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Embratel SA(Operating Company) - Information to Shareholders

About Embratel Participações
Overview
Introduction History Human Resources

 
History
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Annual SEC Report - FORM 20-F

Annual Report

Embratel Participações S.A. was created on May 22, 1998 as one of the holding companies resulting from the breakup of the Telebrás System for the privatization process. MCI acquired the controlling stake of the company in a privatization auction on July 29, 1998. On July 23, 2004, Teléfonos de México S.A. de C.V. ("Telmex") acquired the controlling stake.

Embratel Participações controls Vésper and Empresa Brasileira de Telecomunicações S.A. - Embratel, Brazil's major long distance carrier, and has the following subsidiaries: BrasilCenter and Star One.
A Glimpse at the Embratel Trajectory
From .net to .com

Company is ready for the new millenium and goes all out for the competitive marketplace
Embratel went private on July 29, 1998, just before its 33rd anniversary. The new owner is U.S.-based MCIWorldCom.

This revolution brought with it a new business attitude and Embratel was faced with the challenge of focusing its efforts and products more effectively on the corporate and individual clients. So far, the challenge has been met successfully.

On July 23, 2004, Teléfonos de México S.A. de C.V. ("Telmex") acquired the controlling stake in EMbratel Participações S.A..

Now Embratel knows that "navigation is a must, and so is competition". And more than that, we must continuously overcome the challenges brought by the new changes, especially because statistics show that only the adjusting companies survive.

Nonstop Development

Do you still remember what it was like to make a phone call in 1965, before Embratel? What about long-distance calls? You often had to wait a whole day or more to get through. In those days, Brazil had a meager 1,326,000 telephones, three microwave systems (Rio de Janeiro- São Paulo-Campinas, Rio-Belo Horizonte and Rio-Brasilia) and a few radio loops connecting the country's capital city to state capitals. There were only 39 voice circuits and a handful of telegraph channels for international communications.

Fortunately though, this state of affairs has changed and now Embratel is pleased to be a part of this revolution. Today, our country is connected to the whole world through all communication media, and is provided with the most advanced telecommunications services ever. For its pioneering, competitive spirit, it is constantly engaged in a quest for new challenges. Therefore, it feels responsible for meeting the telecommunications requirements of Brazil in the best possible way, offering top quality services and an unmatched customer care. And our customers, just like you, who are the only reason for our existence, come out better.