We entered into a management agreement with WorldCom, effective August 4, 1998, which was approved by our shareholders (other than WorldCom), pursuant to which WorldCom will provide us advice regarding our management, operations and business. Under the agreement, Embratel paid WorldCom as compensation for its management services in 1998, 1999 and 2000, an amount equal to one percent of Embratel's annual revenues during ach such year. The compensation for management services to be provided in 2001 and 2002 is one half percent of Embratel's annual revenue in each such year. For 2003, the compensation for management services to be provided is two-tenths percent of Embratel's annual revenues for such year. We had at December 31, 2000 accrued approximately R$67 million for management services fees pursuant to the management agreement with respect to management services provided from January 1, 2000 to December 31, 2000. Pursuant to the terms of the management agreement, the amount of fees accrued with respect to such services was determined based on revenues reported during the period from January 1, 2000 through December 31, 2000.