CEREMONY OF SIGNATURE

Consultancy Service in Cost Modeling

The ITU has recruited the company Advisia Management Consulting to help supporting the Brazilian Administration (ANATEL) in the development of cost modeling for telecommunication services. The selected company shall provide Anatel with the knowledge and necessary models and applications or software solutions for the determination of cost-based values as well as the reference values for the following services: a) interconnection rates of mobile services; b) operation of leased lines; and c) establishment of interconnection rates for the fixed services.

The development of this service is one of the main priorities of the Brazilian telecommunication sector. The development of cost modeling will allow ANATEL to have access to managerial information on costs of different business areas and line products of the telecommunications services operators, which will contribute for the improvement of the sector regulation.

Tender Process:
The ITU managed the tender process, which the following milestones:

• ITU and Anatel approval of tender related documents was concluded in 12 August 2010.
  
• ITU issued the Invitation to Tender to potential bidders on 16 September 2010 (18 companies of a pre-agreed list with Anatel and was published in the UN Business).
  
• A Mandatory Technical Visit was carried out in 5 October 2010, with the participation of 13 companies that expressed their interest in participating in the bid.
  
The deadline established by the ITU for the proposal submission was 17 January 2011.

• The evaluation work was carried out at ITU HQ in Geneva on 17 January 2011 and the Evaluation Group, official nominated by the BDT Director, was composed by representatives from ITU and Anatel.
  
The Evaluation Group concluded the evaluation work of the offers on Friday, 11 February 2011 and the Evaluation Report for the analysis and consideration of Anatel’s Board of Directors was presented to the Head of the Brazilian Delegation on the same day.

The Board of Directors of Anatel decided on the winning offer and on 24 May 2011 and ITU concluded contract negotiation with the selected company.

Selected Company:
The company who won the bidding process and was selected  is Advisia Management Consulting.

The company stated in its offer that through a Consortium with other two companies, Analysis Mason Consulting and Grant Thornton Auditores Independentes, it will be provided to ITU and Anatel the knowledge and necessary models and applications for the determination of cost-based values as the reference values for Interconnection rates of mobile services, operations leased lines and interconnection rates for the fixed services.

The company also stated that it will be provided a multidisciplinary team with expertise in the critical areas of the cost modeling analysis, IT development and economic theory analysis. According to the Bidder, the services of these other companies are complementary and by presenting their services and Products together they increase the efficiency of making technically feasible solutions available to ANATEL.

VALUE OF THE CONTRACT: approx. USD 8’000’000