Resolution nº 614, of may 28 of 2013

Note: This text does not replace the one published in the Official Gazette on May 31, 2013.

THE BOARD OF DIRECTORS OF THE NATIONAL TELECOMMUNICATIONS AGENCY, pursuant to the powers granted it by article 22 of Law nº 9472, of July 16, 1997, and article 35 of the Regulation of the National Telecommunications Agency, approved by Decree nº 2338, of October 7, 1997,

CONSIDERING the result of the analysis of contributions received arising from Public Consultation nº 45, of August 8, 2011, published in the Official Gazette of August 10, 2011;

CONSIDERING the content of the Records of Proceedings nº 53500.023851/2009 and nº 53500.026406/2009;

CONSIDERING the resolution adopted in its Meeting nº. 698, held on May 23, 2013,

DECIDES:

Article 1. To approve the Regulation of the Multimedia Communication Service, pursuant to Annex I of this Resolution.

Article 2. To amend Annexes I and III of the Regulation for the Charging of Public Pricefor the Right to Explore Telecommunications Services and the Right to Explore Satellite, approved by Resolution nº 386, of November 3, 2004, and amended by Resolutions nº 484, of November 5, 2007, and No. 595, of July 20, 2012, pursuant to the Annex II of this Resolution.

Article 3. To revoke the Annex to Resolution nº 272, of August 9, 2001, published in the Official Gazette of August 10, 2001.

Article 4. To revoke the Annex to Resolution nº 328, of January 29, 2003, published in the Official Gazette of February 3, 2003.

Article 5. To revoke the effects of Resolution nº 190, of November 29, 1999, published in the Official Gazette of November 30, 1999, within twelve months from the date of approval of the Regulation referred to in article 1.

Article 6. To establish that the companies that provide internet connection based on Resolution nº. 190, of November 29, 1999, may be granted to provide Multimedia Communication Services within six months counted from the approval of the Regulation referred to in article 1.

Article 7. The enforceability of the obligations contained in Chapter VI, Title III, on articles 39, 43, 44, 47, 48, 49, 50, 52, and 53, and on Title V of Annex I of this Resolution becomes effective ninety (90) days as of the publication of this Resolution.

Article 8. This Resolution shall be in force as of the date of its publication

JOÃO BATISTA DE REZENDE
Chairman of the Board

ANNEX I TO RESOLUTION Nº 614, OF MAY 28, 2013

REGULATION OF THE MULTIMEDIA COMMUNICATION SERVICE

TITLE I

MISCELLANEOUS

CHAPTER I

PURPOSE AND SCOPE

Article 1. This Regulation aims at governing the conditions for the rendering and fruition of Multimedia Communication Services (SCM).

Article 2. The rendering of SCM is governed by Law nº 9472, of July 16, 1997 (General Telecommunications Law - LGT), by Law nº 8078, of September 11, 1990 (Consumer Defense Code), by Decree nº 6523, of July 31, 2008, by the Regulation of Telecommunications Services, approved by Resolution nº 73, of November 25, 1998, and by other regulations, rules and plans applicable to the service, and the instruments of authorization executed between the ServiceProviders and the National Telecommunications Agency (Anatel) and, especially, by this Regulation.

Article 3. The SCM is a fixed telecommunications service of collective interest, provided nationally and internationally by private entities, that enables the offer of transmission, emission and reception capacity of multimedia information, also allowing the rendering of internet connection, using any means, to Subscribers within a Service Area.

Paragraph 1. The rendering of the SCM does not include the transmission, emission and reception of information of any nature that can configure the rendering of broadcasting services, and of pay-TV or conditional access, as well as the supply of audio and video signals, in an unrestricted and simultaneous manner to Subscribers, according to the conditions provided for in the regulation of such services.

Paragraph 2. In the rendering of the SCM, it is not allowed to offer services that may be characterized as Commuted Fixed Telephone Service intended for public use (STFC), especially as regards the routing of telephone traffic by means of the SCM network, simultaneously originated and finished in the STFC networks.

Paragraph 3. In the rendering of the SCM it is allowed to implement the function of restricted mobility in the conditions provided for in the specific regulation of the use of radiofrequency.

CHAPTER II

DEFINITIONS

Article 4. For the purposes of this Regulation, the following definitions shall apply:

I - Operational Access: access that is active providing services to the user;

II - Service Area: national geographic area where the SCM can be explored pursuant to the conditions pre-established by Anatel;

III - Subscriber: individual or legal entity with contractual relationship with the Service Provider to enjoy the SCM;

IV - Call Centre: department of the SCM Service Provider in charge of receiving claims, requests for information and services, or assisting the Subscriber;

V - Internet Connection: enabling a terminal to send and receive data packets over the Internet, through the assignment or authentication of an IP address;

VI - Group: Individual Service Provider of Telecommunications Services or a group of Telecommunications Services Service Providers that have a control relationship, as controllers, controlled or affiliated companies, by applying the concepts of the Regulation for Verification of Control and Transfer of Control in Companies that Provide Telecommunications Services, approved by Resolution nº 101, of February 4, 1999;

VII - Multimedia Information: audio, video, data, voice and other sounds, images or text signals and other information of any nature.

VIII - Beginning of the commercial operation of the service: regular offer of the service with at least one service agreement executed;

IX - Interconnection: link between functionally compatible telecommunication networks, so that service users of one of the networks may communicate with the service users of the other or access the services available therein;

X - License for Operation of Station: administrative instrument that authorizes the beginning of the operation of an individual station, on behalf of the concessionaire, permissionaire and authorized of telecommunication services and use of radiofrequency.

XI - Joint Offer of Telecommunications Services: rendering of different telecommunications services by the same company or by means of partnership between Service Providers, whose enjoyment is simultaneous and in commercial conditions different from those existing for the individual offer of each service;

XI - Service Plan: document that describes the conditions of the rendering of the service as regards its characteristics, access, maintenance of the right to use, use, and eventual and supplementary services, related prices, its values, and the rules and criteria for its application;

XIII - Service Provider: legal entity that provides the SCM by means of authorization;

XIV - Small-sized Service Provider: SCM Service Provider with up to fifty thousand Operational Accesses;

XVII - Connection Log: set of information relating to the date and time of beginning and end of an Internet connection, its duration and the IP address used by the terminal to send and receive data packets, among other information that allow identifying the access terminal used;

XVIII - Value-Added Service (SVA): activity that adds to a telecommunications service that supports it, and with which it must not be confused, new facilities for accessing, storing, presenting, handling or retrieving information;

XIX - Customer Service: establishment that can be maintained by the Service Provider, in which the Subscriber has access to face-to-face service provided by a person duly qualified to receive, guide, clarify, and to solve any request;

XX - Network Termination: individualized access point of a given telecommunications network; and,

XXI - Speed: multimedia information transmission capacity expressed in bits per second (bps), measured according to criteria established in specific regulation.

TITLE II

SCM CHARACTERISTICS

CHAPTER I

NUMBERING AND INTERCONNECTION

Article 5. The use of numbering resources by the networks that support the rendering of SCM is governed by the Numbering Regulation, approved by Resolution nº 83, of December 30, 1998, and by the Numbering Plan of the SCM.

Article 6. Upon request, the interconnection among SCM support networks and among such networks and the networks of other telecommunications services of collective interest is mandatory, subject to the provisions of the LGT and the General Interconnection Regulation, approved by Resolution nº 410, of July 11, 2005.

CHAPTER II

NETWORKS

Article 8. SCM Service Providers have the right to use the networks or network elements of other collective interest telecommunication Service Providers, in a non-discriminatory manner and at fair and reasonable prices and conditions.

Sole paragraph. SCM Service Providers must enable the use of its networks or network elements to other collective interest telecommunication Service Providers, in a non-discriminatory manner and at fair and reasonable prices and conditions.

TITLE III

AUTHORIZATIONS

CHAPTER I

AUTHORIZATION TO PROVIDE SCM

Article 10. The providing of SCM depends on previous authorization by Anatel, and must be based on the constitutional principles of the economic activity.

Paragraph 1. There is no limit to the number of authorizations to provide SCM, which will be issued for an indeterminate time and against payment, as established in articles 48 and 136 of the LGT.

Paragraph 2. The effectiveness of the authorization will depend on the publication of its extract in the Official Gazette.

Article 11. The Service Area subject matter of the authorization for exploration of SCM will be the domestic territory.

Article 12. Aiming to prevent monopoly, and to promote and preserve fair and ample competition, Anatel can establish restrictions, limits or conditions to companies or groups of companies as to obtaining and transferring SCM authorizations.

Article 13. To be granted an authorization to provide SCM the company must:

I - be set up according to Brazilian laws, with headquarters and administration in Brazil;

II - not be forbidden to bid or to contract with the Public Power; not have been declared incapable or not have been punished, in the two previous years, with the cancellation of a grant, permission or authorization to provide telecommunications services, or the cancellation of the right to use radiofrequencies;

III - have legal and technical qualification to provide the service, as well as economic-financial capacity and tax compliance, and to be compliant with the Social Security; and,

IV - not be, in the same Service Area, or a part thereof, in charge of providing the same kind of service.

Article 14. The legal entity that complies with the conditions provided for in the law and the pertinent regulation can require from Anatel, by means of specific form, authorization to provide SCM, accompanied by technical project prepared according to Annex II of this Regulation.

Sole paragraph. The interested party must present to Anatel the documents relating to the legal qualification, technical qualification, economic-financial qualification, and tax compliance, pursuant to the provisions of Annex I of this Regulation.

CHAPTER II

FORMALIZATION OF THE AUTHORIZATION

Article 15. When the SCM Service Provider is selected by means of bidding procedure, pursuant to the provisions of article 136 of the LGT, combined with its Paragraph 2, the authorization will be formalized by means of the execution of the Instrument, which will become effective upon publication of its extract in the Official Gazette.

Article 16. The following information must be stated in the Instrument of Authorization, among others:

I - authorized service and service area;

II - conditions for issuance of the instrument;

III - rights and duties of the authorized company;

IV - rights and duties of Subscribers;

V - prerogatives of Anatel;

VI - general conditions for exploration of the service;

VII - specific conditions for providing and exploring the service;

VIII - interconnection-related provisions;

IX - compliance with the general rules of protection to the economic order;

X - payment method for the service provided;

XI - transfer-related provisions;

XI - inspection-related provisions;

XIII - sanctions;

XIV - extinction methods and conditions; and

CHAPTER III

EXTINCTION OF AUTHORIZATION TO EXPLORE SCM

Article 17. The authorization to explore SCM may be extinct by means of disfranchisement, forfeiture, lapsing, waiver or annullment , pursuant to the provisions of the LGT.

Paragraph 1. The extinction of the authorization to provide the service will imply the extinction of the authorization to use radiofrequencies for the respective service.

Paragraph 2. The extinction of the authorization to provide the service does not entitle the Service Provider with the right to any indemnity and does not exempt it from the liabilities for the acts practiced during its validity.

CHAPTER IV

AUTHORIZATION TO USE RADIOFREQUENCIES

Article 18. The conditions to grant the authorization, coordination and sharing of use of radiofrequency are established in specific regulation.

CHAPTER V

INSTALLATION AND LICENSING OF THE SYSTEM

Article 19. The deadline for the beginning of the commercial operation of the service, when it depends on its own radio-electric system, cannot exceed eighteen months, counted from the date of publication of the extract of the authorization of use of radiofrequency in the Official Gazette.

Sole paragraph. The deadline referred to in this article may be extended only once, for a maximum of twelve months, if the reasons provided are deemed relevant by Anatel.

Article 20. After the installation of the system is complete, before commencement of the commercial operation, the Service Provider may, in order to test it and adjust it, operate the system on a trial basis for a period of up to ninety days, provided that is makes the registration of the station in the Technical and Administrative Database of Anatel with a minimum advance of five working days.

Paragraph 1. The experimental character of the operation does not exempt the Service Provider from its responsibilities, especially as regards the emission of interferences in the maritime and aeronautical radio navigation bands.

Paragraph 2. The station operating under experimental character cannot be used for commercial exploration of the service while the experiments last.

Article 21. Before beginning the commercial operation of a Station, the Service Provider must obtain from Anatel the Station Operating License, except for the cases of waiver of licensing provided for in specific regulation.

Sole paragraph. The Station Operating License will be supplied to the Service Provider of the service, by means of proof of payment of the Installation Supervision Fee (TFI) and, when applicable, of the Public Price for the Right to Use Radiofrequencies (PPDUR), pursuant to the regulation.

Article 22. After the Licenses to Operate Station are issued, the Service Provider shall – by means of the Technical and Administrative Database of Anatel – inform in advance any changes to a technical characteristic existing in the approved projects, including the deactivation of stations.

Paragraph 1. Any alteration in technical characteristics that implies modification in the operation of the stations or change of address requires the issuance of a new Station Operating License and payment of TFI.

Paragraph 2. In the event the alteration referred to in the head of this article involves changes to the conditions of use of radiofrequencies, such alteration will depend on previous consent by Anatel.

Article 23. The documents listed below must remain under the authorized party’s responsibility, and must be presented to Anatel whenever requested:

I - Technical Term of Responsibility, duly paid, regarding the installation or alteration of station; and,

II - Installation Responsibility Agreement certifying that the installations correspond to the technical characteristics registered in the Technical and Administrative Database of Anatel.

Sole paragraph. The abovementioned documents must be signed by professional enabled by the Regional Council of Engineering, Architecture and Agronomy that has the competence to undertake technical activities in the telecommunications area.

Article 24. Upon installation of the station, it is incumbent upon the Service Provider:

I - to observe the municipal and other legal requirements, as to the constructions, installation and maintenance of towers and antennas, as well as the installation and maintenance of physical lines in public areas;

II - to assure that the installation of its stations is in compliance with the pertinent regulation; and,

III - to obtain the consignment of the necessary radiofrequency, in the event it does not use only confined or third parties means.

Article 25. The installation must comply with engineering rules, specifically as regards the compliance with the coordination of radiofrequencies and the non-emission of interferences in radiofrequency bands used for maritime and aeronautical radio navigation.

Article 26. The telecommunications equipment, including the radiant systems, must have certification issued or accepted by the Agency, pursuant to the regulation in force.

Article 27. The Station Operating License must be available at any time to Anatel.

Article 28. The stations must meet the limits of human exposure to electric, magnetic or electromagnetic fields established by the specific regulation.

CHAPTER VI

TRANSFERS

Article 29. The transference of authorization to explore SCM and of the authorization to use radiofrequency related thereto requires previous consent by Anatel.

Article 30. For transfer of authorization of the SCM, the interested party must:

I - meet the requirements compatible with the service to be provided, in relation to technical qualification, economic-financial qualification, legal qualification, and tax compliance, presenting the documents listed under Annex I of this Regulation; and,

II - present a statement signed by its legal representative, subrogating the rights and obligations of the first authorized party.

Article 31. The transfer of authorization can only be carried out after three years from the effective beginning of the commercial operation of the service.

Article 32. The transfer of authorization between companies of the same Group can be accomplished by Anatel at any time, by means of request of the interested parties and in compliance with the provisions of Article 30 of this regulation.

Article 33. All requests for transfer must be supported by the documents listed under Annex III of this Regulation, as the case may be.

Article 34. It must be previously submitted to Anatel any alteration that may be characterized as transfer of control, verified pursuant to the Regulation for Verification of Control and Transfer of Control in Companies Providing Telecommunications Services, approved by Resolution nº 101, of February 4, 1999, when the parties involved in the transaction fall under the conditions provided for in article 88 of Law nº 12529/2001.

Sole paragraph. The approval of the transfer of control will take in consideration the maintenance of the authorization conditions or of other conditions provided for in the regulation, and the Service Provider shall send to the Agency a request informing its corporate structure, the intended operation, and the corporate structure resulting from the operation, in addition to the documents listed in Annexes I and III of this Regulation, as applicable.

Article 35. The cases of transfer of control that do not qualify in the previous article, modifications to corporate name, address of headquarters, and to the shareholders’ agreements that govern the transfers of shares, as well as the right to vote, of SCM Service Providers and its direct and indirect shareholders must be communicated to the Agency, within sixty days from the registration of the acts with the competent agency.

Sole paragraph. The communications referred to in the head of this article must be supported by the documents referred to in Article 3 of Annex III of this Regulation.

TITLE IV

RIGHTS AND DUTIES OF THE SERVICE PROVIDER AND SUBSCRIBERS

CHAPTER I

GENERAL CONDITIONS

Article 36. The Service Provider is liable, before the Subscriber and Anatel, for the exploration and performance of the service.

Paragraph 1. The Service Provider is fully liable for the exploration and execution of the service before the Subscriber, including as regards the correct functioning of the service support network, even if such network is owned by third parties, being the right of recovery assured to it.

Paragraph 2. The Service Provider’s liability before the Agency also encompasses the correct functioning of the service support network, including when such networks are owned by third parties.

Article 37. The SCM may be provided to individuals and legal entities.

Article 38. The service shall be provided under non-discriminatory conditions to all Subscribers located in the area of provision.

Article 39. The Service Agreement with the Subscriber shall include:

I - the description of its purpose;

II - the rights and obligations of the Service Provider, listed in Chapter III of this Title;

III - the rights and duties of Subscribers, listed in Chapter V of this Title;

IV - the charges on arrears applicable to the Subscriber;

V - the description of the Subscriber service system and the procedure in case of requests or claims;

VI - the number of the Service Provider’s Service Center, the list of addresses for service via mail and online, and the addresses of the Service Provider’s Service Departments, if any, or the indication of how the Subscriber can obtain them;

VII - the event of termination of the SCM Service Agreement and suspension of services by request or insolvency of the Subscriber;

VIII - the description of the procedures to challenge charges;

IX - the criteria for readjustment of prices, which regularity cannot be shorter than twelve months, unless the law otherwise governs;

X - the deadlines for installation and repair;

XI - Anatel’s address, as well as the electronic address of its library, where people will be able to find an integral copy of this Regulation; and,

XI - the telephone of the Call Centre of Anatel.

Sole paragraph. The deadlines listed in item X may be amended by means of request or at the Subscriber’s convenience.

CHAPTER II

QUALITY PARAMETERS

Article 40. The following are quality parameters for SCM, without damage of others that may be defined by Anatel:

I - supply of signals respecting the characteristics established in the regulation;

II - availability of the service at the agreed rates;

III - emission of electromagnetic signals at the levels established in regulation;

IV - disclosure of information to its Subscribers, in an unequivocal and ample manner, with reasonable advance, regarding alterations of prices and conditions of enjoyment of the service;

V - ability to quickly respond to Subscribers’ requests and claims;

VI - number of complaints against the Service Provider; and,

VII - supply of the necessary information to obtain the service and network quality indicators, as well as the economic-financial informations, so as to enable the evaluation of the quality in the service provision.

CHAPTER III

RIGHTS AND OBLIGATIONS OF THE SERVICE PROVIDER

Article 41. In addition to the rights provided for in Law nº 9472, of 1997, in the relevant regulation, and those detailed in the Instrument of Authorization to provide services, the Service Provider is entitled to:

I - use equipment and infrastructure that do not belong to it; and,

II - engage third parties for the development of inherent, accessory or supplementary activities to the service.

Paragraph 1. In any event the Service Provider remains liable before Anatel and the Subscribers for the provisions and performance of the service.

Paragraph 2. The relationship between the Service Provider and third parties are governed by the private law, and there is no relationship whatsoever between such third parties and Anatel.

Article 42. When a Service Provider engages the use of resources that are part of another SCM Service Provider or a Service Provider of any other telecommunication service of collective interest to be part of its own network, such engagement will be characterized as industrial exploration.

Sole paragraph. The resources engaged under the industrial exploration system are deemed as part of the engaging Service Provider’s network.

Article 43. The Service Provider shall maintain a Call Centre for its subscribers, toll free, by means of call from fixed or mobile terminal, twenty-four hours per day, seven days per week.

Sole paragraph. The telephone access for Subscribers to the Call Centre for the Small-sized Service Provider must be accessible through fixed or mobile terminal, at no cost to the Subscriber, at least in the period between eight a.m. and eight p.m., on business days.

Article 44. The Service Provider must provide to Subscriber, before the engagement, information regarding the prices and conditions for enjoyment of the service, among which the situations that can degrade the contracted speed.

Article 45. The Service Provider cannot prevent, by means of agreement or any another means, that the Subscriber be served by other networks or telecommunications services.

Article 46. In the event of interruption or degradation of the quality of the service, the Service Provider must deduct from the subscription the amount proportional to the number of hours or fraction exceeding thirty minutes.

Paragraph 1. The need to interrupt or degrade the service due to maintenance, expansion of network, or similar services must be widely communicated to Subscribers who will be affected, at least one week in advance, and a discount must be granted to the subscription at the rate of 1/30^th per day or a fraction in excess of four hours.

Paragraph 2. The discount shall be made in the next bill to be paid or another means chosen by the Subscriber.

Paragraph 3. Any interruption or degradation of service must be informed to Anatel, within at maximum twenty-four hours, informing the reasons that caused it and the actions developed to normalize the service and to prevent any new interruption.

Paragraph 4. The information provided for in Paragraph 3 must be confirmed by means of the interactive system made available by the Agency.

Article 47. Notwithstanding the applicable legislation, SCM Service Providers have an obligation to:

I - provide adequate service as provided for in the regulation;

II - submit to Anatel, according to the manner and regularity established in the regulation and whenever regularly requested, by means of the interactive system made available by the Agency, all data and information as may be requested for the service, including technical-operational and economic-financial information, especially those related to the number of Subscribers, the coverage area, and the values measured by the ServiceProvider in relation to the parameters and quality indicators;

III - fulfill and to make to fulfill to this Regulation and the too much norms edited for the Anatel;

IV - use only equipment whose certification is issued or accepted by Anatel;

V - provide Anatel agents with free access, at any time, to works, installations, equipment and documents related to the provision of the SCM, including accounting records, kept under confidentiality pursuant to law;

VI - send to the Subscriber, by any means, a copy of the SCM Service Agreement and Service Plan retained;

VII - in compliance with the technical conditions and capabilities available in the networks of ServiceProviders, not to refuse assistance to people whose establishments are located in the Service Provision Area, and not to impose discriminatory conditions, except in cases where the person is in a geographic area not yet served by the network;

VIII - make available to the Subscriber, with minimum antecedence of 30 days, information regarding the changes to prices and conditions to use the service, including modifications concerning the speed and retained service plan;

IX - make available to Subscriber information on features and technical specifications of the terminals, necessary for connecting them to your network, and it's prohibited to refuse the connection of equipment without evidenced technical grounds;

X - provide ready and free information to the Subscriber upon complaint regarding use of the services;

XI - comply with the quality parameters established in the regulations and the agreement with the Subscriber pertaining to the provision of the service and operation of the network;

XII - comply with the laws and technical standards relating to the construction and use of infrastructure;

XIII - keep updated with Anatel, registration details cadastral such as address, identification of officers and managers and corporate structure when appropriate;

XIV - keep subjective conditions, measured by Anatel, throughout the period of operation of the service; and,

XV - keep at the disposal of Anatel and Subscriber complaints records, service requests, and termination requests for a minimum period of two years after such their solution and, upon request by Anatel or by the Subscriber, make available the access to their registration, without charge to the person concerned.

Sole paragraph. The Service Providers must provide a means for the contents of the service agreement and service plan to be accessible to the visually impaired.

Article 48. The Service Provider must provide electronic means and systems required for the Agency's access, without charge, in real time, to all records relating to complaints, service requests, and requests for termination and information, in an appropriate manner to be inspected in relation to the provision of the service.

Article 49. The Service Provider that does not fall under the definition of article 4, item XIV, of this regulation shall receive complaints, service requests and requests for information from subscribers of the service, and respond to them or address them also through the internet.

Article 50. The Service Provider must maintain a record of calls made by Subscribers to the Call Centre for a period of at least one hundred and eighty days from the date of the call.

Sole paragraph. The Small-Sized Service Provider must maintain the record referred to in the main session for at least ninety days.

Article 51. In the event of concrete situation or claim based on price abuse, imposition of unfair contractual terms, discriminatory treatment or practices aimed at eliminating the competition unfairly, Anatel may, after analysis, determine the implementation of appropriate measures, without prejudice to the complainant representing the case before other competent governmental bodies.

Article 52. The Service Provider must ensure confidentiality inherent to telecommunications services and the confidentiality of the data, including connection records, and subscriber information, employing all means and technology required to do so.

Sole paragraph. The Service Provider must make available the data concerning the suspension of telecommunications secrecy to authorities that, in accordance with the law, have jurisdiction to order such information.

Article 53. The Service Provider must maintain the registration data and Connection Records of its subscribers for a period of at least one year.

Article 54. For the retaining of services and acquisition of equipment and materials related to the SCM, the Service Provider undertakes to consider offers from independent – including domestic – suppliers, and base its decisions, with respect to the various offers submitted, in compliance with objective criteria of price, delivery conditions and technical specifications established in the relevant regulations.

Sole paragraph. The procedures of the Regulation on Procedures for Retaining Services and Acquiring Equipment or Materials by Telecommunications Services Providers, approved by Resolution nº 155 of August 16, 1999, as amended by Resolution nº 421 of December 2, 2005, shall apply to the retaining referred to in the head of this article.

Article 55. The Service Provider, in the development of telecommunications activities, shall comply with the regulatory instruments established by competent bodies with a view to safety and protection of the environment.

CHAPTER IV

RIGHTS AND DUTIES OF SUBSCRIBERS

Article 56. The SCM Subscriber is entitled, without prejudice to the provisions of applicable legislation, to:

I - access the service, within the quality standards established in the regulations and in accordance with the conditions offered and contracted;

II - the freedom of choice of Service Provider;

III - non-discriminatory treatment as regards conditions of access and use of the service;

IV - adequate information about their rights and about the conditions of the services provided, in its many applications, additional contracted facilities and their prices;

V - the inviolability and secrecy of its communication, in compliance with the constitutional and legal conditions and assumptions of breach of confidentiality of telecommunications;

VI -the prior knowledge of any change in the conditions of the services provided that may reach it directly or indirectly;

VII - the suspension of the service or termination of the service agreement, at any time and free of charge, except in event of retaining with a stay period, as provided for in article 70 of this Regulation;

VIII - the non-suspension of the service without its request, except in the event of debt directly resulting from its use or for breach of contractual duties established in article 4 of Law nº 9472, of 1997;

IX - the prior knowledge of the conditions of service suspension;

X - the respect of its privacy in the documents for collection and use of its personal data by the Service Provider;

XI - the effective and timely response to its complaints, by the Service Provider;

XII - send its complaints or declarations against the Service Provider to Anatel or consumer protection agencies;

XIII - to compensation for damages caused by the violation of its rights;

XIV - the replacement of its access code, if applicable, in accordance with the regulation;

XV - not to be compelled or induced to purchase goods or equipment that are not in its best interest, as well as to not to be compelled to submit to any condition except in the event of technical issue, to receive the service, in accordance with the regulation;

XVI - having restored the integrity of the rights related to the provision of services, from the payment of its debts, or agreement with the Service Provider, with the immediate deletion of information about the default;

XVII - having blocked, temporarily or permanently, in whole or in part, access to facilities or utilities requested;

XVIII - the continuity of the service for the contractual term;

XIX - receiving the billing document with a breakdown of collected amounts; and,

XX - the access, by electronic means, mail or in person, at its sole discretion and without any charge, to the content of the calls recorded to the Call Centre of the Service Provider, in up to ten days.

Article 57. Obligations of subscribers:

I - to properly use the telecommunications service, equipment and networks;

II - to preserve the assets of the Service Provider and those intended for the use of the general public;

III - to make the payment for the provision of the service, in compliance with the provisions of this regulation;

IV - to provide suitable location and infrastructure necessary for the correct installation and operation of the Service Provider's equipment, if applicable;

V - to only connect to the Service Provider's network terminals with certification issued or accepted by Anatel;

VI - to bring to the attention of the Public Authorities and Service Provider the irregularities of which it may be aware of relating to the provision of the SCM; and,

VII - to indemnify the Service Provider for any and all damage or loss it may have caused, due to violation of legal, regulatory or contractual provision, regardless of any other penalty.

Article 58. The rights and duties provided for in this Regulation do not exclude other rights and duties provided for in Law nº 8078 of September 11, 1990, and Decree nº 6523 of July 31, 2008, as well as in the applicable regulation and service agreements executed with the SCM Subscribers.

CHAPTER V

PUBLIC AND EMERGENCY SERVICESArticle 59. Pursuant to the Telecommunications Services Regulations, the SCM Service Providers must serve with priority the President of the Republic, its Protocol representatives, its retinue and support staff, as well as foreign heads of State when on official visits or travels across the Brazilian territory, making available the necessary resources for their proper communication.

Article 60. It is the duty of SCM Service Providers, after their installation and assigned numbering, to ensure free access to emergency services to its subscribers, according to the regulations.

Article 61. It is the duty of the SCM Service Providers to place at the authorities and civil defense staff disposal, in the case of public calamity, all means, systems and resources that are required in order to give them support or to support the affected populations, according to the regulations.

TITLE V

RULES OF SCM SERVICE PROVIDING

CHAPTER I

GENERAL PROVISIONS

Article 62. The provision of the SCM must be preceded by enrollment, by the Subscriber, to the Service Agreement and one of the Service Plans offered by the Service Provider.

Sole paragraph. The Service Plans may be retained by the interested parties if there are guarantees of service in the Subscriber’s address and in the conditions offered.

Article 63. the Service Plan shall contain, at least, the following characteristics:

I - maximum download and upload speed, available at the engaged address, for the communication flows originated and terminated at the Subscriber's terminal, in compliance with the criteria established in specific regulation;

II - amount of monthly payment and billing criteria; and,

III - rate plan, as applicable.

Paragraph 1. The Service Plan that encompasses a rate plan shall ensure the Subscriber, after full consumption of the contracted rate plan, the continuity of the provision of the service by:

I - additional payment for the excess consumption, maintaining other service provision conditions; or,

II - reduction of the contracted speed, without additional charge for excess consumption.

Paragraph 2. The Service Provider that offers a Service Plan with rate plan must make available to Subscriber a verification system, free and in real time, of the consumption incurred.

Paragraph 3. The SCM Service Provider shall, in its Service Plans and all other documents related to the offers, inform the maximum speed(s), both for download and upload, in a clear and adequate manner, easy to view, as well as all other conditions of use, such as rates, possible reductions of the rated speed(s) and amounts to be charged for the traffic in excess.

Article 64. The SCM Service Provider that offers plans for internet connection by means of a Service Provider of Internet Connection (PSCI) that is part of its Economic Group shall guarantee in all its offers the gratuity for internet connection.

Paragraph 1. Any Service Provider of Internet Connection (PSCI) is ensured the offer to free internet connection referred to in the head of this article under the same conditions of the PSCI which is part of the Economic Group, through the definition of isonomic and non-discriminatory criteria of choice.

Paragraph 2. The requirement referred to in this article is not applied to Small-Sized Service Providers.

Article 65. The SCM Service Provider referred to in article 64 shall publish, separately, the price, even if free, of the internet connection that makes up its Service Plans:

I - in its advertisements;

II - in the invoices sent to Subscribers;

III - in the marketing of the service, both in the agreement and in the description of the existing Plans to clients; and,

IV - in its accounting records.

Article 66. The SCM Service Agreement may be terminated:

I - at the Subscriber's request, at any time and free of charge, except in the event of agreements signed with a period of stay, as provided for in article 70 of this Regulation; or,

II - at the initiative of the Service Provider, in view of evidenced breach of contractual or regulatory obligations by the Subscriber.

Paragraph 1. Disabling the service, resulting from the termination of the SCM Service Agreement, must be completed by the Service Provider within twenty-four hours from its request without charge to the Subscriber. The protocol sequence number, with date and time proving the claim shall be informed immediately.

Paragraph 2. Such termination shall not affect the enforceability of the proportional charges arising from SCM Service Agreement.

Paragraph 3. The Service Provider must allow the request for termination by the Subscriber of the SCM Service Agreement to be made safely, through the Call Center or Service Sector, by registered mail or by any other means defined by it.

Paragraph 4. When the request for termination is made over the Internet, the Service Provider must ensure, by means of a reserved area in its Internet webpage, with easy access, the printing of the copy of the request along with date, time and sequential protocol number, as well as receiving the statement of the request through an e-mail message.

Paragraph 5. When the request for termination is made in the Customer Service, the confirmation of receipt shall be delivered immediately to the Subscriber upon receipt.

Paragraph 6. When the request for termination is made by means of registered mail, the acknowledgment shall be sent in writing within twenty-four hours the Service Provider has received the correspondence, or on the next business day.

Paragraph 7. The termination of the service agreement shall be effective immediately after the consumer's request, even if its technical processing requires a term and is independent on its contractual performance.

Paragraph 8. The procrastination of any request for termination of agreement is deemed as serious offense, punishable in accordance with the regulation.

Article 67. The compliant Subscriber may request the service provider to suspend the service, free of charge, once every 12 months, for the minimum term of thirty days and a maximum of one hundred and twenty days, with the possibility to reestablish, without charge, the service provision at the same address.

Paragraph 1. In the event of suspension provided for in this article it is prohibited to charge any amount regarding the provision of the service.

Paragraph 2. The Subscriber is entitled to request, at any time, the restoration of the service, being prohibited any charge for the exercise of this right.

Paragraph 3. The Service Provider shall meet the request of suspension and reinstatement referred to in this article within twenty-four hours of such request.

CHAPTER II

PRICES CHARGED FROM SUBSCRIBERS

Article 68. The prices of the services are free, but they shall be fair, equitable and non-discriminatory, and may vary in function of technical characteristics, specific costs and facilities and amenities offered to Subscribers.

Paragraph 1. The Service Provider is liable for disseminating and clarifying the public about the values practiced with their Subscribers to provide the SCM.

Paragraph 2. The Service Provider can offer the Subscriber discounts or other advantages, in an isonomic manner, being that the reduction of prices is prohibited if made by subjective criteria and in compliance with the principle of fair competition.

Article 69. Aiming at the preservation of fair equivalence between the provision of the service and its remuneration, the prices of services can be readjusted, in compliance with the indexes and periodicity provided for in the SCM Service Agreement.

CHAPTER III

PERMANENCE TIME

Article 70. The SCM Service Provider can offer benefits to its Subscribers and, on the other hand, require that such Subscribers remain bound to the Provider for a minimum period.

Paragraph 1. The Subscriber can opt-out of the benefit offered by the Service Provider at any time.

Paragraph 2. In the event of waiver of benefits by the Subscriber before the permanence time established in the contractual instrument, a termination fine – fair and reasonable, proportional to the permanence time remaining for the end of time of such deadline, as to the amount of the benefit granted – may be applied, except when the waiver is requested because of noncompliance of the legal or contractual obligationby the Service Provider, which is incumbent upon proving that the Subscriber’s claim is without merits.

Paragraph 3. The maximum permanence time is of twelve months.

Paragraph 4. Information about the permanence to which the Subscriber is submitted, in the event it chooses the benefit granted by the Service Provider, must be explicitly, clearly and unambiguously stated in the instrument referred to in Paragraph 6 of this article.

Paragraph 5. There must always be an option to retain the SCM without benefit, at fair and reasonable prices.

Paragraph 6. The benefits referred to in the head of this article shall be the subject matter of an instrument in separate, executed between the Service Provider and the Subscriber.

Paragraph 7. The Service Provider shall record clearly and explicitly, in the instrument referred to in Paragraph 6 of this article, the amount of the fine in the event of termination for each month of the time of permanence.

Paragraph 8. The instrument referred to in Paragraph 6 of this article shall not be confused with the Agreement or the Service Plan retained by the Subscriber; moreover, it must have a commercial character and be governed by the rules established in Law nº 8078, of 1990, and shall state clearly the deadlines of the benefits as well as the amounts, with their respective form of readjustment.

TITLE VI

ADMINISTRATIVE PENALTIES

Article 71. The SCM Service Provider shall be subject to inspection by Anatel, in compliance with relevant legal and regulatory provisions, and shall, upon request, provide reports about its management, allowing free access to its technical resources and accounting records.

Article 72. The violation of legal and regulatory provisions, as well as of the conditions or commitments associated with the authorization, subject the Service Provider to the penalties established in the regulation.

TITLE VII

FINAL AND TRANSITIONAL PROVISIONS

Article 73. The authorizations to provide Specialized Limited Service in the sub modalities Specialized Network and Specialized Circuit, as well as the authorizations of the Telecommunications Transport Network Service, encompassing the Dedicated Line Service, the Packet-Switched Network Service and the Circuit-Switched Network Service, all of collective interest, may be adapted to the SCM regulatory system, provided that the objective and subjective conditions established herein are complied with by the interested companies.

Paragraph 1. Aiming at the adaptation referred to in the head of this article, the Service Provider shall send to the Agency a request stating its option, accompanied by a statement ensuring the maintenance of the subjective and objective conditions required to obtain the authorization to explore the SCM.

Paragraph 2. The adaptation referred to in the head of this article shall be carried out by ensuring, where appropriate, the right to use radio frequencies for the period remaining of the former instrument of authorization, maintaining the possibility of extension.

Paragraph 3. The service provision area subject matter of the adaptation will be the Brazilian territory.

Article 74. Small-Sized Service Providers with a number of five thousand (5,000) Operational accesses are exempt from the obligations established in Paragraphs 3 and 4 of article 46, item XV and sole paragraph of articles 47, 48, and 50, and item XX of article 56.

Article 75. The Service Providers of Multimedia Communication Service shall respect the neutrality of the network, in accordance with the regulations, pursuant to the law.

Article 76. Anatel is incumbent upon acting to solve omitted cases and disputes arising from the interpretation and application of this Regulation.

Article 77. This Regulation is effective as from the date of its official publication.

ANNEX I

DOCUMENTS NECESSARY TO REQUIRE THE AUTHORIZATION

Article 1. To request the authorization to provide the SCM, the applicant must submit the following documents:

I - legal qualification:

a) service request standard form, duly signed by the applicant's legal representative or attorney-in-fact;

b) qualification of the applicant, indicating its corporate name and trading name, as applicable, the National Corporate Taxpayer Registration number, and the address;

c) qualification of directors or officers, indicating the name, the Individual Taxpayers' registration number and the identity card number issued by the Secretariat of Public Security or equivalent, address, profession and position held in the company;

d) articles of association and its amendments in force, properly recorded or filed in the competent department;

e) in the case of corporations, the ownership of corporate control and election documents of its officers, also required in the case of company that appoints its officers according to the rules of corporations; and,

f) proof of registration in the state or district taxpayers' registrations, regarding its headquarters, business and compatible with the subject matter of the authorization.

II - technical qualification:

a) registration and discharge of the applicant in the Regional Council of Engineering, Architecture and Agronomy in the location of its headquarters, according to Law nº 5194, of December 24, 1966; and,

b) declaration of the legal representative of the applicant or certificate issued emitted by legal entities of public or private law, proving the capacity to perform the relevant activity, as well as the existence of adequate and available technical staff to accomplish the object of the authorization.

III - economic-financial qualification: statement that the company is in good financial standing and that a bankruptcy or composition with creditors request is not made against it.

Article 2. The tax regularity documents listed below shall be presented at the moment of publication of the extract of the Authorization in the Official Gazette.

a) proof of good standing with the Federal, State and Municipal Treasury, with regard to the applicant’s headquarters, or another equivalent, pursuant to the law;

b) proof of good standing regarding the Social Security and Unemployment Severance Fund, demonstrating the good standing regarding the payment of social charges enacted by law; and,

c) proof of good standing for tax purposes before Anatel, encompassing tax and non-tax credits, established in a definitive form, even if the outstanding debt has not been enrolled in the Federal Government’s outstanding debt register or the Cadin.

Sole paragraph. In the case of fines, established as non-tax credits due to Anatel, the Service Provider that fails to pay the penalties imposed by final decision, even if such debt has not been enrolled in the Federal Government’s outstanding debt register or the Cadin, will be deemed as being in an irregular condition.

ANNEX II

TECHNICAL PROJECT

Article 1. The Technical Project, prepared by the applicant, must contain at least the following information:

a) description of the service to be provided including the planned applications;

b) intended radiofrequencies, as applicable;

c) estimated interconnection points;

d) intended capacity of the system in terms of number of channels and bandwidth or transmission rate;

e) location of the main points of presence, in the format City/State; and,

f) illustrative diagram of the system with the description of the functions performed by each element of the diagram.

Article 2. The technical Project must be accompanied of an Annotation of Technical Responsibility, regarding the project, duly signed by a professional qualified by the Regional Council of Engineering, Architecture and Agronomy with competence to take responsibility for technical activities in the telecommunications area.

ANNEX III

NECESSARY DOCUMENTS TO THE TRANSFER OF AUTHORIZATIONS AND CORPORATE CHANGES

Article 1. In the case of transfer of authorization, the request, signed jointly by the assignor and the assignee, must be accompanied of the following documents regarding the assignee:

I - articles of association and respective amendments, duly registered in the competent department;

II - list of shareholders indicating the number, the type, and the value of each share, as well as the Individual Taxpayers’ Registry (CPF) or National Corporate Taxpayers’ Registry (CNPJ) of shareholders, as well as the Minutes of the Meeting in which officers were appointed, in the case of corporations;

III - evidence of address of shareholders holding the majority of the shares or voting shares, if individuals; and,

IV - documents proving the good standing for tax purposes, the technical qualification, and the economic-financial qualification.

Article 2. In the case of amendment that may characterize the transfer of control, as provided for in article 34 of this Regulation, the interested party must attach the amendment to the articles of association to the request, detailing the intended transfer transactions or replacement of Officers or Controllers, in the case of limited liability company, or draft of the Minutes of the Meeting in which the transfer or replacement of Officers or Controllers has been decided, in the case of corporation, with the following documents:

I - articles of association and respective amendments, duly registered in the competent department;

II - list of shareholders indicating the number, the type, and the value of each share, as well as the Individual Taxpayers’ Registry (CPF) or National Corporate Taxpayers’ Registry (CNPJ) of shareholders, as well as the Minutes of the Meeting in which officers were appointed, in the case of corporations; and,

III - evidence of residence of shareholders holding the majority of the shares or voting shares, if individuals.

Article 3. In the event of the transfers, amendments, or agreements referred to in article 35 of this Regulation, the Service Provider shall present the full copy of the instruments filed in the competent department.

ANNEX II TO RESOLUTION Nº 614, OF MAY 28, 2013

Article 1. Annexes I and III of the Regulation for the Charging of Public Price for the Right to Explore Telecommunications Services and the Right to Explore Satellite, approved by Resolution nº 386, of November 3, 2004, and amended by Resolutions nº 484, of November 5, 2007, and nº 595, of July 20, 2012, shall be in force with the following wording:

ANNEX I

ANNEX III

Article 2. This amendment is effective as from the date of its official publication.