• Print
  • Send to a friend

Material Fact

Oi S.A. - In Judicial Reorganization
CNPJ/MF Nº 76.535.764/0001-43
NIRE 33.30029520-8
Publicly-Held Company


Oi S.A. - In Judicial Reorganization ("Oi" or "Company"),pursuant to Art. 157, paragraph 4, of Law 6,404/76, CVM Instruction No. 358/02 and further to the Notice to Shareholders dated December 10, 2018, informs its shareholders and the market in general of the publication on this date of Decree No. 9,619 / 2018, which revoked Decree No. 7,512 / 2011 and approved a new General Plan of Goals for the Universalization of the Switched Fixed Telephone Service (Plano Geral de Metas de Universalização do Serviço Telefônico Fixo Comutado), applicable to the period from 2016 to 2020 ("New PGMU").

Amongst the regulations of the New PGMU, the following points are emphasized:

  • The New PGMU presents a substantial reduction in the plant of public use terminals (terminais de uso público - "TUP"), given that it no longer takes into account issues such as the density of terminals per inhabitants or minimum distance between the terminals;
  • TUPs installed in locations with up to 300 inhabitants must be maintained, even without demand;
  • Replacing the TUPs that are no longer mandatory, the concessionaires will have a new obligation regarding the implementation of fixed wireless access systems with support for broadband connection;
  • The fixed wireless access systems must also technically be able to offer Personal Mobile Service (Serviço Móvel Pessoal - "SMP") through fourth generation technology ("4G") or superior technology in a regime of industrial exploitation;
  • The obligation will be fulfilled with the installation of a Base Radio Station (Estação Rádio Base - "ERB") by location and such infrastructure will be reversible;
  • The Company shall serve 866 locations in Region 1 and 289 locations in Region 2 and will be subject to a progressive service schedule, which will start with 10% service in 2019 and reach 100% service in 2023;
  • The National Telecommunications Agency (Agência Nacional de Telecomunicações - "ANATEL") shall assess the equivalence between the reduction in the TUP obligation and the new obligation of providing fixed wireless access systems in order to maintain an equilibrium between the obligations. In case any balance is observed, ANATEL shall appoint new locations to be served with fixed wireless access systems;
  • ANATEL shall prepare and present to the Ministry of Science, Technology, Innovation and Communications (Ministério da Ciência, Tecnologia, Inovações e Comunicações - "MCTIC") a plan proposal for the future use of any balances arising out of the elimination of obligations of Multi-Facility Service Stations (Postos de Serviços Multifacilidades - "PSM") and the balance of the previous PGMU’s Backhaul target; and
  • The concessionaires have no obligation to offer SMP.

The Company will keep its shareholders and the market informed on any material development of the subject matter of this Material Fact.

Rio de Janeiro, December 21, 2018.

Oi S.A. - In Judicial Reorganization
Carlos Augusto Machado Pereira de Almeida Brandão
Chief Financial Officer and Investor Relations Officer

Click here for the pdf file.

(¹) This translation is still subject to the auditors review

(¹) This translation is still subject to the auditors review