We have the largest long-distance telecommunications network in Latin America providing both national and international connections to thousands of points throughout Brazil.

We are the main provider of high-speed data transmission and Internet service in Brazil, with the largest national network of broadband fiber-optic transmission systems. Our network has countrywide coverage with 28,388 kilometers of fiber cables comprising 1,045,617 kilometers of optical fibers as of the end of 2000. In addition, we use a 100% digital switching system for voice and data and use packet-switched data communications, ATM (asynchronous transfer mode) and frame relay for data and Internet services. We have metropolitan digital fiber networks in the largest cities in Brazil with direct fiber or wireless connections to businesses. We are implementing lateral fiber extensions with commercial buildings connected to metropolitan rings, providing high quality direct connections. We continue to expand construction of metropolitan digital fiber optic networks to additional strategic cities with a high concentration of business customers. We utilize digital microwave transmission systems in areas where installation of fiber cables is less cost effective. We also use satellites to provide services to remote locations within the country.

The following table sets forth certain details regarding our domestic long-distance and data network:

		As of December 31,
Network Information		1998		1999		2000
Urban fiber rings (fiber kilometers)		2,779		28,578		81,524
Optical fiber (fiber kilometers)		697,689		974,673		1,045,617
Long-distance Trunks		993,306		1,354,000		1,877,486

We currently own and operate a domestic earth station in Guaratiba, located in the state of Rio de Janeiro. This station, activated in 1985, accesses the Brasilsat A2, B1, B2, B3 and B4 satellites. These satellites cover the entire territory of Brazil, Argentina, Uruguay and Paraguay and were launched by Arianespace S.A. The satellites are maintained and monitored by us through the Guaratiba earth station.

We provide international service primarily through major international undersea cable systems, which link Brazil with key trading partners. We have three international digital switches in strategic locations and employ satellites to provide additional international capacity and to reach regions of the world where this is the most economical method. We have direct international network connections via digital fiber-optic cables and digital radio transmission to Argentina, Uruguay, Bolivia and Paraguay. To complement and diversify our international network and increase our global service capacity in a cost-effective way, we currently utilize satellite leased capacity from the International Telecommunications Satellite System - Intelsat, an intergovernmental organization in which we have ownership interest. The satellite channels are controlled and monitored through our two own earth station complexes for international service, one located in Tangua (in the state of Rio de Janeiro) and one located in Morungaba (in the state of São Paulo). These earth stations, activated in 1969 and 1986, respectively, access Intelsat satellites positioned over the Atlantic Ocean with coverage of the entire American continent, Western Europe, Africa and Middle East.

We own an international submarine cable network that reaches all continents. In 2000, we added to our Network substantial capacity with the completion of two new digital cable systems: Atlantis 2, which connects directly to Europe and Argentina, and Americas II, which provides a second high capacity link between Brazil and the United States.