1. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Bruno Ramos Manager of Mobile Communications Standards ANATELbramos@anatel.gov.br Multimedia in Mobile Services Evolution of The Regulatory Scenario The Brazilian Situation: Serviço Móvel Pessoal - SMP

2. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Objective To give a briefing vision of the mobile services in BrazilTo give a briefing vision of the mobile services in Brazil To introduce the structure of a new service, SMP, that supports a modern point of view of the RegulatorTo introduce the structure of a new service, SMP, that supports a modern point of view of the Regulator To demonstrate the Regulator idea of mobile services carrying multimedia - Aspects of SMPTo demonstrate the Regulator idea of mobile services carrying multimedia - Aspects of SMP To give the ITU Vision of a 3G Mobile Services: Creation of the SSG IMT-2000 and BeyondTo give the ITU Vision of a 3G Mobile Services: Creation of the SSG IMT-2000 and Beyond To show the Spectrum Allocation that supports 3G ServicesTo show the Spectrum Allocation that supports 3G Services Objective

3. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation Topics

4. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation Mobile Services - Historical Marks in Brazil

5. ANATEL Porto Seguro, Brasil June, 4 th, 2001 ANATEL Beginning of Operation: 1990 - TELERJ; 1991 - TELEBRASÍLIA –Technology: AMPS –RF: 800 MHz (A Band) –Voice October 1995 –Adoption of digital technologies (TDMA e CDMA) 1995 - EC N.º 8 - modification of Brazilian Constitution to introduce the private companies in the Telecommunications Area November 1996 –Regulation for SMC –B Band –10 Areas Mobile Services - Historical Marks in Brazil

6. ANATEL Porto Seguro, Brasil June, 4 th, 2001 July 1997 - Lei 9.472 - LGT –Classification of Services: Public and Private –ANATEL July 1998: Privatization of Fixed and Mobile Companies September 2000 - January 2001 –Serviço Móvel Pessoal - SMP: new service that defines new rules and new radio frequencies for mobile services in Brazil –New regulation for SMP –Supports Multimedia February - March 2001 –New licenses for SMP - 1800 MHz Mobile Services - Historical Marks in Brazil

7. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation SMC and SMP - Companies, Evolution and Market Share

8. ANATEL Porto Seguro, Brasil June, 4 th, 2001 (*) Áreas do SMC Total : R$ 8,12 bilhões Tele Norte Celular Participações S/A Valor: R$ 188 milhões Ágio: 108,89% Tele Centro Oeste Celular Participações S/A Valor: R$ 440 milhões Ágio: 91,3% Tele Sudeste Celular Participações S/A Valor: R$ 1,360 bilhões Ágio: 138,60% Tele Nordeste Celular Participações S/A Valor: R$ 660 milhões Ágio: 193,33% Telemig Celular Participações S/A Valor: R$ 756 milhões Ágio: 228,70% Tele Leste Celular Participações S/A Valor: R$ 428,8 milhões Ágio: 243,04% Telesp Celular Participações S/A Valor: R$ 3,588 bilhões Ágio: 226,18% Tele Celular Sul Participações S/A Valor: R$ 700 milhões Ágio: 204,35% SMC: A Band

9. ANATEL Porto Seguro, Brasil June, 4 th, 2001 NBT S/A Valor: R$ 60 mi Ágio:25,4% Americel S/A Valor: R$ 338 mi Ágio:25,4% TESS S/A Valor: R$ 1,326 bi Ágio: 121,20% BSE S/A Valor: R$ 555 mi Ágio: 141% Maxitel S/A Valor: R$ 520 mi Ágio: 30% Maxitel S/A Valor: R$ 250 mi Ágio: 8,69% BCP S/A Valor: R$ 2,647 bi Ágio: 341,25% Global S/A Valor: R$ 773 mi Ágio: 57% ATL S/A Valor: R$ 1,508 bi Ágio: 201,79% Telet S/A Valor: R$ 334 mi Ágio: 341,25% (*) Áreas do SMC Total : R$ 8,3 bilhões SMC: B Band

10. ANATEL Porto Seguro, Brasil June, 4 th, 2001 REGIÃO I REGIÃO II REGIÃO III Banda D Participante Valor (R$ 1.000) %Ágio TNL PCS 1.102.007 17,23 Banda E Participante Valor (R$ 1.000) %Ágio UNICEL 990.000 5,32 Banda D Participante Valor (R$) %Ágio BLUCEL 543.000 0,56 Banda D Participante Valor (R$ 1.000) %Ágio STARCEL 997.000 40,42 Total : R$ 3,63 bilhões SMP: D and E Bands

11. ANATEL Porto Seguro, Brasil June, 4 th, 2001 (*) Millions SMC and SMP - Companies, Evolution and Market Share

12. ANATEL Porto Seguro, Brasil June, 4 th, 2001 (*) Millions SMC and SMP - Companies, Evolution and Market Share

13. ANATEL Porto Seguro, Brasil June, 4 th, 2001 April, 2001 SMC and SMP - Companies, Evolution and Market Share

14. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation SMP - The structure of a new service

15. ANATEL Porto Seguro, Brasil June, 4 th, 2001 New model for mobile services (SMC -> SMP) Regulator emphasized the service aspects, the user’s point of view -> companies responsibilities: billing -> transparent procedures; no discrimination; publicity Technology neutrality. The companies can use any solution to offer the service (2G, 2,5G, 3G, and Beyond). There is no restriction to integrate new services in the network Besides voice, companies can offer data transmission, short messages, voice mail, multimedia services. Services convergence (mobile, fixed, data, multimedia) SMP - The structure of a new service

16. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation IMT-2000: The ITU Vision

17. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Other IMT-2000 Activities in ITU-T Services (SG 2) Numbering & Identities (SG 2) OAM (SG 4) Security (SG 7) Interworking (SG 13) Speech & Video coding (SG 16) Other IMT-2000 Activities in ITU-T Services (SG 2) Numbering & Identities (SG 2) OAM (SG 4) Security (SG 7) Interworking (SG 13) Speech & Video coding (SG 16) Telecomms. Standards ITU-R SG 8 WP 8F ITU-T SG 11 WP 3/11 Radio Communications Terrestrial Mobile IMT-2000 Radio Aspects IMT-2000 Signalling Req’ts Signaling & Protocols IMT-2000 Standardization Lead SG IMT-2000 IMT-2000: Pre-WTSA

18. ANATEL Porto Seguro, Brasil June, 4 th, 2001 * JQG: Joint Question Group Signaling RequirementsProtocol Choices Functional Architecture Radio Interface Network Interface Radio Interface (L2) Service Control Mobility Management Call/Bearer Control Management (with SG 4) Security (with SG 7) Protocol Groups IMT-2000 Interface & Protocol Specifications WP 3/11 JQGs* Program Manager WPs of SG 11 other ITU-T SGs ITU-R External Fora SG 11 IMT-2000: Pre-WTSA

19. ANATEL Porto Seguro, Brasil June, 4 th, 2001 ITU-T SSG - Special Study Group IMT-2000 and Beyond Reasons for Creation growth of wireless access outstripping traditional access –soon will be over 50% of all subscribers –already the case in some markets explosive growth of the Internet –strong correlation between wireless access and internet usage –leads to “Wireless Internet” multiple forums working on 3G systems –need to promote harmonization and convergence –rapidly increasing importance of globalization SSG IMT-2000 and Beyond

20. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Given significant freedom in conducting its business: –Paperless meetings to maximum extent possible –Reduced meeting notice requirements (one month, electronically) –Reduced contribution submission deadline –All documents to be available on ITU web site –Meeting reports to be made available quickly –May use teleconferences, other means to conduct work A de facto trial of selected reform aspects! Plus has the usual powers of a Study Group: –Create and approve Recommendations –To advise TSAG on effectiveness of new procedures Why this Group is Special

21. ANATEL Porto Seguro, Brasil June, 4 th, 2001 EMPHASIS ON: Collaboration Cooperation Partnering BUT NOT: Duplication of work 3G 2G IP Revolution from subscriber service expectations Evolution from 2G systems Revolution from IP infrastructure and Beyond SSG IMT-2000 and Beyond : Approach

22. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Network Aspects –Wireless internet; –Convergence; –Mobility management; –Mobile multimedia functions; –Internetworking; –Interoperability and Enhancements. Radio Aspects –Network signaling interfaces; –Numbering and identities; – Quality of service; – Network performance; – Security IMT-2000: The ITU Vision

23. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Topics Mobile Services - Historical Marks in BrazilMobile Services - Historical Marks in Brazil SMC and SMP - Companies, Evolution and Market ShareSMC and SMP - Companies, Evolution and Market Share SMP - The structure of a new serviceSMP - The structure of a new service IMT-2000: The ITU VisionIMT-2000: The ITU Vision IMT-2000: Frequency Bands - Spectrum AllocationIMT-2000: Frequency Bands - Spectrum Allocation IMT-2000: Frequency Bands - Spectrum Allocation

24. ANATEL Porto Seguro, Brasil June, 4 th, 2001 25002690 MHz Other uses 1885 2200 MHz20252110 IMT-2000 + 2G (Americas) IMT-2000 1710 2G (Asia & Europe) + other uses 1885 MHz WARC-92 806 960 MHz 1G + 2G (world) ( Regional Basis ) Terrestrial Frequency Bands for IMT-2000

25. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Available Frequency Bands for IMT-2000 in Brazil (Terrestrial) 1700 1800190020002100220023002400250026002700 45 MHz MMDS 30 MHz 15 MHz 30 MHz 10 MHz 140 MHz90 MHz 175 MHz 190 MHz TDD 30 MHz 50 MHz 30 MHz 60 MHz 45 MHz MMDS 30 MHz 15 MHz 30 MHz 10 MHz TDD Satellite

26. ANATEL Porto Seguro, Brasil June, 4 th, 2001170018001900200021002200 F/LR/L 1710-1785 MHz and 1805-1880 MHz Countries with GSM R/LF/L 1850-1990 MHz Chile, Mexico, United States PCS-1900 NO PCS-1900 FIXED DUPLEX I R/L PCS R/L F/L VARIABLE DUPLEX Brazil, Chile, Guatemala, Mexico, Venezuela R/LF/L TDDTDD TDDTDD 1885-2025 MHz and 2110-2200 MHz WARC-92 Europe R/L F/L FIXED DUPLEX II Canada Proposals of Frequency Arrangements Band 1700 - 2200 MHz (ITU-R WP-8F)

27. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Message Under the concept of services convergence are two major points: -the capacity of the network to support new features, like high speed data and multimedia, and -a modern regulatory environment. Both are inseparable and should be achieved by the Regulators and the Industry.

28. ANATEL Porto Seguro, Brasil June, 4 th, 2001 Bruno Ramos Manager of Mobile Communications Standards ANATEL Tel: +55-61-312-2443 email: bramos@anatel.gov.br