Attachment Brasil Telecom TC 12

This document pretains to SCL-T/C-20081212-00021 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2008121200021_683644

                                     Before the
                      FEDERAL COMMUNICATIONS COMMISSION
                               Washington, D.C. 20554


In the Matter of




                                                    No No/ No Nt Nes Ne Ne Ned Ned Nue! Ne Nee Neme! Neuat! Nue! Nue!
Brasil Telecom of America Inc.

       Licensee,

Brasil Telecom S.A.
       Transferor,

       and                                                                                                              File No. SCL—T/C—2008

Telemar Norte Leste S.A.
       Transferee

Application for Transfer of Control of
Cable Landing Licenses


                     APPLICATION FOR TRANSFER OF CONTROL OF
                             CABLE LANDING LICENSES

       Brasil Telecom of America Inc. ("GlobeNet"), its ultimate parent company, Brasil

Telecom S.A. ("Brasil Telecom"), and Telemar Norte Leste S.A. ("Telemar") (collectively, the

"Applicants"), pursuant to an Act Relating to the Landing and Operation of Submarine Cables in

the United States, 47 U.S.C. §§ 34—39 (1994), Executive Order No. 10530, Exec. Ord. No. 10530

reprinted as amended in 3 U.S.C. § 301, and Section 1.767 of the Rules of the Federal

Communications Commission ("Commission"), 47 C.F.R. § 1.767, hereby request approval for

the transfer of control of GlobeNet as the holder of cable landing licenses‘ from Brasil Telecom

to Telemar.

        As described below, through a series of related transactions, Brasil Telecom will become




‘FCC File Nos. SCL—LIC—19961026—00001 and SCL—LIC—19990602—00010.


a direct wholly—owned subsidiary of Telemar (the "Transaction"). As a result of the Transaction,

Telemar will indirectly control GlobeNet. Although control of GlobeNet will change, GlobeNet

will continue to provide services in the United States to its existing customers under existing

service arrangements pursuant to its submarine cable landing licenses granted by the

Commission. The Transaction, therefore, will be seamless to GlobeNet‘s customers. Attached

hereto as Exhibit A are organization charts that illustrate, with respect to control of GlobeNet,

the current corporate structure of the Applicants and the structure that will exist immediately

following consummation of the proposed Transaction.

       Applicants provide the following information in support of this Application:

1.     THE APPLICANTS

       A.      Brasil Telecom of America, Inc. ("GlobeNet") (Licensee)

       GlobeNet is a Delaware corporation. GlobeNet is an indirect wholly—owned subsidiary of

Brasil Telecom, a corporation (sociedade andnima) organized under the laws of the Federative

Republic of Brazil ("Brazil"), which, in turn, is controlled by Brasil Telecom Participagdes S.A.

("BrT Part"). BrT Part is indirectly controlled by Invitel S.A. ("Invitel"), also a corporation

organized under the laws of the Brazil. GlobeNet owns the GlobeNet Cable System, which links

two cable landing stations on the East Coast of the United States with cable landing stations in

Bermuda, Venezuela, and Brazil. The GlobeNet Cable System‘s U.S. cable landing stations are

in Boca Raton, Florida and Tuckerton, New Jersey.


        B.      Brasil Telecom S.A. ("Brasil Telecom") (Transferor)


        Brasil Telecom provides public switched fixed—line telephone services ("STFC") in

Region II of Brazil under concessions for each of the states in its region. Brasil Telecom is the

leading provider of local fixed—line telecommunications services and intraregional long—distance


telecommunications services in its service region. In addition, Brasil Telecom offers

interregional and international long—distance telecommunications services, broadband services,

mobile services, and a variety of data transmission services through various technologies and

means of access.

C.     Telemar Norte Leste S.A. ("Telemar") (Transferee)


       Telemar is a corporation (sociedade andnima) formed under the laws of Brazil. Telemar

is the leading STFC concessionaire in Region I of Brazil, offering, together with its subsidiary,

TNL PCS S.A. (known as "O1"), an integrated communications product portfolio that includes

traditional fixed—line telephony, mobile telephony, broadband, ISP, and other services to

residential consumers; small, midsize and large business users; and government entities.

Telemar has 16 local service and 16 domestic long—distance concessions in Brazil under which it

provides telecommunications services through its fixed—line telecommunications network.v Oi1

provides mobile services under a license to provide personal mobile telecommunications services

(Servigo Movel Pessoal), in Region I utilizing a frequency band referred to as "Band D."

Telemar Internet Ltda., a subsidiary of Telemar, is an Internet access provider that started

operations in February 2005 under the brand name Oi Internet.

IL.    THE PROPOSED TRANSACTION

        The transfer of control of GlobeNet will occur as part of a series of corporate tranéactions

by which Telemar will acquire de jure and de facto control of Brasil Telecom and its operating

subsidiaries, including GlobeNet. The Transaction is to be carried out under Brazilian law.

        As a first step of the Transaction, on April 25, 2008, Banco de Investimentos Credit

Suisse (Brasil) S.A. ("Credit Suisse"), acting as agent for Telemar, entered into a Share Purchase

Agreement (the "Share Purchase Agreement") with Invitel‘s controlling shareholders (“Séllers”),


regarding the shares representing the indirect control of Brasil Telecom and GlobeNet. The

Share Purchase Agreement provides for the future transfer to Telemar of all shares of Invitel and

some common shares of BrT Part directly owned by Sellers, representing altogether 60.5% of the

voting capital stock, and 22.28% of the total share capital of BrT Part. BrT Part itself holds

99.09% of the outstanding voting capital stock of Brasil Telecom, and preferred shares of Brasil

Telecom, representing 38.83% of the total outstanding preferred shares of Brasil Telecom, which

common and preferred shares collectively represent 65.64% of the total share capital of Brasil

Telecom. At the same time, Telemar and Credit Suisse entered into an agency agreement

(contrato de comissdo) (the "Agency Agreement") to rule the terms under which Credit Suisse

would enter into the Share Purchase Agreement on behalf of Telemar.

       As previously noted, Brasil Telecom is a concessionaire of STFC in Brazil‘s Regibn II, as

defined by the General Granting Plan (Plano Geral de Outorgas) enacted by Decree No. 2;‘,534 of

April 2, 1998 (the "PGO®"). Telemar is a concessionaire for the same services in Region I of the

PGO. At the time the Share Purchase Agreement was executed, Brazilian law imposed certain

restrictions in relation to the purchase of control of an STFC concessionaire by another STFC

concessionaire, which prevented Telemar from directly acquiring the shares of Invitel. This

restriction in the PGO was eliminated by the Brazilian Government on November 21, 2008, by

means of Decree No. 6,654.

        On November 21, 2008, Credit Suisse, in compliance with the Agency Agreement,

transferred its position in the Share Purchase Agreement to Telemar, which immediately filed

before the Brazilian Telecommunications Agency, ANATEL, a Request for Prior Approvhl

("Pedido de Anuéncia Prévia"), as requested by law, of the acquisition of the shares representing

the control of Brasil Telecom. Such Request is currently under analysis by ANATEL.


       As per the Share Purchase Agreement, Telemar may assign its rights and obligations

under the Share Purchase Agreement to one of its subsidiaries; should that happen, the Request

for Prior Approval before ANATEL will have to be amended accordingly. Once ANATEL

approval is granted, Telemar will acquire the shares of Invitel and the shares of BrT Part owned

by Sellers and therefore will become the controlling shareholder of BrT Part and Brasil Telecom.

The closing of this part of the Transaction shall take place within 10 business days after

obtaining ANA”fEL’s approval (the "Closing Date").

       As a second step of the Transaction, and independent from the transactions contenzlplated

by the Share Purchase Agreement, Telemar has issued voluntary tender offers to the holders of

preferred shares of BrT Part and Brasil Telecom, for up to 1/3 of the outstanding preferred shares

of BrT Part and of Brasil Telecom (the "Voluntary Tender Offers")."

       As a third step of the Transaction, following the acquisition of control of BrT Part and

Brasil Telecom by Telemar, Telemar will conduct mandatory public tender offers (the

"Mandatory Tender Offers"), destined to all minority common shareholders of BrT Part and of

Brasil Telecom. The goal of the Mandatory Tender Offers is to obtain 100% of the common

shares of BrT Part and Brasil Telecom held by their minority shareholders. Telemar has to file a

request for registration of the Mandatory Tender Offers with the Brazilian Securities

Commission (Comissdo de Valores Mobilidrios) up to 30 days after the Closing Date.

        Finally, following the conclusion of the Mandatory Tender Offers, a corporate

restructuring is intended for the companies acquired, directly or indirectly, in order to simplify

the corporate structure, unifying the shareholders of BrT Part and Brasil Telecom within Telemar




2      The Voluntary Tender Offers have been launched by a wholly—owned subsidiary of
Telemar, COPART2 Participagdes S.A., a corporation organized under the laws of the Federative
Republic of Brazil.


and strengthening the companies involved (the "Corporate Restructuring"). The Corporate

Restructuring will contemplate, among other transactions, the merger of BrT Part into Brasil

Telecom, followed by the share exchange of Brasil Telecom into a subsidiary of Telemar and its

subsequent merger. It is expected that, after the Corporate Restructuring, considering the full

adhesion by minority shareholders of the announced tender offers, such that the purchase of

100% of the common shares and one third of the preferred shares outstanding of BrT Part and

Brasil Telecom, the shareholding structure of Telemar (and as a result of Brasil Telecom and its

operating subsidiaries) will be, substantially, as set forth in Exhibit A attached hereto.

III.   PUBLIC INTEREST CONSIDERATIONS

       Consummation of the Transaction described herein will serve the public interest because

it will lead to the emergence of a stronger and better—financed competitor in the submarine cable

market for capacity between the United States and the Caribbean and Brazil. Under Telemar‘s

ownership, GlobeNet will be able to operate in a more efficient and economical manner and will

have better access to capital needed to maintain and grow GlobeNet‘s competitive submarine

cable capacity business.

        Moreover, the change in ownership of GlobeNet will not have any adverse impact on

existing customers. GlobeNet, backed by its new parent company, Telemar, will continue to

possess the managerial and technical qualifications to provide international telecommunications

services. Because the Transaction will be completed at the holding company level and will not

change the rates, terms or conditions of GlobeNet‘s services, the Transaction will not result in a

change of service provider for GlobeNet‘s customers and will otherwise be transparent to

customers of GlobeNet receiving services in the United States. Immediately following

consummation of the Transaction, GlobeNet will continue to provide high—quality private'


carriage services to its customers without interruption and without immediate change in rates,

terms or conditions.

        At the same time, a grant of the Application would not result in any anticompetitive

effects. For these reasons, Applicants respectfully submit that this Transaction is in the public

interest.

IV.     INFORMATION REQUIRED BY SECTION 1.767 OF THE COMMISSION‘S
        RULES

        In support of this Application, Applicants submit the following information in accordance

with Section 1.767 of the Commission‘s Rules, 47 C.F.R. § 1.767:

        (1)       Name, address and telephone number of Applicants:

                  Licensee:     Brasil Telecom of America, Inc.       FRN: 0008377665
                                5355 Town Center Road
                                Suite 1102
                                Boca Raton, FL 33486
                                (561) 314—0502

                  Transferor:   Brasil Telecom S.A.                   FRN: 0018323964
                                SIA/Sul, ASP, Lote D, Bloco B                               ’
                                Setor de Industria e Abastecimento
                                Brasilia, DF, Brazil — CEP:71215—00
                                011—55—61—3415—1414

                  Transferee:   Telemar Norte Leste S.A.              FRN: 0018321984
                                Rua General Polidoro, nr. 99, 5th floor, Botafogo
                                Rio de Janeiro, RJ, Brazil — CEP : 22280—004
                                011—55—21—3131—1208

            (2)   Place of Formation:

                  Licensee/Transferor: GlobeNet is a corporation organized under the laws of
                                        Delaware. Brasil Telecom is a corporation organized under
                                        the laws of Brazil.

                  Transferee:           Telemar is a corporation organized under the laws of
                                        Brazil.


(3)   Correspondence concerning this Application should be sent to:

                For GlobeNet and Brasil Telecom:

                Erick W. Contag
                5355 Town Center Road
                Suite 1102
                Boca Raton, FL 33486
                Tel: (561) 314—0502
                Fax: (561) 314—0510

                with a copy to:

                Ulises R. Pin
                Troy F. Tanner
                Bingham McCutchen LLP
                2020 K Street, NW
                Washington, DC 20006
                Tel: (202) 373—6000
                Fax: (202) 373—6001

                For Telemar:

                Alain Riviere
                Regulatory Matters Director
                Telemar Norte Leste S.A.
                Rua Humberto de Campos, nr. 425 — 8th floor
                Rio de Janeiro, RJ, Brazil — CEP : 22430—190
                Tel: 011—55—21—3131—1212
                Fax: 011—55—21—3131—1339

                with a copy to:

                Paul 0. Gagnier
                Bingham McCutchen LLP
                2020 K Street, NW
                Washington, DC 20006
                Tel: (202) 373—6592
                Fax: (202) 373—6001

      (4)—(7)   Not Applicable.

      (8)       Certification and Ownership Information Required by Sections 63.18(h)—(k)
                and (0) of the Commission‘s Rules, 47 C.F.R. §§ 63.18(h)—(k), (0):

                Post—close, the ownership structure of GlobeNet will be as follows:


The following entity will hold a 100% voting and equity interest in Licensee
GlobeNet:

Brasil Telecom Subset Cable Systems (Bermuda) Ltd.
SIA/Sul, ASP, Lote D, Bloco B
Setor de Industria e Abastecimento
Brasilia, DF, Brazil — CEP : 71215—00
Citizenship: Bermuda
Principal Business: Telecommunications

The following entity will hold a 100% voting and equity interest in Brasil
Telecom Subset Cable Systems (Bermuda) Ltd.:

Brasil Telecom Cabos Submarinos Ltda.
SIA/Sul, ASP, Lote D, Bloco B
Setor de Industria e Abastecimento
Brasilia, DF, Brazil — CEP :; 71215—00
Citizenship: Brazil
Principal Business: Telecommunications

The following entity will hold a 99.99% voting and equity interest in Brasil
Telecom Subset Cable Systems (Bermuda) Ltd.:

Brasil Telecom S.A.
SIA/Sul, ASP, Lote D, Bloco B
Setor de Industria e Abastecimento
Brasilia, DF, Brazil— CEP: 71215—00
Citizenship: Brazil
Principal Business: Telecommunications

The following entity will hold a 100% voting and equity interest in Brasil
Telecom S.A.:

Telemar Norte Leste S.A.
Rua General Polidoro, 99, 5th floor, Botafogo
Rio de Janeiro, RJ, Brazil — CEP : 22280—004
Citizenship: Brazil
Principal Business: Telecommunications

Telemar is a Brazilian corporation whose common and preferred shares are
publicly traded on the BOVESPA market in Sao Paulo, Brazil. The following
entity holds a 97.4% voting interest and $2.0% equity interest in Telemar:


             Tele Norte Leste Participagcdes S.A. ("TNL")
             Rua Humberto de Campos, 425, 8th floor, Leblon,
             Rio de Janeiro, RJ, Brazil — CEP :; 22430—190
             Citizenship: Brazil
             Principal Business: Holding Company

             No other individual or entity holds a 10% or greater voting or equity interest in
             Telemar.

             TNL is a Brazilian corporation whose common and preferred shares are publicly
             traded on the BOVESPA market and the New York Stock Exchange. The
             following entity holds a 52.45% voting and 17.48% equity ownership interest in
             TNL:

             Telemar Participagdes S.A. ("TmarPart")
             Praia de Botafogo 300, 11th Floor, sala 1101 (parte),
             Rio de Janeiro, RJ, Brazil 22250—040
             Citizenship: Brazil
             Principal Business: Holding Company

             TmarPart thus is deemed to have an indirect voting and equity interests of 97.4%
             and 14.33% respectively in GlobeNet. No other individual or entity hold a 10%
             or greater equity or voting interest in TNL or, indirectly, in GlobeNet.*

             TmarPart has two classes of capital stock: common and preferred. TmarPart‘s
             shareholders are parties to shareholders‘ agreements that address, among other
             matters: (1) the election of the board of directors of Telemar and (2) rights of the
             shareholders of TmarPart with respect to the disposal by TNL and TmarPart of
             their shares in Telemar.




* The Bank of New York is the holder of record of American Depositary Receipts ("ADRs") that
represent 49.51% of the preferred shares of TNL The preferred shares constitute a 33% equity
holding in TNL (and an indirect equity interest in GlobeNet of 27.06%. The ADRs are publicly
traded on the New York Stock Exchange and are widely held.                             ‘


                                         — 10 —


                        The following table sets forth information concerning the ownership of the
                        common and preferred shares of TmarPart as of June 30, 2008. TmarPart‘s
                        preferred shares do not convey voting rights except in limited circumstances.



                                                                            Preferred
TmarPart Shareholders                     Common Shares                      Shares          Total Shares
                                             Owned                           Owned              Owned            %o

BNDES Participagées S.A.                     $58,225,280                    1,000,000    ¢   859,225,280 31.4%
Fiago Participaghes S.A                      683,147,324                           —         683,147,324 25.0%
LF. Tel S.A.                                 529,095,885               |           —         529,095,885 19.3%
AG Group                                     529,095,885                           —         529,095,885         19.3%
Fundagdo Atlantico de Seguridade
   Social                                    137,316,044                           —         137,316,044          5.0%
Others                                                    10                       _——                      10        *

Total                                      2,736,880,418                    1,000,000    t 2,737,880,418_100.0%


   Upon closing of the Transaction, none of the shareholders of TmarPart will hold an indirect
   equity interest in Globenet of 10% or greater. TmarPart‘s shareholders will hold indirect voting
   interests in GlobeNet of 30.58% (BNDES Participacoes); 24.35% (Fiago); 18.80% (L.F. Tel);
   18.80% (AG Group); and 4.87% (Fundacao Atlantico de Seguridade Social).

   Set forth below are the names, business addresss, telephone numbers and brief descriptions of the
   shareholders of TmarPart. Each is a company incorporated under the laws of Brazil.

                                                               Business Description
            Name

   BNDES              BNDESPar, located at Avenida Chile 100, 22nd floor, Rio de Janeiro—RJ,
   Participacdes S.A. CEP: 20031—917, Brazil, telephone +55 21 2172—7231, is a subsidiary of
   (BNDESPar)         BNDES, a Brazilian government owned economic and social development
                      bank linked to the Brazilian Ministry of Development, Industry and External
                      Trade. The purpose of the Company is: (i) to promote operations in order to
                      capitalize ventures controlled by private groups, in conformity with °
                      BNDES® plans and politics; (ii) to support companies which gather
                              economical, technological and management efficiency conditions and
                              moreover which demonstrate adequate investment return perspectives in
                              terms and conditions compatible to its activity‘s risk and nature; (ii1) to
                              support the development of new ventures, in which activities new
                              technologies are incorporated; (iv) to contribute for the strengthening of the
                              capital market through the increase of the securities offer and the
                              democratization on the ownership of the companies capital; (v) to manage
                              own and third parties securities portfolio.

                                                     —11 —


Fiago               Fiago Participagdes S.A., located at Avenida Presidente Wilson, 231, 11th
Participacdoes S.A. floor, Centro, Rio de Janeiro, RJ, Brazil, CEP:20030—905, telephone +55 21
                    3974—4549, is a holding company which invests in other companies. It was
                    established on January 23, 1998 to invest in companies emerging from the
                    privatization of Telebras. It is controlled by FCF Fundo de Investimento em
                    Agoes.                                                              ‘

L.F. Tel S.A.        L.F. Tel S.A., located at Avenida Dr. Chucri Zaidan No. 920, 16th floor, Sio
                     Paulo, SP, Brazil, telephone +55 11 3048—7270, is a subsidiary of La Fonte
                     Telecom S.A., a holding company that is part of the Jereissati Group. L.F.
                     Tel‘s principal asset is its equity interest in TmarPart. The Jereissati Group
                     has investments in the commercial real estate sector in Brazil. It partially
                     owns and manages nine shopping malls in the Southern and Southeastern
                     regions of Brazil.

AG Group             The companies comprising AG Group, located at Av. Do Contorno §123,
                     Belo Horizonte, Minas Gerais, Brazil, telephone +55—31—3290 6645, are
                     subsidiaries of Andrade Gutierrez S.A. responsible for managing the
                     telecommunications business of the Andrade Gutierrez Group. The
                     conglomerate develops its activities focused on three core businesses: (a)
                     engineering work in Brazil and abroad; (b) operating public concessions in
                     Brazil, primarily highways and water treatment; and (c) telecommunications
                     in Brazil.

Fundacao          Fundagcdo Atlantico de Seguridade Social, or FASS, is a private
Atlantico de      supplementary pension entity that Telemar incorporated in August 2004, and
Seguridade Social which manages private pension plans for the benefit of Telemar‘s
                  employees. FASS is located at Rua Lauro Muller, 116, sala 2091, Torre do
                     Rio Sul, Botofogo, Rio de Janeiro, RJ Brazil, CEP:22.290—160, telephone
                     +55—21—3873 9292.

    There are no other shareholders of TmarPart who directly or indirectly own 10 percent or
    more of TmarPart or Telemar‘s equity and thus will own 10% or more of GlobeNet‘s equity
    post—close.

                Section 63.18(h) Interlocking Directorates

                 There are no officers or directors of Telemar that are officers and directors of
                 foreign carriers.




                                            —12 —


Section 63.18(i) — Certification Regarding Foreign Carrier Status and Foreign
Affiliation:

By its signature to this Application, Telemar certifies that it is a foreign carrier in
Brazil within the meaning of 63.09(d) of the Commission‘s Rules. Telemar is not
affiliated with any other foreign carriers in Brazil or other countries. Upon
consummation of the Transaction, Telemar will become affiliated with Brasil
Telecom‘s foreign carrier affiliates in Bermuda and Venezuela.

GlobeNet is currently affiliated with Brasil Telecom, a dominant carrier in Brazil,
and the following non—dominant carriers in Brazil, Venezuela and Bermuda;

        (a)   Brasil   Telecom de Venezuela S.A., in Venezuela;
        (b)   Brasil   Telecom Cabos Submarinos Ltda., in Brazil;
        (c)   Brasil   Telecom Celular S.A., in Brazil; and
        (d)   Brasil   Telecom Subsea Cable Systems (Bermuda) Ltd., in
        Bermuda.

Section 63.18() — Certification Regarding Destination Markets:

By its signature to this Application, Telemar certifies that through the acquisition
of control of GlobeNet, it seeks to provide international telecommunications
services to the destination countries of Bermuda, Brazil, and Venezuela.

Telemar is a foreign carrier deemed by the FCC to hold market power in Brazil
because it is holds a greater than 50% market share of local exchange services in
Region I of Brazil.                                                            |

GlobeNet will retain its affiliations with non—dominant carriers in Venezuela and
Bermuda.

Section 63.18(k) — Demonstration Regarding WTO Status, Market Power, and
the Effective Competitive Opportunities Test:

The foreign carriers listed above in Section 63.18(i)(j) of this Application are
based in countries that are Members of the World Trade Organization. GlobeNet
will accept dominant carrier treatment in its provision of service to Brazil, and
will file the quarterly reports required by Section 1.767(1) of the Commission‘s
Rules, 47 CFR § 1.767(1).

With the exception of Brasil Telecom and Telemar, none of the carriers listed
above in Section (J) is listed on the Commission‘s List of Foreign
Telecommunications Carriers that are Presumed to Possess Market Power in
Foreign Telecommunications Markets. In addition, these foreign carriers offer
services in competition with dominant foreign carriers and others. These foreign
carriers each hold significantly less than a 50% market share in the international



                             —13 —


      transport market between the U.S. and their home markets and in the local access
      markets in the countries where they operate. Moreover, these foreign carriers do
      not have the ability to discriminate against unaffiliated U.S. international carriers
      through the control of bottleneck services or facilities to exercise market power in
      the countries where they operate. Accordingly, GlobeNet‘s foreign carrier
      affiliates lack sufficient market power on the U.S.—international routes on which
      they operate to affect competition adversely in the U.S. market. Therefore,
      GlobeNet should be presumptively classified as a non—dominant carrier on‘all
      international routes, except Brazil.

      Section 63.18(0) — Certification Regarding the Anti—Drug Abuse Act of 1988:

      By their signature to this Application, Telemar and Brasil Telecom certify,
      pursuant to Sections 1.2001 through 1.2003 of the Commission‘s Rules, 47 C.F.R.
      §§ 1.2001—1.2003) (implementing the Anti—Drug Abuse Act of 1988, 21 U.S.C. §
      3301), that they are not subject to a denial of Federal benefits pursuant to Section
      5301 of the Anti—Drug Abuse Act of 1988.

(9) Certification of Compliance:

       By its signature to this Application, Telemar certifies that it accepts and will abide
       by the routine conditions set forth in Section 1.767(g) of the Commission‘s Rules,
       47 C.F.R. § 1.767(g).

(10) Not Applicable.

(11) Information Required of Transfer of Control Applicants.

       A listing of the cable landing licenses held by GlobeNet and the file numbers of
       these licenses is attached hereto as Exhibit B.                          ;




                                   — 14 —


VI.     CONCLUSION

        For the foregoing reasons, Applicants respectfully submit that the public interest,

convenience, and necessity would be furthered by a grant of this Application. Applicants

respectfully request expedited treatment of this Application to permit the parties to consummate

the Transaction as soon as possible.

                                                Respectfully submitted,

                                                Brasil Telecom of America, Inc.


                                          By:        [s/
                                                Erick W. Contag
                                                Chief Operating Officer


                                                Telemar Norte Leste S.A.




                                          By:        [s/
                                                Cintia Schaimberg Medvedovsky
                                                Consultant of Regulatory Affairs




Date:   December 12, 2008




                                            ~15—


            EXHIBIT A


ILLUSTRATIVE CHARTS OF TRANSACTION


                                   PRE—TRANSACTION


                                            Invitel S.A.
                                              100% V
                                              100% E



                                     Solpart Participagdes S.A.       Widely Dispersed Shares
                                                                             48.59%
                                              51.41% V                       81.07% E
                                              18.93% E



                                Brasial Telecom Participagcées S.A
                                                 9% V
                                            65.64% E


                                         Brasil Telecom S.A.
                                              (Brazilian)
                                           99.9999996% V
                                           99.9999996% E




                                Brasil Telecom Cabos Submarinos Ltda.
                                               (Brazilian)
                                                100% V
                                                100% E




                          Brasil Telecom Subsea Cable Systems (Bermuda) Ltd.
                                             (Bermudian)
                                                100% V
                                                100% E




                                     Brasil Telecom of America Inc.
                                               (Delaware)
                                                100% V
                                                100% E




V = Common Voting Stock
E = Total Equity


                       POST—TRANSACTION (1)
                     (Before Pro—forma Consolidation)




                     Tele Norte Leste Participagdes S.A.


                    97.4% V
                    82.0% E.
                                       ¥
                          Telemar Norte Leste S.A.


                    100% V
                    100% E
                                       ¥

                                 Invitel/Solpart


                                                   51.6% V
48.4% V                                            18.9% E
38.9% E
              »!      Brasil Telecom Participagdes S.A.


                                                   99.1% V
0.9% V                                             67.3%
                                                      0
                                                         E.
11.2% E                                3
               >               Brasil Telecom S.A.


                                                   100% V
                                                   100% E
                                       ¥
                   Brasil Telecom Cabos Submarinos Ltda.


                                                     100% V
                                                     100% E
                                       ¥
          Brasil Telecom Subsea Cable Systems (Bermuda) Ltd.


                                                     100% V
                                                     100% E


                       Brasil Telecom of America Inc.
                                                               V = Common Voting Stock
                                                               E = Total Equity


                                   POST—TRANSACTION (2)
                               (After Pro—forma Consolidation)



                                                 Free Float Composition
   Tele Norte Leste Participagoes S.A.           Original Shareholder of:   Voting   Equity
                                                 Telemar                    2.4%     13.6%
                                                 BrT Part                   9.3%     14.7%
  88.3% V                                        Brasil Telecom                       9.5%
  62.2% E.                                       Total                      11.7%    37.8%

       Telemar Norte Leste S.A.


  100% V                                 A

  100% E
                   d
             Brasil Telecom S.A.


  100% V
  100% E
                    J

   Brasil Telecom Cabos Submarinos Ltda.


  100% V
  100% E


  Brasil Telecom Subsea Cable Systems (Bermuda) Ltd.


  100% V
  100% E
                        ¥

        Brasil Telecom of America Inc.




V = Common Voting Stock
E = Total Equity


                              EXHIBIT B
               SUBMARINE CABLE LANDING LICENSES HELD BY
                    BRASIL TELECOM OF AMERICA INC.

Cable System          FCC File No.         Regulatory            Landing Points
                                             Status
  GlobeNet       SCL—LIC—19961026—00001   Non—Common         Tuckerton, New Jersey,
                                             Carrier           St. David‘s, Bermuda
  GlobeNet       SCL—LIC—19990602—00010   Non—Common      Tuckerton, New Jersey; Boca
                                             Carrier       Raton, Florida; Punta Gorda,
                                                        Venezuela; Fortaleza, Brazil; Rio
                                                        de Janeiro, Brazil; and St. David‘s,
                                                                      Bermuda


                                CERTIFICATE OF SERVICE

The undersigned hereby certifies that the foregoing document was served this date upon the
following:


Marlene Dortch                                   Ambassador David Gross
Secretary                                        U.S. Coordinator
Federal Communications Commission                EB/CIP
445 12th Street, S.W.                            U.S. Department of State
Washington, DC 20554                             2201 C Street, N.W.
(via first class U.S. mail, postage prepaid)     Washington, D.C. 20520—5818
                                                 (via first class U.S. mail, postage prepaid)

James Ball                                       Kathy Smith
International Bureau                             Office of Chief Counsel/NTIA
Federal Communications Commission                U.S. Department of Commerce
445 12th Street, S.W.                            14‘" Street and Constitution Ave., NW.
Washington, DC 20554                             Washington, D.C. 20230
(via electronic mail to James.Ball@fce.gov)      (via first class U.S. mail, postage prepaid)

David Krech                                      Hillary Morgan
International Bureau                             Defense Information Systems Agency
Federal Communications Commission                Code RGC
445 12th Street, S.W.                            701 S. Courthouse Road
Washington, DC 20554                             Arlington, VA 22204
(via electronic mail to                          (via first class U.S. mail, postage prepaid)
David.Krech@fce.gov)

Susan O‘Connell
International Bureau
Federal Communications Commission
445 12th Street, S.W.
Washington, DC 20554
(via electronic mail to
Susan.OConnell@fee.gov)


                                              /8/
                                          Troy F. Tanner


December 12, 2008



Document Created: 2008-12-12 14:45:50
Document Modified: 2008-12-12 14:45:50

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