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BRAZIL DELAYS AUCTION OF REMAINING MIRROR LICENSES

SAO PAULO, Brazil-Anatel, Brazil’s telecommunications regulatory agency, announced the
auctions for the remaining two mirror licenses would be delayed from March 11 to April 23. The two licenses, for the
regions of Tele Centro Sul and Sao Paulo, are being awarded to establish competition with Telebras companies
privatized last year.

Anatel President Renato Guerreiro said the postponement was granted as a result of requests
from interested consortia, which include Qualcomm Inc., to reformulate their proposals in light of the recent
devaluation of the real, according to Pyramid Research.

“While later than planned, the new auction schedule
should allow consortia to reformulate their strategies and develop buildout plans that are more realistic in view of
current market restraints,” said Pyramid.

Two licenses, one to compete with the privatized Telebras operator
in northern Brazil and the other to operate a long-distance company, already have been awarded.

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