Atribution of Licences to the Fixed Telephone Service

LICENCE Nº ICP - 01/99-SFT

The President of the Board of Directors of the Instituto das Comunicações de Portugal (ICP), Dr. Luís Filipe Nunes Coimbra Nazaré, by order dated 10 August 1999, under the provisions of Article 7(1)j and Article 9(3), both of Decree-Law 283/89 of 23 August, and under the terms of Articles 3 and 14 of Decree-Law 381-A/97 of 30 December, as amended by Decree-Law 92/99 of 23 March, grants a Fixed Telephone Service Provider Licence, within the national territory, to E3G - Telecomunicações, S.A., under the following terms:

1	E3G - Telecomunicações, S.A., henceforth known as E3G, entity registered at the ICP, under the terms of Decree-Law 381-A/97 of 30 December, as amended by Decree-Law 92/99 of 23 March, under No. ICP- 002/98, to exercise the activity of public use telecommunications, is hereby licensed as a Fixed Telephone Service Provider, within the national territory.
2 1.	By this licence, E3G is qualified to provide Fixed Telephone Service (FTS), understood to be the offering, to the public in general, of direct transport of real-time speech, at certain fixed locations, enabling any user, through equipment connected to a terminal point, to communicate with the other terminal point.
2.	For the purposes of the previous paragraph, the licensed entity is authorised to install the infrastructure provided for in the project presented, in particular concentration, switching or processing nodes, as well as to use means of transmission provided by public telecommunications network operators.

This licence is governed by the provisions of Decree-Law 381-A/97 of 30 December, as amended by Decree-Law 92/99 of 23 March, by the Regulations for the Operation of the Fixed Telephone Service (RESFT), as well as by other legislation applicable to the communications sector.

E3G may only commence the licensed activity on 1 January 2000, and the service it provides must be available within at least 18 months counting from the aforementioned date, unless duly justified for reasons of force majeure and recognised as such by the ICP.

5 1.

Within the licensed activity, E3G is subject, among other obligations arising from the applicable legislation, to the following obligations:

a)	To ensure the provision of the service to the general public, guaranteeing interconnection and interoperability with public telecommunications services provided by other entities, when requested by these entities, whenever the technical access specifications are present, under the terms of Decree-Law 415/98 of 31 December;
b)	To ensure access to national and international switched services with operators or providers with which it is interconnected, through call-by-call selection.
c)	To guarantee, by 30 June 2000, access to national or international switched services with operators or providers with which it is interconnected, through pre-selection, with the possibility of call-by-call override by dialling a short prefix.
d)	To use effectively and efficiently the frequencies allocated to it, complying with the terms and conditions defined by the ICP which determined the act of allocation.

For the purposes of subparagraphs b) and c) of the previous Paragraph, interurban and international calls are considered eligible.

E3G is obliged to comply with the order and injunctions which, under the terms of the law, are addressed to it by the competent authorities

E3G is also subject to compliance with other obligations which may be applicable to it following the publication of regulations which may be approved and which establish requirements and conditions unforeseen at the date of issue of this licence, in accordance with the principles of pursuit of public interest and proportionality.

6 1.

E3G has the following special obligations to the ICP:

a)	To inform the ICP of any alterations which may be introduced in its memorandum of association and/or in the technical-economic prerequisites which are the grounds for the attribution of this licence;
b)	To communicate the date of the effective commencement of the licensed activity;
c)	To inform the ICP of the geographical areas covered by the service provided;
d)	To make available and send to the ICP the statistical data and other information necessary for supervision of the commencement and development of the activity in the telecommunications markets;
e)	To comply with the indications which, under the terms of the law and this licence, are addressed to it by the ICP within the time limit established for this purpose, unless otherwise established by specific law.

For the purpose of the subparagraph d), E3G undertakes to afford access to its installations for verification of the equipment used, documentation and data.

The operation of public pay-telephones by E3G for access to the service shall be subject to the applicable rules established in the RESFT.

E3G is subject to the national numbering plan defined by the ICP, and should use the access prefix which is assigned to it.

Should E3G be declared by the ICP to have significant market power under the terms and for the purposes of the RESFT, it shall be subject to the corresponding specific obligations arising therefrom.

E3G undertakes to pay the ICP an annual fee, of an amount and in accordance with that established by order, according to the terms of and under the provisions of Article 29(3) of Decree-Law 381-A/97 of 30 December, as amended by Decree-Law 92/99 of 23 March, as well as any other fees which may be required by law.

This licence may be altered at the request of E3G, stating the full reasons therefor, or on the initiative of the ICP, following the publication of regulations which establish requirements and conditions unforeseen at the date of issue of this licence and which arise from the public use nature of the service provided.

This licence is granted for a period of 15 years, counting from 1 January 2000, the date of its expiration being 1 January 2015.

Lisbon, 10 August 1999.

The President of the Board of Directors

Dr. Luís Filipe Nunes Coimbra Nazaré