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1 "The satellites as national integration agents Globalization" TELEMAR 1º SatLabs DVB_RCS Symposium September

2 1.TELEMAR Greatest telecommunications carrier in South America Performing in 16 states 5.4 million Km 2 extension 64% of National territory 39% of Brazilian Gross Internal Product 92 million inhabitants, 55% of the Brazilian Population 17.3 million fixed terminals implanted, 38% of total installed in Brazil (115% increment since privatization) 662 thousand TUPs in service, 52% of total installed in Brazil (169% increment since privatization) R$ 23.0 billion invested since privatization 2

3 General Plan of Globalization Goals- PGMU (Decree of May ) - 3

4 General Plan of Globalization Goals- PGMU (Decree of May ) Major Goals for Article 4 - IIb: implant the Fixed Switched Telephone Service, with individual accesses, in all localities having more than six-hundred inhabitants until Dec/31/2003 -Article 12-III: Every locality not served yet by the Fixed Switched Telephone Service shall dispose of at least of one Public Use Telephone in location accessible 24 hours per day, with capacity to originate and to receive national and international long distance calls, at all localities having more than three-hundred inhabitants 4 until Dec/31/2003

having more than six-hundred inhabitants until Dec/31/2003 -Article 12-III: Every locality not served yet by the Fixed Switched Telephone Service shall

5 Increment to Number of Terminals By the tome of privatization, the Company had Increment 8,057,173 terminals In December 2000, the Company had 59 % 12,794,084 terminals In July 2004, this number reached 35 % 17,282,093 terminals 17,282 thousand terminals installed = 38% of total installed in Brazil 115% Increment since privatization 5

terminals In July 2004, this number reached 35 % 17,282,093 terminals 17,282

6 Increment to Number of Public Use Telephones (TUPs) By the tome of privatization, the Company had Increment In December 2000, the Company had 246,494 public telephones 428,334 public telephones 73 % In July 2004, this number reached 55 % 661,763 public telephones 662 thousand TUPs in service = 52% of total in Brazil 169% Increment since privatization 6

428,334 public telephones 73 % In July 2004, this number reached 55 % 661,763 public

7 Localities Served with Globalization Plan of 2001 December 2000 December 2001 Telemar's Localities With no servicing With no servicing Collective servicing (TUP) Expansion Collective servicing (TUP) Individual and collective servicing (TUP) Individual and collective servicing (TUP) 3, ,706 3,581 11,610 7

(TUP) Expansion Collective servicing (TUP) Individual and collective servicing

8 Telemar's Localities - Globalization Localities served in 2004: With Collective Servicing 8,648 With Individual Servicing 8,164 Localities with servicing via satellite 351 Population of 4,500,000 inhabitants serviced 650,000 terminals in service 8

Servicing 8,164 Localities with servicing via satellite 351

9 General Plan of Globalization Goals - PGMU (Decree of May ) Major Goals for Article 4 - IIc: implant the Fixed Switched Telephone Service, with individual accesses, in all as localities having more than threehundred inhabitants until Dec/31/2005 -Article 12-IV: Every locality not yet served by Fixed Switched Telephone Service shall dispose, at least, of one Public Use Telephone installed in a location accessible 24 hours per day, with capacity to originate and to receive national and international long distance calls, at all localities having more than one-hundred 9 inhabitants until Dec/31/2005

having more than threehundred inhabitants until Dec/31/2005 -Article 12-IV: Every locality not yet served by Fixed Switched Telephone Service shall

10 Telemar Localities - Globalization Localities with servicing via satellite: Positive Points Agility on implantation Flexibility for serving new localities Negative Points High-cost of segment Space 10

Agility on implantation Flexibility for serving

11 Localities Survey: Locality Concept POP- definition PGMU / concept IBGE => It is every limited portion of the national territory having a permanent agglomerate of inhabitants, characterized by a set of permanent buildings and adjacent, forming and area continuously built with recognizable streets, or arranged along a transportation way, such as Federal Capital, State Capital, City, Village, Agglomerate and Settlement. The parameter of 50-m or less of distance to each other for a set of buildings is defined in the adjacency concept by IBGE (Methodological Notes IBGE 1-17). 11

recognizable streets, or arranged along a transportation way, such as Federal Capital, State Capital, City, Village, Agglomerate and Settlement.

12 FORMULÁRIO DE INFORMAÇÕES BÁSICAS DA LOCALIDADE Identificação da Localidade: Nome Do Arquivo:.xls Data da visita - Nome da Localidade - Estado - Nome Alternativo - Sigla do Município - Distrito - SCNL - CNL - Longitude Graus Minu Latitude Graus Minu Área [km2] - Hemisfério - SUL NORTE Classificação: LOCALIDADE NÃO LOCALIDADE ASSENTAMENTO (AGROVILA) ALDEIA INDÍGENA VILA POVOADO PROPRIEDADE PARTICULAR PROPRIEDADES RURAIS ÁREA INDÍGENA ASSENTAMENTO RURAL BAIRRO Tributação Dominante: Condições de Terreno do Local: IPTU ITR NENHUMA TERRA FIRME ALAGADIÇO Altura Meio de Acesso ao Local: TERRA ASFALTO AQUÁTICA MISTA AÉRE Distâncias: SEDE DO MUNICÍPIO Distância [km] ou horas SEDE DO DISTRITO Distância [km] ou horas LOCALIDADE MAIS PRÓXIMA COM STFC INDIVIDUAL nome da Localidade/município - distância [km] - 12

Classificação: LOCALIDADE NÃO LOCALIDADE ASSENTAMENTO (AGROVILA) ALDEIA INDÍGENA VILA POVOADO PROPRIEDADE PARTICULAR PROPRIEDADES RURAIS ÁREA INDÍGENA ASSENTAMENTO RURAL BAIRRO Tributação Dominante:

13 Características: ARRUAMENTO RECONHECÍVEL Qtde de Logradouros ESTÁ EM VIA DE LIGAÇÃO FEDERAL ESTADUAL MUNICIPAL AQUÁTICA Mercado : Ocupado Vago Construção Residencial Não Residencial Adjacente Disperso Adjacente Disperso Qtde de habitantes por domicílio - População contada - Caracteristica de Utilização predominante - EVENTUAL PERMANENTE Equipamentos Urbanos : Tipo de Atendimento Telefônico : P.S. Número - STFC INDIVIDUAL Terminal Central : T.P. T.P. SEM FIO Número - Número - EMBRATEL EMBRATEL MUDA COBERTURA CELULAR Operadoras: LOCAL DISTANTE Outros Serviços Básicos : TRANSPORTE COLETIVO URBANO REGULAR DISTRIBUIÇÃO COLETIVA DE ÁGUA REDE DE ESGOTOS ENERGIA ELÉTRICA Energia Elétrica 24 horas? SIM Fornecedor: Fornecedor: Fornecedor: NÃO TEMPLOS RELIGIOSOS Quantidade Pavimentação : Municipal Estadual Federal Particular SIM NÃO MISTA Unidades de Saúde Rede Postos Hospitais Clinicas Consultórios Outros Pré-escola Unidades de Ensino Ensino Fundamental 1 a /4 a 5 a /8 a 2 o Grau Outros Observações Adicionais : Executante do levantamento: Nome do contato do local: Empresa: TELEMAR - AL 13

14 14

15 PGMU TELEMAR

16 Amazonas Satellite Launching on Aug COMMERCIAL OPERATION C-BAND/KU Sep Amazonas Satellite (positioned at 61 W). 16

17 C-Band Telemar Satellite Municipalities Population 4,500, ,000 Terminals in Service 17

18 C-Band Telemar Satellite Transport Network 5 Payphones 13 Remote 12 Payphones 11 Remote 2 VSat BVA 5 VSat MCP SLS FLA 5 Hub Stations 4 VSat 114 Remote MNS 41 Payphones BLM 6 Payphones 119 Remote 13 Remote SDR 325 Payphones 21 Payphones 309 Remote Stations 421 Payphones Stations Satellite Network Topology 07/21/2004 SDR 10 Remote 30 Remote 11 Vsat Stations Legend Voice Payphone Payphone Management Data Call Center RJO 8 Remote 750 Stations to be migrated 18

Payphones 309 Remote Stations 421 Payphones Stations Satellite Network Topology 07/21/2004 SDR 10 Remote 30 Remote

19 C-Band Telemar Satellite Network 2005 Satellite Network Geographic Distribution Regional (Telemar) Branch Office (State) Qty. Ground Stations Percentage Netw ork Rio Rio de Janeiro 3 0,40% Minas Minas Gerais 5 0,67% Espirito Santo 0 0,00% Bahia 59 7,87% Bahia Alagoas 0 0,00% Sergipe 0 0,00% Pernambuco 1 0,13% Pernam buco Paraiba 0 0,00% Rio Grande do Norte 0 0,00% Ceará ,47% Piaui 0 0,00% Maranhão 14 1,87% Ceará Pará ,47% Amazonas ,47% Roraima 19 2,53% Amapa 31 4,13% Total ,00% Project Focus Area 19

Bahia Alagoas 0 0,00% Sergipe 0 0,00% Pernambuco 1 0,13% Pernam buco Paraiba 0 0,00% Rio Grande do Norte 0 0,00% Ceará 326 43,47%

20 C-Band occupied in Amazonas Satellite Today, Telemar has 709 MHz contracted C-band in the Amazonas satellite, wich corresponds to MHz TPD, with a forecast to contract 2 TPD more until the end of

satellite, wich corresponds to 13 54 MHz TPD, with a

21 Telemar PGMU vision Localities are distributed over 16 Brazilian states. Most population within these areas is D/E social class. Expectancy of low service demand for individual access. 21

22 KU-Band Satellite Network Topology PGMU 2005 VSAT RL U VSA RL T U AMAZONAS KU-Band RLU VSAT VSAT RL U VSAT RL U RL U VSAT RLU VSAT VSAT RL U RLU VSAT RLU VSAT VSA RL T U SDR RLU VSAT 22 RJO

23 PGMU Topology NGN Solution Satellite SITE 1 SITE 2 Remote Localities RLU H.248 Softswitch Softswitch Management RLU + VSAT H.248 Hub RLU RLU + VSAT H.248 Ethernet Ethernet Ethernet Existing IP Network Telemar H.248 H.248 RLU RLU + VSAT Trunk Gateway PSTN TELEMAR 23

24 PGMU Equipment CONTROL = Network segment, either existing or not, responsible for functions of operation, maintenance, switching and interfaces to networks. It could be a transit telephone switch of any hyerarchical class, softswitch,ccc, etc. TRANSPORT = Network segment responsible for connecting the Control to Access Element. For example: radio-loops, physical line, satellite, etc., are part of this network segment all interfaces necessary for interconnecting this segment to the access element and the control element, such as flexible MUX, signaling converters, etc. ACCES ELEMENT = Network segment that has interface to the Access Network, and it could be the FX/Z interface of a radio/mux, compact telephone switch, ETA, IAD, etc. ACCESS NETWORK = Network segment that interconnects the access element to the access network distribution box to be installed next to it and, therefore, not characterizing user network. The servicing terminates at this distribution box, and the F.E. wire will be for user servicing to me executed bt TELEMAR itself. 24

25 Number of Individual and Community Terminals Part UF Number of community sites (A) Number of individual sites (B) Single-channel Radio VSAT I AL PB PE RN BA SE II ES MG RJ III CE MA PI AM AP 25 9 Total PA RR

26 PGMU Topology NGN Solution RLU DVB-RCS SOFTSWITCH RxTx site A H.248 RLU RxTx site B RLU MGW RxTx site N STP SS7 PSTN Region n 26

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