The Telecommunications Sector has undergone tremendous growth since the establishment of the B Band cellular companies in 1997, through the privatization of Telebras in 1998 and the period of accelerated investments made by the incumbent telecommunications operators to meet Anatel goals. The telecom model based upon competition and universality led to the establishment of “mirror” companies (to compete with incumbent fixed wire line operators), limited service operators and PCS operators. A period of consolidation and rationalization is following 3 to 5 years of significant foreign direct investment and capital markets activity for the sector.