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11/18/2011

Multimedia Communication Service (SCM)

SCM	SCM Providers

This page: Definition of Multimedia Communication Service, statistics and regulation. Also describe the services of communication datas and its operators.

Definition of Multimedia Communication Service (SCM)

The telecommunication services, provided per operators of communication datas, can be divided in three groups:

Rent of circuit of datas (TDM) or virtual circuits in networks packs ( ATM,FR or X.25) to corporative networks.
Services of networks datas to the corporative market.
Circuit to access the internet, with ADSL offered by fixed telephony operators ( Velox, BrTurbo, Speedy) , by Cable TV operators or with access through radio ( wireless).

To provide these services an operator needs an authorization of Service of Communication Multimedia (SCM) outorgated by Anatel.

Multimedia Communication Service (SCM) is a fixed telecommunication service of collective interest, provided in national and international areas, in the private regimen, that makes possible the capacity of transmission, emission and reception of multimedia informations (datas, voice and image), using many ways, the subscribers inside of a service provider area.

SCM substituted SLE- Specialized Limited Service of Networks and Circuits, and nowadays Anatel doesn't give permission to these modalities of SLE.

SCM revenue of the operators

The table in the following shows the Data Communication Gross Revenue gotten by the main SCM operators in Brazil.

R$ Millions	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11
Oi	2,277	2,234	2,190	2,354	2,150	2,173	2,226
Telefonica	1,006	1,059*	1,132*	1,153	1,150*	1,210*	1,196*
Embratel*	1,079	1,088	1,079	1,095	1,078	1,090	1,125
Total	4,363	4,381	4,375	4,602	4,378	4,474	4,546

* Teleco's projection

R$ Millions	2006	2007	2008	2009	2010
Oi	5,104	5,903	7,354	8,668	9,312
Telefonica*	2,418	3,315	4,144	4,685	4,304
Embratel**	3,069	2,962	3,422	4,169	4,341
CTBC	118	178	246	-	-
Total	10,709	12,358	15,166	17,522	-

* Includes data revenue of Telecom Companies **Estimated by Teleco

Services of data communication

The main operators that provide services of communication datas in Brazil using proper infrastructure ( facility based) are:

Operators of

Fixed Telephony

Telemar, Brasil Telecom (including Metrored and Globenet), Telefonica, Embratel, Intelig and Engeredes (CTBC).

Electric

Eletronet, Eletropaulo, Light and Copel.

Others

Impsat, Telmex (ex-AT&T), Geodex, Diveo (Rádio) and Iqara.

Operators of Satellites and Submarine Cables.

Operators Datas

AES Com: www.aescomrio.com.br

Diveo: www.diveo.net.br

Eletropaulo Telecom: www.eletropaulotelecom.com.br

GVT: www.gvt.com.br

Global Crossing: www.globalcrossing.com

Cemig Telecom

Cemig Telecom, Companhia Energética de Minas Gerais S.A.'s subsidiary offers optical network for telecommunication services in the state of Minas Gerais using CEMIG infrastructure.

Companhia Energética de Minas Gerais' business model is "CARRIERS's CARRIER", in other words the company provides network in fiber for telecommunication operators that are willing to increase its area of operation inside the state of Minas Gerais or simply want to provide service to final clients without investing in their own networks, choosing to rent them. Companhia Energética de Minas Gerais is authorized by Anatel to explore Multimedia Communication Services (SCM).

R$ Thousands	2008	2009
Gross Revenue	99,298	119,070
Net revenue	81,542	96,675
Net Profit	21,602	28,163

AES with Rio (Light)

R$ Millions	2002	2003	2004	2005	2006	2007
Net Revenue	21.6	26.9	35.5	46.1	54.7	62.5
Net Profit	-0.4	0.1	4.9	12	17.7	23.6

AES Eletropaulo

AES Eletropaulo Telecom and AES Com, telecommunication operators owned by AES Brazil group, registered billing of R$ 51 million in the third quarter of 2009, with growth of 20% over the same period of the previous year. Company's net profit reached R$ 18 million, 14% higher than 3Q08. AES Eletropaulo Telecom and AES Com have an optical network of 4,700 kilometers.

Geodex

Geodex has an optical fiber net of 11 thousand quilometers and was sold in Jul/07 for R$ 52 million to UBS, Deutsche Bank and Meridiana Interprises. The company was property of a group of shareholders led by GP.

R$ Thousands	2000	2001	2002	2003	2004	2005	2006
Gross Revenue	3,612	4,292	5,212	6,161	7,559	9,910	15,184
Net Revenue	2,861	3,354	4,126	4,922	5,913	7,406	11,670