The original organizativa configuration of the telecommunications in the country was characterized for the extreme spalling of the power to grant concessions, in the form of exploration of the services, in the lines of direction and goals of magnifying or territorial covering of the services and in the establishment of tariffs. It competed to the Union, the States and Cities guarantee of the installment of the service, wants through the direct exploration, wants by means of grant of concessions, as established in the Constitution of 1946. The participation of foreign companies was predominant in this period. The Brazilian Telephonic Company (CTB), subsidiary of the Canadian Traction Light and Power Company concentrated, in 1957, two teros of the existing telephones in Brazil, which were located mainly in the areas of the States of Rio De Janeiro and So Paulo. The remain was distributed between the National Telephonic Company, branch office of the ITT (International Telephone and Telegraph) in the municipal Rio Grande Do Sul, subsidiary of the CTB in Minas Gerais and Espirito Santo and approximately the 900 existing concessionaires then. The fragmented organization of the sector at that moment in such a way reflected in the absence of coordination and common objectives of development and magnifying of the services, generating a situation of extreme precariousness not condizente with the forts governmental lines of direction of modernization of the infrastructure of the country, how much with the related concerns of territorial integration to the deepening of the iderio of the national security. This model remained until ends of years 60 despite, in the period that understands the decade, important alterations had been accomplished through the approval of the Brazilian Code of Telecommunications (1962) that it supplied to the bases normative actions (through the creation of the Contel) and executive of the State (with the creation of the Embratel, company that starts to operate part of the services of international linkings, what it characterized the first direct governmental intervention in the sector).
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