On April 1st, 1997, the National Government made public the Telecommunications Plan for the next 10 years. Such plan was prepared by a private consulting firm and experts from the Ministry of Communications. The Government expects to make this sector one of its priorities in the national development.

One of the main goals of the Plan is to reassign the functions of the different authorities in the telecommunications field and to project the growth of the area. It is estimated that the highest growth rates will be achieved in TV, Internet access, beeper and trunking subscriptions, with annual rates of 27.2%, 22.2%, 19.7% and 20.7%, respectively. Regarding the mobile cellular telephony, it is expected that the number of subscribers is tripled in 1999. A US$10 billion investment for the financing of all the different activities within the sector is foreseen.

Regarding basic services (i.e. local and long distance commuted basic telephony), it is expected it would reach a number of 24 lines per 100 inhabitants within the next 10 years, depending on the development of the social telephony programs promoted by the national government.

In regards to the TV subscription, which is included in the Plan as a major element for future development, the Commission of National Television, CNTV, issued resolution Agreement 14 through which the conditions for the operation and exploitation of such service are established. The concession to render these services will be granted by means of a public bidding, based on the requirements provided in the mentioned agreement and on the terms of reference that shall be published by the CNTV. The future operators shall broadcast a minimum of one hour of their own TV production per day, and shall reserve a channel for the transmission of the events originated from the Congress of the Republic. The operators must pay the Nation a one time fixed sum as payment for the possibility to exploit the service. In addition they shall pay to the CNTV the 10% of the total monthly gross income derived from the rendering of the service as well as a 10% of such income gained from the advertisement.

On the other hand, the CNTV through its Agreement 016 regulated the Unique Registry for Operators of the Public Service Television. The operators who wish to render the service must register in such Registry. Only those companies that are duly registered, can participate in the bidding process, be awarded the license and execute the corresponding concession agreement. Among other requirements, it is necessary to have a minimum authorized corporate capital of colombian pesos $5.000 million at the moment of filing the application for registration. It is expected that private channels in Colombia would be duly installed and rendering the TV service in January 1998.

Regarding trunking services, the terms of reference shall be prepared by the Ministry of Communications, once the new decree concerning the assignment of the corresponding channels is issued.

As to long distance services, its future has to be settled during this year. Recently, the Telecommunications Regulation Commission issued Resolution 063 of 1997 which authorizes local telecommunication companies, licensees of added value services and, in general, the private companies with necessary infrastructure, to render long distance services in situations of imminent risk.

Imminent risk is understood as serious damage or alteration which threaten or impede the continuous rendering of the service, such as the those produced by nature, catastrophic effects and accidents and by the act of man against the law. The situation should be declared by the Ministry of Communications, with the prior favorable opinion of the Expert Committee of the Regulation Communications Commission. In any event such authorizations will be temporary. Until the new licenses to render public services are granted to other operators, the only entity authorized to render such service is the state owned entity - TELECOM.

Finally, regarding beeper and paging services the Ministry of Communications is currently preparing the decree which will regulate them and which will determine the new frequencies to be assigned to the operators.

Prepared by Anamaria Arboleda and Gustavo Hoyos from Gomez Pinzon & Asociados. These notes are intended to provide only a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

GOMEZ PINZON & ASOCIADOS
Carrera 9 No. 73-24 Pisos 1, 2, 3 y5
Santafe de Bogota, Colombia

Telephone: 571 - 310 7055/5066
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