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Embratel Participações S.A. is the controller of Empresa Brasileira de Telecomunicações S.A. - Embratel. The shareholding control of Embratel passed to Telmex in july of 2004 been gotten by MCI.

Operator's Site: Embratel

Embratel has a concession to Long Distance National and International in the whole country, which correspond to sector 35, region IV of PGO (Operator Code: 21).

Main Embratel indicators

Million R$	2004	2005	2006	2007
Gross Revenue	9,687,4	10,178,0	11,141	11,765
Net Revenue	7,332,9	7,565	8,220	8,625
EBITDA	1,373,4	1,694	1,154	2,165
Margin EBITDA	18.7%	22.4%	14.0%	25.1%
Net (lost) Income	(339.3)	174.3	105.8	841
Liquid Debt	2,597,8	1,008	2,014	2,599
Investments	579.6	1,427	1,459	1,278

Commentary

Embratel's Gross Revenue in 2007 (R$ 11,765 millions) was 5.6% bigger than 2006.

The local services, that already presented 14.9% of Embratel's net revenue, were responsible for this result. While the local services revenue presented growth of 40.7%, the revenue of long distance decreased 3.1% and data communication grew 0.5%.

In local services are included corporative and residential clients of Embratel's local fixed telephony. In the residential segment Livre reached 1,374 thousand subscribers and Net Fone 561 thousand.

Local Service

Embratel has gotten Vesper having the local service authorizations of mirror companies in the Regions I and III of PGO. From the joint venture between the companies, since 05/26/05 , Embratel became Local STFC Provider, not using Vésper brand in the relationship with the clients anymore.

Embratel also has authorization to be Local service provider in the Region IV, it resigned Vesper local service authorizations.

Important Facts

08/11/2003	Announced the signature of a intention Letter to a possible acquisition of Vesper by Embratel.
09/02/2003	Signature of a purchase agreement and selling with AT&T Latin America Corp. to acquire its operational subsidiary in five countries: Argentina, Brazil, Chile, Colombia and Peru. AT&T finished being acquired for the Telmex in October of 2003.
Nov 2003	MCI announces intention of selling Embratel. Anatel approves Vésper purchase for Embratel. The operation was done in December.
March 2004	Telmex announced agreement with MCI to Embratel's purchase.
June 2004	Anatel approves Embratel purchase by Mexico Telmex. Telmex acquire participation on Globopar/Net.
June/05	Published by Anatel resigned act of Embratel Local service authorizations of Vésper.
August 2005	Embratel acquired Primesys of Portugal Telecom per R$ 231.25 million.
Sept/05	Embratel Participações announces the incorporation of Telmex Brazil and the shareholding participation, 37.1% of social capital of Net Serviços de Comunicação S.A. stucked by Mexico Telmex.
May/06	Telmex presented a public offer to the acquisition of Embratel Participações's shareholdings in circulation in the market with the purpose of cancelling its register as public company.