According to Resolution 086 of the Commission of Telecommunications ("CRT") long distance licenses will be granted on an open competition basis. Anyone that complies with the requirements set out by the Commission of Telecommunications, would be eligible as an operator of long distance telephone services in Colombia.

General conditions under which the licenses are granted:

  • The licenses will be granted for a period of ten (10) years, upon the initiation of operations, and said term may be extended for an additional ten year period.
  • The long distance operators will be subject to a regulated tariff system up to December 31, 1999, and consequently, tariffs would have to be in accordance with the maximums and minimums established by the CRT. After said date, there will be no tariff restrictions.

Main requirements imposed by Resolution 86 of 1997 on the new operators:

  • Payment of the Concession Fee. This fee will be determined by the CRT before September 15, of 1997. However, it has been stated verbally by the members of the Colombian government that it will rank between US$140.000.000 and US$180.000.000.
  • Once the licenses have been granted, the operators must pay to the Communication Fund ("Fondo de Comunicaciones") five percent (5%) of their gross income, which will be distributed as follows : (i) during the first three years, to TELECOM (governmental entity which presently has the only licence to operate long distance telephone services in Colombia) to attend its social obligations with low income tiers; (ii) in the fourth year, 3% will be destined to TELECOM and 2% to the Communications Fund, and (iii) for the eleventh year, the total amounts will be destined to the Communications Fund to attend low income tiers telephonic projects.
  • The new operators must constitute a bid bond issued by a banking institution, or by an insurance corporation legally authorized to operate in Colombia, in favor of the Ministry of Communications, for an amount of US$30.000.000 and for a term equal to the concession term.
  • The new operators must be incorporated as public services corporations ("Empresas de Servicios P£blicos") for the rendering of long distance services.
  • The new operators must have a partner or an operation agreement, during the entire term of the concession, with a long distance operator that during the year before the granting of the concession, has transmitted at least 400.000.000 minutes of international long distance services;
  • The new operators must have either directly, or through its partners, affiliates or subsidiaries, at least 150.000 telephone lines in Colombia.
  • The new operators must establish centers for the rendering of long distance services to low income populations ("Centros Integrados de Telefon¡a Social") in accordance with the guidelines established by the Resolution.
  • The new operators may not have direct participation in the capital of another operator and may not have indirect participation of more than 20% in the capital of another operator.
  • The new operators may not have more than 35% of the total number of telephone lines in operation in Colombia on the date of the concession petition nor, at any time, during the concession term, more than 40% of the total number of telephone lines in Colombia.

Prepared by Ana Maria Carrasquilla from Gomez Pinzon & Asociados, Bogota, Colombia.

These notes are intended to provide 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 y 5
Santafe de Bogota, Colombia

Telephone : 571- 3107055/ 5066
Facsimile : 571- 3106646/6657
http://ourworld.compuserve.com/homepages/GOMEZP_LAW