunications Act.Inthis
regard, thephase-in hasbeenincluded intherespective columns, Market Access andNational
Treatment, soastogivealegally binding nature tothisparticular commitment.
Withregard totheregulatory principles inbasic telecommunications, anewphase-in
arrangement hasbeenintroduced totheAdditional Commitments column oftherevised offer,
stating thatBrazil willadopt, twoyears aftertheapproval oftheNewTelecommunications
Act,regulatoryprinciplescomprisingcompetitivesafeguards,interconnection,universalservice,
public availability oflicensing criteria, separation ofregulatory andoperational functions and,
finally, allocation anduseofscarce resources.
(b) Non-public telecommunications services
Anadditional commitment hasbeenmade tomake publicly available theconditions
applicable forinterconnection ofclosed users groups ’networks withPTTNS.S/NGBT/W/12/Add.21/Rev.1
Page2
(c) Analog/Digital Cellular Mobile services.
Therestrictions ontheparticipation offoreign governments orcompanies under their
direct orindirect control inBrazilian companies supplying thisservice havebeensubstantially
alleviated intherevised offer, which nowhasrestrictions onlyconcerning thevoting capital.
Thischange means thattherearenolonger anyrestrictions onownership ofnon-voting capital,
which mayreach 66.6% ofthetotalcapital ofthecompany. Even withregard tothevoting
capital restrictions, participation upto49%byforeign governments orcompanies under their
direct orindirect control maybeallowed, pending legislation.
Withregard tothisservice, anadditional commitment wasincluded toensure theright
ofinterconnection oftheservice supplier withPTTNS, according toconditions thatwillbe
made publicly available.
(d) Satellite telecommunications transport service
Thetextregarding thisservice wascompletely reworded intherevised offer, inorder
tomake itmore clear. Theservice, previously denominated supply ofBrazilian space segment
capacity,isnowcalledsatellitetelecommunicationstransportserviceandisdefinedinthisrevised
offer. Afirstsubstantial improvement hasbeentheextension oftheoffer toinclude access
toforeign satellites under thecross-border mode ofsupply. Secondly, thesame improvement
regarding theparticipation offoreign governments orcompanies under theirdirect orindirect
control inBrazilian companies supplying thisservice, asdescribed forcellular mobile services,
alsoapplies inthiscase.
Thisrevised offerisconditional andBrazil reserves theright tolistMFN exemptions.
Some orallofthecommitments undertaken mayberevised orwithdrawn during thepresent
negotiations. Also, Brazil reserves therighttomake technical changes totheofferandtocorrect
anyerrors, omissions orinaccuracies.S/NGBT/W/12/Add.21/Rev.1
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
Commitments undertaken inthisoffer aresubject tothefollowing general conditions:
- Each service tobesupplied inBrazil requires aspecific governmental license tobeobtained through atransparent, objective andnon-discriminatory process.
- Licenses aregranted onlytoservice suppliers dulyconstituted according totheBrazilian legislation, which requires head office andmanagement located in
theBrazilian territory.
- Duetoscarce resources, such asfrequencies, thenumber oflicenses maybelimited.
- EMBRATEL hasexclusive rights tolinkwithIntelsat andInmarsat.
2.C. TELECOMMUNICATION
SERVICES
Public local, domestic long
distance andinternational
services:
a. Voice telephone services
b. Packet-switched data
transmission services
c. Circuit-switched data
transmission services
d. Telex services
e. Telegraph services(1) None, other than: Traffic shall berouted
through agateway inBrazil operated bya
supplier dulylicensed.
(2) None
(3) Unbound
Note: Brazil willintroduce intoitsschedule
commitments related tothesupply ofpublic
telecommunications services binding the
relevant parts interms ofMarket Access ofthe
New Telecommunications Act,within two
years after itsapproval bytheNational
Congress.(1) None
(2) None
(3) Unbound
Note: Brazil willintroduce intoitsschedule
commitments related tothesupply ofpublic
telecommunications services binding the
relevant parts interms ofNational Treatment
oftheNew Telecommunications Act,within
twoyears after itsapproval bytheNational
Congress.Within twoyears after
theapproval bythe
National Congress ofthe
New Telecommunications
Act,Brazil willintroduce
intoitsschedule
Additional Commitments
onregulatory principles
comprising competitive
safeguards,
interconnection,
universal service, public
availability oflicensing
criteria, separation of
regulatory and
operational functions and
theallocation anduseof
scarce resources.
f. Facsimile services (4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.S/NGBT/W/12/Add.21/Rev.1
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
Non-public local, domestic
longdistance and
international services, for
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) None, other than: Traffic shall berouted
inBrazil using telecommunications
facilities provided byasupplier duly
licensed.
(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) Currently the
regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent
juridical personality
from thesuppliers
ofbasic
telecommunications
services.S/NGBT/W/12/Add.21/Rev.1
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 isa
group ofjuridical persons
thatperforms acommon
specific activity, which is
notsusceptible toextension
tothepublic generally.
Thefollowing condition for
interconnection is
applicable:
Interconnection ofclosed
users groups 'networks with
PTTNS mayberestricted.S/NGBT/W/12/Add.21/Rev.1
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
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(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) Licensing
requirements for
these services
(2.C.h to2.C.n)
maybeeliminated.
(ii) Any interested
supplier ofValue
Added Services will
beensured theuse
ofthePTTNS for
supplying these
services, according
totheapplicable
regulations.
m. Code andprotocol
conversion
n. On-line information and/or
dataprocessing (including
transaction processing)
Thefollowing concept is
applicable:
Value Added Service isa
service thatadds toan
existing telecommunications
service features thatcreate
newactivities related to
access, storage, transfer
andretrieval of
information.S/NGBT/W/12/Add.21/Rev.1
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)(1) None, other than: Traffic shall berouted
through agateway inBrazil operated bya
supplier dulylicensed.(1) None (i) Interconnection with
PTTNS willbe
ensured.
(2) None (2) None (ii) Theconditions
applicable for
interconnection with
PTTNS willbe
made publicly
available.
(3) (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%;(3) None, other than: Thenumber offoreign
nationals ontheboard ofdirectors aswell
asexecutive officers incompanies
supplying thisservice mayberestricted.(iii) Currently the
regulatory functions
areentrusted tothe
Ministry of
Communications of
Brazil, which has
independent
juridical personality
from thesuppliers
ofbasic
telecommunications
services.
(iii)Theparticipation offoreign
governments orcompanies under
their direct orindirect control inthe
voting capital maybeallowed upto
49%.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
Note: TheBrazilian commercial legislation makes adistinction between voting andnon-voting capital. TheLawofCorporations requires thatthevoting capital
shall beatleast 1/3(onethird) ofthetotal capital.S/NGBT/W/12/Add.21/Rev.1
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
(ii)Paging services (1) None, other than: Traffic shall berouted
inBrazil using telecommunications
facilities provided byasupplier duly
licensed.
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.Currently theregulatory
functions areentrusted to
theMinistry of
Communications of
Brazil, which has
independent juridical
personality from the
suppliers ofbasic
telecommunications
services.
(iii)Satellite
telecommunications
transport service.(1) None, other than:
(i)Thesupply ofservice requires
previous coordination withBrazil of
satellites ’orbital positions and
associated frequencies;1,3 None, other than: Preference willbe
given forthesupply ofservice by
satellites occupying orbital positions
notified byBrazil.
Thefollowing concept is
applicable:
Satellite telecommunications
transport service isa
telecommunications service
which, bytheuseof
geostationary orbit satellites
(GSO), provides satellite
space segment facilities to
thesuppliers of
telecommunications services
viasatellite.(ii)thesupplier oftheservice must have
abranch orarepresentative office in
Brazil, legally responsible forthe
contracts withservice users .
(2) None
(3) None, other than:
(i)Service shall besupplied bysatellites
which occupy orbital positions
notified byBrazil andtheir
respective ground control stations
shall belocated intheBrazilian
territory;(2) None
(3) None, other than: Thenumber of
foreign nationals ontheboard ofdirectors
aswellasexecutive officers incompanies
supplying thisservice mayberestricted.S/NGBT/W/12/Add.21/Rev.1
Page9Modes 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 condition is
applicable:
Satellite telecommunications
transport service shall be
supplied onlytosuppliers
oftelecommunications
services dulylicensed.(ii)Direct andindirect participation of
foreign investment inthevoting
capital islimited to49%;
(iii)Theparticipation offoreign
governments orcompanies under
their direct orindirect control inthe
voting capital maybeallowed upto
49%.
(4) Unbound except asindicated inthe
horizontal section(4) Unbound except asindicated inthe
horizontal section.
Note: TheBrazilian commercial legislation makes adistinction between voting andnon-voting capital. TheLawofCorporations requires thatthevoting capital shall
beatleast 1/3(onethird) ofthetotalcapital.