Global Telecom SA (merged with Telesp Celular SA )

active

Global Telecom Ltd. was awarded a 15-year concession to provide cellular phone services through the B band (800s MHz) in area 5 in April 1997. The area 5 comprised the states of Parana and Santa Catarina. The Brazilian telecommunications market was divided in 10 areas in 1996 in order to assign licenses for cellular phone services. In each area, the B band was assigned to a private consortium through a competitive bidding and the A band was assigned to the state owned company that provided local fixed phone services in the concession area. Tele Celular Sul, the state-owned competitor of Global Telecom, was privatized in July 1998. Global Telecom Ltd. won its license through a competitive bidding when it offered US$ 684.6 million (R$773.92 million) for the license in April 1997 Global Telecom Ltd. was a consortium led by Suzano Quimica Ltd. (30%) and integrated by Inepar Telecom Ltd. (21%), DDI do Brasil Ltda. (30%), and Motorola (14%). The concession contract was signed in April 1998 when the consortium paid 40% of their offering. The 60% remaining has to be paid in three equal installments during the first three years of the concession contract. The company started its commercial operations in December 1998 with a initial investment of US$ 425 million. In January 2001, Telesp Celular (controlled by Portugal Telecom) bought 83% of the capital of Global Telecom from ITX Corporation, Inepar Telecom Ltd. and, DDI do Brasil Ltda. By January 2001, Global Telecom had 493,000 customers. In March 2001 Portugal Telecom acquired through its Brazilian subsidiary, Telesp Celular Participacopes (TCP), 49% of the common shares and 100 percent of the preferred shares of Global Telecom. TCP purchased the stake from holding companies belonging to Japan's KODI, ITX and Inepar. In 2003, after having acquired shares of holding companies and promoted a corporate reestructuring, TCP became the direct owner of 100% of the total capital of Global Telecom. In the same year, the corporate control of TCP was transfered to Brasilcel, a 50/50 joint venture of Portugal Telecom and Telefonica Moviles, created to manage all their mobile operations in Brazil. After the transaciton, Brasilcel became the controller of TCP, which owns 100% of the total capital of Global Telecom. Telesp Since April 2003, Global Telecom and all the operating companies participating in the joint venture have been operating under the brand name "Vivo". (in order to calculate the real value of the licence fee payments, we used a discount rate of 12.7% aa, which is the rate used by the regulatory agency Anatel). 2003 100% 0 30.4 1691 Number of connections (thousands) 2004 100% 0 77 2600 Number of connections (thousands)