Oi S.A. - Notice To The Market

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Apr 23, 2014, 12:07 ET

RIO DE JANEIRO, April 23, 2014 /PRNewswire/ -- Oi S.A. ("Oi") and its operational subsidiary Telemar Norte Leste S.A. ("Telemar") inform their shareholders and the market in general that, pursuant to ANATEL's approval, they have readjusted the rate baskets for their local and long-distance fixed-line services by 0.651%.

Pursuant to their concession agreements, the readjustment amount is calculated using the variation of the Telecommunications Services Index (Indice de Servicos de Telecomunicacoes– IST) (the "industry index") of 5.42% from October 2012 to November 2013, as reduced by the average Factor X (a productivity factor), calculated by ANATEL, of 4.524%.

Beginning on April 17, 2014, the net local interconnection rates (TU-RL) were adjusted by 10.69%, to the net amounts of R$0.03554 for Telemar and R$0.03904 for Oi.

The approved rates became effective on April 18, 2014, as follows:

Local Services – Gross Rates (R$ - base RJ)	Current Rate	Adjusted Rate
Habilitation	43.46	46.28
Residential Subscription	43.53	43.41
Non-residential and "Trunk" Subscription	77.46	77.25
AICE Subscription	14.35	14.31
Local Minute (Basic Minutes Plan)	0.11919	0.13193
VCA (Basic Minutes Plan)	0.23839	0.26387
Local Minute (PASOO)	0.04626	0.05121
VCA (PASOO)	0.18506	0.20484
Completion Rate PASOO	0.18506	0.20484

Long Distance*

Distance (Km) – R$	Current Rate	Adjusted Rate
0 – 50	0.16916	0.16746
50 -100	0.43979	0.43538
100 - 300	0.62252	0.61628
+ 300	0.73682	0.74945

* Rates per minute for national long-distance calls between 9:00 a.m. and 12:00 p.m. and between 2 p.m. and 6 p.m. on weekdays (gross rates – base RJ – differentiated hours).

The credit amount for the use of public telephone booths was adjusted by 0.40%, to R$0.126, net of taxes and social contributions.

The fixed line-to-mobile rates (VC1, VC2, VC3) and VU-M rates were not adjusted.

Bayard De Paoli Gontijo
Chief Financial Officer and Investor Relations Officer
Oi S.A.

SOURCE Oi S.A.