Telecommunications Regulation. CHILE Claro y Cia

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1 Telecommunications Regulation CHILE Claro y Cia CONTACT INFORMATION Matias de Marchena Claro y Cia Apoquindo 3721, piso 13 Las Condes, Santiago Chile What is the name and nature of the regulatory body(ies) in your jurisdiction? To which bodies (if any) are decisions appealed? The main regulatory bodies are the Ministry of Transportation and Telecommunications, the UnderSecretariat of Telecommunications ( SubTel ) and, with respect to free-to-air television broadcasting, the National Television Council. Appeals against decisions of these bodies are filed before Ordinary Courts. 2. Has your jurisdiction adopted the WTO Basic Telecommunications Agreement? If yes, with what exceptions, if any? 3. Are operators in your jurisdiction privately or publicly/state owned? Privately owned. 4. What are the primary differences between the regulation of wire line, wireless, satellite, cable and VoIP providers?

2 The differences are mainly technical. 5. Are broadcasters regulated separately from telecoms? Partially, yes. There is a separate regulation for free-to-air television broadcasters. 6. How are satellite earth stations and submarine cable landings regulated? Satellite earth stations may be located in Chile and must comply with the requirements set forth by the relevant Technical Norm (Resolution No of 1999), and the specific requirements of the relevant concession. All equipment, including stations and cables must comply with the safety requirements provided by SubTel. All telecom concessionaires and permit-holders are entitled to access international satellite and cable networks. 7. How is the radio spectrum generally regulated? The use and exploitation of the spectrum is given by the State to private parties by means of concessions, permits or licenses, which are granted by the Ministry, acting through SubTel. The main regulation is found in the General Telecommunications Act, the Radio Spectrum Plan and the SubTel rules and decrees. Concessions granted by Subtel are required to install, operate and exploit (a) public services, (b) intermediate services and (c) radio broadcasting and other free reception and transmission services. Concessions for free-to-air television services are granted by the National Television Council. Permits granted by Subtel are required to install, operate and exploit limited services and amateur services. Licenses granted by Subtel are required for limited services using experimental stations. 8. Are any operators granted exclusivity? No. As a general principle, more than one concession or permit may be granted for a specific type of service or for the same geographical area, except (i) in the case of free-to-air broadcasting services, and (ii) when there are technical limitations, such as mobile telephony. In these cases, concessions are granted through a public bidding process focused on the technical features of the project rather than on payments offered for the frequency to be used. 9. Are anti-competitive practices subject to regulation or general competition (e.g., antitrust) laws? Subject to general antitrust rules. Additionally, changes in ownership or control of a social communication medium must be informed to the Antitrust Court. 10. What services have been liberalized or designated as competitive services?

3 The General Telecommunications Act provides the free and equal access to all telecom services. Anyone can apply for a telecom concession, license or permit, complying with the requirements set forth in the applicable regulations. 11. Are there regulated tariffs or price lists? If so, for what types of services? No, except for regulated tariffs for landline and mobile telephony services. 12. Are there restrictions on foreign investment in any types of communications companies? If so, what are the restrictions? Foreign entities and individuals can apply for telecom concessions, license and permits, through legal entities organized and domiciled in Chile, regardless of their capital structure. General foreign investment rules apply. The chairman, managers, administrators and legal representatives of radio and television licensees must be Chilean. Directors of these licensees may be foreign, provided that they do not form a majority of the relevant board of directors. 13. What are the approval processes for mergers and acquisitions? Do these vary by type of operator? Prior approval by Subtel or the pertinent authority is required for the transfer, assignment, lease or granting of right of use, under any title, of a concession or permit. 14. Is interconnection between carriers mandatory? 15. Are interconnection fees/rates regulated? 16. Must carriers make available network components to competitors? If so, what are fees/prices based on cost, or market rates? Subject to parties negotiation and requirements set forth by SubTel in the relevant concession, license or permit. A bill is currently being discussed in Congress that seeks to force concessionaires to allow other concessionaires to install aerials in the former s towers. There is vocal opposition from the industry to this bill. 17. Is there an obligation to serve all customers? If yes, is there a fund to subsidize eligible carriers? Which carriers contribute to the fund? Which carriers are

4 eligible to receive these funds? Are broadband services subsidized or otherwise promoted through tax or other incentives? Yes (public service customers located outside the relevant concession area are entitled to be served, if they pay the costs of the extension or reinforcement works). Subsidies are only available for specific projects determined by the Telecommunications Development Council. The subsidies are funded with State resources. 18. Are there mandatory requirements to customer agreements (subscriptions, etc.)? 19. Are there any general or telecommunication specific requirements as to data retention? Providers of public service must have information available for purposes of determining charges to customers and upon request from SubTel. 20. Is number portability mandatory? If so, for which types of carriers (e.g., wireline, wireless, voice over internet protocol)? Currently, portability is not mandatory in any service. In August 2009, SubTel issued a resolution establishing a plan to implement a system of mandatory portability in the near future. Portability will be applicable first to mobile telephony services, and later to landline telephony services. 21. Is equal access dialing selection mandatory? If yes, for which types of carriers? For long distance telephony services. 22. Is access or other contributions ( ADCs ) required of new entrants? No. Normal access and interconnection rules and obligations apply to new entrants. 23. Is VoIP regulated? If yes, to what extent? Decree 484 of 2007 sets forth (i) procedure to obtain VoIP concessions, (ii) interconnection rights, (iii) requirements of customer agreements, (iv) relationship with internet provider, (v) relationship with customers, and (vi) numbering. 24. Are any major changes to telecommunications laws expected in the near future?

5 The current government has set its goals on (i) achieving portability (see above), (ii) extending the number of services subject to public bidding to enhance competition in the market, and (iii) regulating new wireless technologies such as WiMax and LTE. 25. Is resale of telecom services permitted? If yes, is this activity regulated? What is the process to become a reseller? Are foreign companies permitted to be resellers? No.

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