A concession agreement is a contract between a company and a government that allows the company to operate their business in a certain location. The agreement contains details about who each party is and what the goal of the concession agreement is. It also mentions the proposed geographical location where business is to be conducted and what the nature of the business is. Another important aspect of the document includes terms and conditions surrounding protocols that can be used to modify, terminate, or extend the agreement.
The purpose of a concession agreement is to ensure that all involved parties are mutually benefitted by the terms of the agreement. It also ensures that they understand the scope of their roles and responsibilties under the contract.
Below is a list of common sections included in Concession Agreements. These sections are linked to the below sample agreement for you to explore.
AGREEMENT PBOA/SPB No. 150/2006 – ANATEL
AGREEMENT FOR CONCESSION OF SWITCHED
FIXED TELEPHONY SERVICE -
LONG-DISTANCE MODE - ENTERED INTO
AGÊNCIA NACIONAL DE TELECOMUNICAÇÕES
AND BRASIL TELECOM S.A.
By this agreement, the first party Agência Nacional de Telecomunicações , that is, the National Telecommunications Agency, hereinafter referred to as Anatel, an entity which is an integral part of the Brazilian Federal Government, and pursuant to Federal Law No. 9,472, of July 16, 1997, The General Telecommunications Law (LGT), responsible for exercising the Granting Power, hereby represented by its Deputy President Mr. PLINIO DE AGUIAR JÚNIOR , Brazilian, married, an engineer, holder of Identity Card (CI) No. 1.818.065 -IFP-RJ and enrolled with the Ministry of Finance’s Individual Taxpayers’ Registry (CPF/MF) under No. 025.211.057 -91, together with Board Member Mr. LUIZ ALBERTO DA SILVA , Brazilian, married, a lawyer, holder of Identity Card (CI) No. 322.597 SSP-DF, and enrolled with the Ministry of Finance’s Individual Taxpayers’ Registry (CPF/MF) under No. 001.265 -785-72, and, the second party BRASIL TELECOM S.A ., enrolled under Ministry of Finance’s Corporate Taxpayers’ Identification (CNPJ/MF) under No. 76.535.764/0326 -90, hereby represented by its CEO Mr. RICARDO KNOEPFELMACHER , Brazilian, divorced, an economist, holder of Identity Card (CI) No. 674.856 SSP-SP, and enrolled with the Ministry of Finance’s Individual Taxpayers’ Registry (CPF/MF) under No. 351.080.021 -49, and by its Vice-President of Regulatory Issues and Strategic Planning Mr. LUIZ FRANCISCO TENÓRIO PERRONE , Brazilian, married, an engineer, holder of Identity Card (CI) No. 003.259.885 -6 SSP-RJ, and enrolled with the Ministry of Finance’s Individual Taxpayers’ Registry (CPF/MF) under No. 008.719.406 -63, hereinafter referred to as the Concessionaire, pursuant to article 207, paragraph 1, of said General Telecommunications Law, hereby lawfully enter into this CONCESSION AGREEMENT , which shall be governed by the rules referred to below and the clauses as follows:
Chapter I – Purpose
Clause 1.1 . The purpose of this Agreement is the concession of Switched Fixed Telephony Service (STFC) designed for the public use in general, provided in the public system, in the National Long-Distance Service mode, for calls originating from the geographic area defined in clause 2.1., pursuant to the General Licensing Plan.
Sole Paragraph. It is understood that the Switched Fixed Telephony Service, provided in the public system in border and frontier areas, shall be the subject to this concession, in conformity with the regulation issued by Anatel, pursuant to the provisions included in the General Licensing Plan.
Clause 1.2. The Switched Telecommunications Service (STFC) is the telecommunications service, which, by means of voice and other signals transmission, is designed to the communication between determined fixed points by using telephony processes.
Clause 1.3. Upon Anatel’s prior approval, the Concessionaire may implement and exploit new services, devices or facilities related to the provision of the service subject to this concession.
Sole Paragraph. Any services, devices or facilities which, at Anatel’s judgment, are deemed as inherent in or supplementary to the service platform hereby granted, without characterizing any other service or type of service or any added value service, shall be deemed as related to the subject of this concession, subject to the provisions of the regulation, especially the provisions set forth in article 222 of the Brazilian Federal Constitution of 1988.
Clause 1.4. The Concessionaire is entitled to implement, expand and operate the telecommunications networks required for carrying out the service, as well as to its industrial exploitation, pursuant to regulation.
Clause 1.5. The obligation to meet the universalization and quality targets set forth in this Agreement is inseparable from the service provision.
Clause 1.6. The Concessionaire shall provide all requestors and users of the provided service with the facilities required for service provision, pursuant to regulation.
Clause 1.7. The Concessionaire shall provide free access to emergency public services set forth in the regulation, irrespective of the origin of the call from the Switched Fixed Telephony Service.
Chapter II – Service Coverage Area
Clause 2.1. The geographical area for the provision of the service subject to this concession is that comprising the territory(ies) included in Sector 26, listed in Attachment 2 to the General Licensing Plan.
Chapter III – Validity and Conditions for Amendments to Agreement