ANATEL PUBLIC BIDDING

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Barreto Ferreira e Brancher

ANATEL PUBLIC BIDDING

USE OF RADIOFREQUENCIES IN THE 1,800 MHz, 1,900 MHz, and 2,500 MHz BANDS

The National Telecommunications Agency, Anatel, published in the Federal Executive Official Gazette of November 09, 2015, an Invitation to Bid for Authorizations to Use Radiofrequencies in the 1,800 MHz, 1,900 MHz, and 2,500 MHz Bands, with the possibility of grant of the Personal Mobile Service – SMP, of the Multimedia Communication Service – SCM, and/or of the Private Limited Service – SLP.

Such Bidding aims at meeting Administrative Ruling 275/2013 of the Ministry of Communications, which lays down policies for offering radiofrequency bands to provide access to broad band internet by small-sized providers of telecommunications services and by new competitors. Accordingly, so as to motivate such providers to participate, there will be a possibility to acquire lots at local level in the 1,800 MHz, 1,900 MHz, and 2,500 MHz bands, and the majority of the almost nine thousand municipal lots have average prices lower than R$ 10 thousand, payment terms being special with possibilities of up to ten installments at low rates, in addition to a grace period of 36 months.

The lots are described in Annex II-A of the Invitation to Bid and divided as follows:

·       Type A (lots A-1 to D-61) – authorization for use of Radiofrequencies on a primary block character in the Sub-band of 1,800 MHz Radiofrequencies, ruled in the Annex to Resolution No. 454/2006, in the Provider Areas set out in ANNEX I to the Call for Bidding;

·       Type B (lots E-2 to E-81) – authorization for use of Radiofrequencies on a primary character in the Sub-band of 2,500 MHz Radiofrequencies, FDD, ruled in the Annex to Resolution No. 544/2010, in the Provider Areas set out in ANNEX I to the Call for Bidding;

·       Type C (lots referring to items F, G, H, and I) – authorization for use of Radiofrequencies on a primary character in the Sub-bands of 1,900 MHz and 2,500 MHz Radiofrequencies, both of them TDD, ruled in the Annexes to Resolutions Nos. 454/2006 and 544/2010, respectively, in the Provider Areas set out in ANNEX I to the Call for Bidding.

Participation in this public bidding will be permitted to companies organized under the Brazilian law having their head office and management in Brazil, where the majority of voting shares are owned by natural persons residing in Brazil or by companies incorporated under Brazilian law, with head office and management in Brazil, as provided under Art. 1 of Decree No. 2,617/1998, and which have among their objects the operation of telecommunications service, individually or jointly, or by those which, even the foreign ones, failing to meet these requirements, will undertake by declaration to adapt themselves or incorporate a company with the adequate characteristics in compliance with the requirements set out in the Invitation to Bid, prior to the execution of the Authorization instrument.

The Authorization will be granted for the period of fifteen (15) years extendable solely once for valuable consideration for an equal period of time.

The Documents of Identification and Good Fiscal Standing , the Price Biddings, and the Qualification Documentation will be submitted on December 10, 2015 at ten o’clock (10:00 am) in the Auditorium of Espaço Cultural Renato Guerreiro - Anatel, situated at Bloco C, Quadra 06, Setor de Autarquias Sul, in Brasília, DF.

Further information on the Anatel’s Invitation to Bid for Use of Radiofrequencies in the 1,800 MHz, 1,900 MHz, and 2,500 MHz Bands may be requested to the professionals of the Regulatory Law Group of BKBG, by e-mailing to regulatorio@bkbg.com.br or telephoning to +55 11 3897-0300.

The information contained in this BKBG Release is merely informative and should not be considered a legal opinion.