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Free Translation
Brasil Telecom
Repudiation to the
declarations
of the Chairman of
Telecom Italia
The Chairman of Telecom Italia affirmed to the Brazilian press that Brasil Telecom does not have technical ability to operate mobile telephony. This declaration caused deep indignation in Brasil Telecoms professionals. It is a disrespect to Brazilian technicians, besides being an offence, once Brasil Telecom was indicated as "the best telecommunications company in Latin America", in a poll released by Reuters. Note that Telecom Italia, which has operation in some countries of Latin America, was also evaluated in this poll.
The stake of Telecom Italia in our company never brought benefit to the management of Brasil Telecom. In contrast, there are some events that brought enormous damages to the company as the acquisition of CRT with overprice imposed due to interest of Telecom Italia, the mobile market entrance delay and the constant abuses in veto power right in decisions taken by the Board of Directors. Everything that was obtained by Brasil Telecom, which is reflected in its technological efficiency, in the results generated to the shareholders of the company, and in the satisfaction of its customers, was possible in spite of and not with the contribution of Telecom Italia.
It is not true that Brasil Telecom has filed with Anatel any document where it questions the Shareholders Agreement of the company. Brasil Telecom presented to its Board of Directors a proposal of a structure that it sought for conciliating the return of Telecom Italia to Brasil Telecoms block of control without harming the activities of our company in the mobile segment, what is completely known by the market.
Telecom Italia owns less than a 5% stake in Brasil Telecom and is the major shareholder of TIM. It is unfair that Telecom Italias top management intends that Brasil Telecom takes into account only the Italians interests on its decision process, in such a behavior that, if adopted, it would be against its obligations as a public service concessionaire and its shareholders rights.
We consider all that a disrespect mainly due to the fact that it comes from a company which is being questioned in Italy, and in other countries, for shunting lines of behavior produced by its management and that they involve, also, the payment of gratifications.
Brasilia, Brazil, September 12, 2003
Brasil Telecom
BRASIL TELECOM S.A.
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By: |
/S/
Carla Cico
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Name: Carla Cico
Title: President and Chief Executive Officer
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