Our principal properties consist of our long-distance network, including broadband fiber optic transmission systems, digital switching systems, international ocean cables, satellite earth stations, and related real estate. At December 31, 2000, the net book value of our property, plant and equipment was approximately R$7.5 billion.

Our properties are located throughout Brazil, providing the necessary infrastructure to support nationwide long-distance and international telecommunications. We conduct the majority of our management activities from Rio de Janeiro, and own and lease office space in other cities including São Paulo, Porto Alegre, Belo Horizonta, Curitiba, Brasília, Salvador, and Belém.

We believe that our network facilities are in good condition and are suitable to support the wide array of advanced communications services that we offer. Our network facilities position us to be the prime all-distance telecommunications network for South America.