RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.38
7March 1996
ORGANIZATION(96-0867)
Original: Spanish Negotiating Group onBasic Telecommunications
COMMUNICATION FROM COLOMBIA
Response totheQuestionnaire onBasic Telecommunications
Theattached communication iscirculated tothemembers oftheNegotiating Group onBasic
Telecommunications attherequest ofColombia.S/NGBT/W/3/Add.38
Page2
Questionnaire onBasic Telecommunications
PartI
Definition andMarket Structure
Definition
1. What areconsidered tobebasic telecommunications under yourregulatory regime? How
aretheydefined? How doesyour regulatory regime define thatwhich isnotconsidered basic
telecommunications?
Under theColombian regime, basic telecommunications areconsidered tobebasic
telecommunications services, which cover carrier services andteleservices.
Carrier services areservices which provide thenecessary capacity forthetransmission ofsignals
betweentwoormoredefinedpointsonthetelecommunicationsnetwork.Theycomprisecircuit-switched
orpacket-switched network services ornon-switched network services. They include lonepairsand
dedicated circuit leasing services.
Teleservices areservices which inthemselves provide fullcapacity forcommunication between
users, including terminal equipment functions. They include telephone, bothfixed andmobile and
cellular mobile services, telegraphy andtelex.
Telecommunications, asanactivity, isdefined astheestablishment ofatelecommunications
network forprivate orexclusive usetomeetprivate telecommunications need, without being connected
totheStateswitched networks ortoother private telecommunications networks. Foralllegalpurposes,
telecommunications activities areassimilated toprivate services.
Law142of1994 defines household public telephone services asbasic telecommunications
services, oneoftheobjects ofwhich isswitched voice transmission through theswitched telephone
network withgeneral access tothepublic, inthesame municipality. These services, likelongdistance
telephone services, bothdomestic andinternational, aresubject tothespecial regime setoutinLaw142
andother regulatory provisions.
Services notconsidered asbasic telecommunications areclassified asfollows:
Broadcasting services: Those inwhich communication isinonedirection tomore thanone
reception points, simultaneously. They include radio andtelevision broadcasting.
Telematics services: Those using basic services toexchange information between terminals
withprotocolsforopeninterconnectionsystems.Theyincludetelefax,publifax,teletex,videotex
anddatafax services.
Value-addedservices:Thoseusingbasic,telematicsorbroadcastingservicesoranycombination
thereof andproviding fullcapacity toforward orexchange information, adding other facilities
totheservice orsatisfying specific newtelecommunications needs. They include access,
forwarding, treatment, depositing andretrieval ofstored information, electronic transfer of
funds, videotex, teletext andelectronic mailservices. Value-added services areonlyregarded
assuchwhen theycanbedifferentiated from basic services.S/NGBT/W/3/Add.38
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Auxiliaryassistanceservices:Telecommunicationsservicesconnectedwithotherpublicservices
forthepurposes ofthesafety ofhuman life,Statesecurity orreasons ofhumanitarian interest.
They include radio assistance services forthesafety ofhuman life,meteorological aidsand
airandseanavigation.
Special services: Those intended, onanon-profit making basis andwithout anyform of
marketing, tomeetcultural orscientific needs. They include radio amateur, experimental and
other services, andservices connected withindustrial, scientific and/or technological research.
2. Doesyourregulatoryregimedistinguishbetweennetworks(facilities)andservicesindefining
basic telecommunications? Ifso,howisthisdistinction made?
There isaregime forservices andanother fornetworks.
Thelawdefines"Statetelecommunicationsnetwork"asalloftheelementspermittingconnections
betweentwoormoredefinedpointstoestablishtelecommunicationbetweenthem,andsupplyingservices
tothepublic. Thenetwork isformed bytheswitch-over, transmission andcontrol equipment, cables
andotherphysicalcomponents,theuseofsoftware,andthepartoftheelectromagneticspectrumassigned
forthesupply ofservices andother telecommunications activities.
Theelectromagnetic spectrum isowned exclusively bytheState.
Services aredefined andclassified asstated intheprevious reply.
3. Are there any networks orservices which would beconsidered tobebasic
telecommunications within thescope oftheGATS definition which would notbesoconsidered
byyour national definition? Ifso,what arethey?
Thenational definition ofbasictelecommunications services isinaccordance withthedefinition
ofbasic telecommunications intheGATS. Thefacsimile service isregarded asatelematics service.
Market structure
4. Listanybasic telecommunications subsectors orcategories which arereserved tosupply
bymonopoly orexclusive supplier(s).
Domestic andinternational longdistance basic services aresupplied bytheEmpresa Nacional
deTelecomunicaciones (TELECOM). Asfromthefirstquarter of1997, theseservices maybesupplied
bytwoother operators, under theterms indicated inthereply toquestion 5,below. Cellular telephone
services aresupplied byseveral operators, inthree geographic areas, eachareawithtwooperators
supplying onacompetitive basis. These operators haveexclusive rights offiveyears aftertheconcession
isgranted.
5. Does your regime designate oneoralimited number ofmonopoly/exclusive suppliers to
supply anybasic telecommunications nationally, onageographical basis, orforparticular market
segments? Howisit(orthey) constituted (e.g.government ministry oragency, wholly government-
owned corporate entity, company partly owned bythegovernment, privately owned)?
Asfromthefirstquarterof1997,basicinternationaltelecommunicationsserviceswillbesupplied
byTelecom, incompetition withtwonewoperators, which maybeprivately owned (private) orpartly
government-owned (joint venture). Forseven years there willbenoother operators.S/NGBT/W/3/Add.38
Page4
Cellular telephone services aresupplied bysixoperators. Three arejointventures andthree
areprivate. Theservice issupplied byaprivate operator, incompetition withajointventure, ineach
ofthethree geographical service areas intowhich thecountry isdivided forthispurpose. Forfive
years, from thestartoftheconcession, there willbenonewoperators.
6. Isforeign equity participation orownership ofmonopoly orexclusive suppliers permitted?
Ifso,what isthemaximum percentage share allowed andwhat isthecurrent levelofidentifiable
foreign participation?
Telecom isaState nationwide industrial andcommercial enterprise andiswholly
government-owned. Nopartial orcomplete change asregards equity participation isenvisaged.
Thetwonewdomesticandinternationallong-distancebasicservicesoperatorsmaybeColombian
enterprises,withprivateorjointventures.Foreignequityparticipationisallowed,withoutanymaximum
percentage.
There isforeign equity participation inthecellular telephone service operators, boththejoint
ventures andtheprivately owned, indiffering proportions.
Other basic services maybesupplied bypublic national entities, whether privately-owned or
jointventures, under asystem ofregulated competition. Foreign equity participation inthecaseof
privately-owned operators orjointventures isnotlimited, butissubject inallcases tocompliance with
thelawregulating foreign investment (Law 9of1991 andtheregulations thereto).
7. Ifyour regime isgenerally characterized asnotpermitting competition, please indicate:
(a) Ifcertain activities orcategories ofwhat could beconsidered basic
telecommunications arenotreserved tothemonopoly, e.g.facsimile, telex, data
transmission, mobile, satellite services;
(b) arethere any other means through which foreign suppliers ofbasic
telecommunications are ormay participate inthe supply ofbasic
telecommunications, e.g,sub-contract orbuild-operate-transfer arrangements with
themonopoly suppliers.
Afeature oftheColombian regime isthatitpermits competition. Inaddition, there areother
means fordomestic orforeign private suppliers toparticipate inthesupply oftelecommunications by
means ofjointventures withstateenterprises supplying suchservices (Law 37of1993).
8. Please listandbriefly describe anyintergovernmental agreements, bilateral orotherwise,
thatyourGovernment hasentered intorelating tothesupply ofbasic telecommunications networks
andservices.
Colombia isaState party toINTELSAT andINMARSAT. Inaddition, theinternational
agreements onvalue-added services havebeenconcluded onlyintheGroup ofThree (Colombia, Mexico
andVenezuela) andanagreement isbeing prepared inthisconnection intheAndean Group.S/NGBT/W/3/Add.38
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PartII
Competition
Forthesubsector andcategory headings inSections AandB,thefivequestions listed
below should beaddressed foreachsubsector andcategory thatyoudescribe. Recognizing that
subsectors andcategories mayoverlap, please keepinmind thatitistheintroduction ofcompetition
andthewayithasbeen introduced thatshould determine howtoselect which subsectors and
categories arecovered intheresponses.
(i) Overview. What arethemain government policies andregulations regarding the
competition inthissubsector orcategory? Canforeign suppliers participate in
thesupply ofbasic telecommunications inthissubsector orcategory?
Local teleservices aresupplied competitively bystateenterprises, private companies
orjointventures. There isnolimitonforeign investment.
Law142of1995establishes acompetitive regime, which precludes thepossibility of
anenterprise abusing itsmarket power.
Domestic andinternational long-distance teleservices aresupplied byastateenterprise
atthepresent time, butasfromMarch 1997 theywillalsobesupplied competitively
bytwonewprivate operators orjointventures without anylimits onforeign investment.
Thecarrier services regime isbeing elaborated.
Thetelecommunications legislation inColombia islisted below.
Legal regime fortelecommunications inColombia
- Law 72of1989, defining newconcepts andprinciples ontheorganization of
telecommunications inColombia andontheservices licensing regime andconferring
special powers onthePresident oftheRepublic.
- Decree-Law 1900of1990, amending therulesandregulations ontelevision andrelated
activities andservices.
- Law37of1993, regulating thesupply ofcellular mobile telephone services, the
conclusion ofpartnership agreements andjoint ventures inconnection with
telecommunications andissuing other provisions.
- Law142of1994, establishing theHousehold Public Services Regime andissuing other
provisions.
- Law182of1995,issuingregulationsonthetelevisionservice,formulatingdevelopment
policies, democratizing access toit,establishing theNational Television Commission,
promoting thetelevision industry andtelevision activities, establishing rules forthe
procurement ofservices, restructuring bodies inthesector andissuing other provisions
ontelecommunications.
- Decree1794of1991,issuingrulesonvalue-addedandtelematicsservicesandregulating
Decree 1900 of1990.S/NGBT/W/3/Add.38
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- Decree930of1992,regulatingtheestablishmentofprivatetelecommunicationsnetworks
andutilization oftheradio spectrum forsuchpurposes.
- Law80of1993, issuing theGeneral Government Procurement Statute.
- Resolution 28of1995oftheTelecommunications Regulatory Commission, regulating
licensingfortheestablishmentofdomesticandinternationallong-distancepublicservice
operators andtherequisite electromagnetic spectrum, indicating thelicensing fees,
establishing thegeneral requirements touseStatetelecommunications networks, setting
accessandinterconnectioncharges,issuingprovisionstopromotecompetition,adopting
measures toprevent abuse ofmarket power andprotect theuserandissuing other
provisions.
(ii) Modes ofsupply. Inyourview, howdotheGATS modes ofsupply (cross-border,
consumption abroad, commercial presence andpresence ofnatural persons apply
tothissubsector orcategory)? What kinds ofrequirements, conditions or
limitations areapplied inthissubsector orcategory which relate toeach mode
ofsupply?
Note: Responses onmodes ofsupply should notnecessarily belimited tomeasures
which might relate tomarket access ornational treatment asdefined bytheGATS.
Information provided mayhelpadvance discussions onhowthemodes ofsupply,
particularly cross-border andconsumption abroad, relate tobasictelecommunications.
Cross-border
There isnolimitation ontheextent towhich aservice issupplied between aninternational
basic services operator dulyauthorized inColombia andaninternational basic services operator duly
authorized abroad.
Theaccounting ratesasbetween connecting administrations areapplied onequitable terms and
inthelight oftherelevant ITUrecommendations andtheprinciples setoutintheInternational
Telecommunications Regulations.
Consumption abroad
Nocall-back oninternational traffic ispermitted.
Commercial presence
Aconcession orlicence issued bytheMinistry ofCommunications isrequired.
Only enterprises legally established inColombia canobtain suchauthorizations.
Licensed companies supplying basicservices mayinclude foreign investment, which istreated
thesame asinvestment byColombian nationals.
(iii) Market access. What kind oflimitations onmarket access areapplied? (I.e.,
arethere anyquantitative limitations on,oreconomic needs testssupplied to,the
number ofsuppliers? Arethere anylimits onthetotalvalue oftransactions, total
number ofoperations, quantity ofoutput, orthetotal number ofpersons that
maysupply basic telecommunications orbeemployed byasupplier? ArethereS/NGBT/W/3/Add.38
Page7
anyrestrictions orrequirements regarding typeoflegal entity thatmaysupply
basic telecommunications? Arethere anylimits onforeign ownership orequity
participation?)
TheStatewillintervene inpublic services, pursuant totherulesoncompetition,
inthecontext ofArticles 334,336and365to370oftheConstitution, forthefollowing
purposes:
- Toguarantee thequality ofthepublic service andultimate availability toensure
anenhanced quality oflifeforusers.
- Toprovide coverage atalltimes bysystems thatwillmake upforusers'
inability topay.
- Toprovide efficient service.
- Toensure freedom ofcompetition andnon-abuse ofmarket power.
- Toobtain verifiable economies ofscale.
- Toprovide mechanisms toguarantee service access forusers andtheir
participation inthemanagement oftheservice supplied.
- Toestablish asystem ofproportional charges forthelower income sectors,
inaccordance withtheprinciples ofequity andsolidarity.
There arenolimits onthenumber ofsuppliers orlocaltelephone services, butoperators are
subjecttocompliancewithcorporatemanagementgoals,servicequalityandexpansionofservicecoverage
and,ingeneral, theregime defined.
Domestic andinternational long-distance teleservices aresupplied byastateenterprise atthe
present time, butfrom March 1997 onwards theywillalsobesupplied competitively bytwonew
privately-owned orjointventure operators, without anylimits onforeign investment.
Cellular telephone services aresupplied byoneprivate operator andonejointventure ineach
ofthethree regions.
There isnolimitontransactions, totalnumber ofoperations, etc.
Theforeign investment regime doesnotplacerestrictions onforeign equity participation. Public
telecommunications operators areauthorized toform companies orassociations withforeign natural
orlegalpersons.
(iv) National treatment. What kindoflimitations onnational treatment areinplace
extending toforeign suppliers treatment lessfavourable thanthatfordomestic
suppliers? (E.garepreferences given todomestic suppliers orrestrictions or
obligations imposed onforeign suppliers with respect toanyprocedures or
regulations, including licensing? Arethere anylimitations onthenationality or
residence ofmanagers, directors orboard members? Arethere anyrestrictions
onforeign ownership oflandorfacilities?)S/NGBT/W/3/Add.38
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There arenolimitations onnational treatment, butevery lawfully established
enterprise inColombia issubject tothesame treatment, regardless offoreign equity
participation.
(v) Licensing. Iflicensing isrequired inthissubsector orcategory, briefly describe
theprocedures concerned, andexplain themain requirements, criteria andfees
applied. What aresome oftheprincipal terms andconditions onlicensees, once
alicence isobtained?
Note: Licensing isintended tobeunderstood inabroad sense, toinclude processes
suchasapproval, authorization, registration orcertification, asapplicable.
Inallcases, alicence issued bytheMinistry ofCommunications isnecessary.
Theprocedure forselecting newdomestic andinternational longdistance telephone service
operators, defined byTelecommunications Regulatory Commission (Resolution 28of1995) isby
international public auction. Asimilar procedure hasbeenusedinawarding concessions forcellular
mobile telephone services.
Suppliers oflocal telephone services need anoperating licence bytheMinistry of
Communications. Such operators aresubject tocompliance withmanagerial goals, service quality
andexpansion ofservice coverage.
A. Subsectors
Foranysubsector inwhich competition ispermitted inyour regime (i.ewhich arenot
reserved toamonopoly orexclusive suppliers), answer questions (i)through (v)above, as
applicable. Thefollowing listofsubsectors isconsidered illustrative andshould besupplemented
withanysubsectors withanyother subsectors orsub-activities which youmaywishtodescribe.
(a) Voice telephone services
(b) Packet-switched datatransmission services
(c) Circuit switched transmission services
(d) Telex services
(e) Telegraph services
(f) Facsimile services
(g) Private leased circuit services, and
(o) Other
Thefollowingaresomeadditionalexamplesofbasictelecommunicationsnetworksorservices
notexplicitly listed in(a)-(g) and(o)above, forwhich responses mayberelevant: voice/non-voice
services using domestic/international private leased circuits; cable-TV-related voice telephone
networks andservices; domestic/international satellite services andsatellite links/capacity;
analogue/digitalcellularmobilenetworksandservices;PCSnetworksandservices;pagingservices;
mobile dataservices; fixed line/wireless local access; local/long distance linelinks; local/longS/NGBT/W/3/Add.38
Page9
distance switching; international switching andother international gateway facilities. Whereas
some ofthese might beconsidered tofallunder (o)above, some might alsobeconsidered tobe
activities falling within subsectors (a)-(g).
Thesame principles aswere described above fortelephone services areapplied toallbasic
services.
B. Categories
Foreachofthecategories thatfollow inwhich competition ispermitted, answer questions
(i)through (v)above, asapplicable, aswellasthespecific questions listed under agiven category.
Local/long distance/international
1. How arelocal anddomestic longdistance distinguished ordefined?
Alocalservice isaservice supplied between users inthesame municipality.
Adomestic longdistance service isonesupplied tousers indifferent municipalities (between
places inColombian territory).
2. Arethere anyregulatory orother distinctions between domestic (local andlongdistance)
andinternational networks andservices andbetween thesuppliers ofbasic telecommunications
inthese market segments? Ifso,what arethey?
ColombianlegalprovisionsregulatetheinstallationandoperationofnetworkswithinColombian
territory andthesupply ofservices within Colombian territory andconnected toforeign countries.
Onlyoperators authorized inColombia tosupply basic international longdistance services cansupply
services todomestic users connected toforeign countries.
Thefollowing rules apply withregard tonetworks andradio spectrum utilization:
Decree 1900 of1990:
Article 14.TheState telecommunications network consists ofalltheelements permitting
connections between twoormore defined points toestablish telecommunication between them, and
supplying services tothepublic. Thenetwork isformed bytheswitch-over, transmission andcontrol
equipment,cablesandotherphysicalcomponents,theuseofsoftware,andthepartoftheelectromagnetic
spectrum assigned forthesupply oftelecommunications services andother activities.
Article 15.TheStatetelecommunications network alsoconsists ofthose networks forwhich
installation,useandoperationisauthorizedtoprivatelegalornaturalpersonsforthepurposeofoperating
telecommunications services under theconditions setoutinthisDecree.
Paragraph. The Government may authorize theinstallation, useoroperation of
telecommunications networks, eventhough State telecommunications networks already exist.
Article 19.Thepowers tomanage, administer andcontrol theelectromagnetic spectrum
comprise, inter alia,planning andcoordination, establishment ofthefrequency table, frequency
assignment andverification, theissue ofpermits tousethem, protection anddefence oftheradio
spectrum, technical verification ofradio-electric emissions, theestablishment oftechnical conditions
forterminal equipment andnetworks which usetheradio spectrum, detection ofirregularities andS/NGBT/W/3/Add.38
Page10
disturbances andtheadoption ofmeasures forproper streamlined useoftheradio spectrum, andfor
useintheevent ofdisturbances orirregularities.
Article 20.Utilization ofradio frequencies requires prior authorization bytheMinistry of
Communications andpayment ofthecorresponding fees. Anyexpansion, extension, renewal or
modification oftheconditions requires anewprior andexpress authorization.
Authorization touseradio frequencies shallbeissued forafixedperiod which maynotexceed
20years andmayberenewed forthesame period astheinitial period. Inthecaseofbroadcasting
andspecial services, itmaylastaslongastherespective concession orauthorization.
Article 21.TheMinistry ofCommunications shallcoordinate theinternational useoftheradio
spectrum utilization, bearing inmind therules andstandards applicable ininternational
radiocommunication regulations.
Article 22.Theestablishment, installation, operation, modification, application, renovation
andutilization oftheState telecommunications network orofanyofitsparts, areregarded asbeing
inthepublic interest.
Article 23.Theinstallation, expansion, renewal, extension ormodification oftheState
telecommunications network requires priorauthorization fromtheMinistry ofCommunications. This
isdifferent fromanauthorization orlicence tosupply telecommunications services andmaybeingeneral
incharacter ifitisincluded inaplanadopted bytheMinistry ofCommunications; itmayalsoinclude
oneormore oftheoperations described above.
Toissuesuchauthorization, theMinistry ofCommunications mayonlytakeaccount oftechnical
reasons.
Asregards access tosatellite capacity, thefollowing rulesapplies, ascontained inDecree 2122:
"Article 1.Itisthefunction oftheMinistry ofCommunications:
...
8.Toadminister, allocate andmanage thespace segment andsatellite up-link anddown-link
bothnationally andinternationally. Thisfunction oftheMinistry isintheprocess ofbeing regulated."
Wire-based
TheStatetelecommunications network isformed bytheswitch-over, transmission andcontrol
equipment,cablesandotherphysicalcomponents,theuseofsoftware,andthepartoftheelectromagnetic
spectrum assigned forthesupply ofservices andother telecommunications activities.
Radio-based
Note: Please address alltypes ofrelevant radio-based telecommunications including satellite links,
access tosatellite capacity, theVSAT, mobile cellular communications, paging, mobile dataservices
andother radio communication systems. Recognizing thatwire-based or"fixed" networks canbe
radio based inpart,responses under thiscategory should relate toanyrequirements specifically related
toradio-based elements ofnetworks orservices.S/NGBT/W/3/Add.38
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Theelectromagnetic spectrum isowned exclusively bytheState andisadministered and
controlled bytheMinistry ofCommunications. Radio frequency utilization, together withany
broadening, extension, renewal ormodification oftheconditions, requires prior express permission
from theMinistry ofCommunications.
Resale basis
3. Doyourregulationspermitinternationalresaleofprivateleasedcircuitcapacityifconnected
tothepublic network? Ifso,atoneend? Atbothends? Under what conditions? Isresale of
switched voiced capacity permitted?
Noresale ofanyservice, under anymodality, ispermitted. Thismeans thatonlyoperators
authorized tosupply aservice cansellthatservice tothirdparties.
4. Isresale ofprivate leased circuit excess capacity permitted? Ifso,under what conditions?
Maybasic telecommunications beresold tomake them available tothird parties forwhich basic
telecommunications isthispermitted?
Resale ofprivate leased circuit excess capacity isnotpermitted.
Facilities-based
5. May basic telecommunications suppliers (foreign anddomestic) construct andoperate
their ownnetworks orinvest inconsortia toconstruct andoperate suchfacilities? Ifnot,what
organizations arepermitted toconstruct andoperate basic telecommunications network
infrastructures?
Operators authorized inColombia tosupply basic services mayconstruct andoperate their
ownnetworks.
Public telecommunications operators areauthorized toform companies orassociations with
foreign persons toinstall andoperate network infrastructures, butthepublic operator retains ownership
oftheservice inallcases.
Public/non-public supply
6. Does yourregime make distinctions between suppliers ofpublic switched andnon-public
basic telecommunications? Ifso,how?
Allsupplies ofbasic services, including switched ornon-switched carrier services (transport
information) areconsidered aspublic service suppliers, provided theysupply basic services tothird
parties.
Thenetworks setupbynatural orlegalpersons fortheirownexclusive usewithin Colombian
territory, without supplying services tothird parties andwithout connection totheState
telecommunications network, donotformpartofthisnetwork and,generally speaking, itispermitted
toinstall andusethem.
Private networks onlyrequire prior permission when theyusetheradio spectrum, when they
establish aconnection withforeign countries (inthiscaseinternational communication must always
bethroughatelecommunicationsservicesoperatorauthorizedtosupplybasictelecommunicationsservices
connected toforeign countries) orwhen networks usesatellites.S/NGBT/W/3/Add.38
Page12
7. What basic telecommunications doyourregulations require, explicitly orineffect, tobe
made available tothepublic generally?
Allbasic telecommunications services mustbemade available tothepublic ingeneral. Free
access totheuseoftelecommunications services isarightofthecitizen.
Entities supplying public telecommunications services areunder anobligation toensure that
theservice issupplied continuously andefficiently, without abuse oftheenterprise 'smarket power
vis-à-vis theuserorthirdparties.
Again, anenterprise mustfacilitate access andinterconnection byother enterprises orentities
thatsupply public services oraremajor users thereof tothefacilities usedtoorganize andsupply the
services inquestion (Law 142,Article 11).
8. What basic telecommunications doyourregulations permit tobesupplied onanon-public
basis (i.e.notrequired tobemade available tothepublic generally)?
Private networks, inother words, those setupforprivate exclusive use,cannot beusedto
supply services tothirdparties.
Whenever atelecommunications service isprovided toathirdparty, thetermusedispublic
service ornetwork.
9. What obligations areresponsibilities areincurred bystatus asapublic basic
telecommunications supplier andunder what conditions? E.g.what kinds of"common carrier"-
likeobligations areimposed (e.g.withregard touniversal service), andonwhom?
Common carriers aresubject toanadministration andperformance check, thepurpose ofwhich
istomake theobjectives ofthose supplying public services coincide withsocial requirements and
structural improvement oftheservice (Law 142,Article 45).
TheTelecommunicationsRegulatoryCommissiondefinesthecompulsorycriteria,characteristics,
indicators andmodels foradministration andperformance evaluation.
InthelightoftheTelecommunication Regulatory Commission 'sguidelines, enterprises submit
ashort, medium andlongtermadministration andperformance plantotheMinistry ofCommunications
forapproval.
TheOffice oftheSuperintendent ofPublic Services verifies compliance withtheadministration
andperformance plan.
10. What, ifany,restrictions arethere onorganizing andoffering aprivate network bya
telecommunications supplier?
Onlybasic services suppliers areauthorized toprovide network capacity (carrier services) for
theestablishment ofprivate networks bythirdparties. Private networks mayalsobesetupwithelements
ofthenetwork ownership rights, bearing inmind thematters setoutinthereply toquestion 6above.
11. Istheoperation ofpublic pay-phones reserved tomonopoly orexclusive suppliers?
Theoperation ofpublic pay-phones isnotconsidered anindependent service butaspartof
thetelephone services (local, longdistance orcellular mobile) andaccordingly thesupply regime is
thesame asforthelatter.S/NGBT/W/3/Add.38
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PartIII
Regulatory Issues
Inrespondingtothequestionsinthissection,participantsareaskedtoprovidespecificreferences
tothesource orstatus ofthemeasures concerned (e.g.where possible, acitation ofthelaw,regulation,
rule,guideline, decision ordecree).
Relationship between regulatory andoperational functions
1. Doanybasictelecommunicationssuppliersbecomeinvolved,directlyorindirectly,inmaking
regulatory policy? Enforcement ofregulations? Informulating standards orenforcing standards?
There isnolegalprovision establishing supplier participation inmaking regulatory policy or
anyother kindofrule.
Inpractice, suppliers andusersareinformally consulted bythebodies responsible forregulating
thesector.
2. Isyourregulatory authority (orauthorities) alsoresponsible forformulating standards?
Forenforcing standards?
TheMinistryofCommunicationsisresponsibleforformulationofandcompliancewithtechnical
andoperational standards relating tonetworks, radio spectrum utilization andnon-household
telecommunications services.
TheTelecommunicationsRegulatoryCommissionisresponsibleforregulatinghouseholdpublic
telecommunications services, which include localanddomestic andinternational longdistance telephone
services.
TheOffice oftheSuperintendent ofPublic Services isresponsible forenforcing thestandards
connected withoperating andadministering suchservices.
TheTelevision Commission isresponsible forregulation andcontrol ofthisservice.
3. How many levels ofgovernment (e.g.national, regional, State, local) haveresponsibility
forregulation affecting basic telecommunications? Please identify anddescribe relevant levels
ofgovernment authority. Arethere anyprocedures enabling suppliers toresolve questions or
disputes theymayhaveortoappeal adecision withtheregulatory body concerned? Ifso,please
describe.
Onlythenationalbodiesmentionedinitem2aboveregulateorcontrolbasictelecommunications.
Basic services suppliers mayappeal totheTelecommunications Regulatory Commission to
resolve anydisputes orconflicts between operators ortoappeal adecision.
Thelawfulness ofanydecision bytheCommission isopentoexamination bythecourts.
Frequency allotment orassignment
4. What aretheprocedures, requirements andcriteria applied fortheallotment orassignment
ofradio frequencies?S/NGBT/W/3/Add.38
Page14
Theallotment orassignment ofradiofrequencies tosupply public telecommunications services
issubject toacompetitive bidding procedure orsimilar system andtocompliance with the
ITUregulations.
Theassignmentofradiofrequenciestoextendnetworksofauthorizedsystemsandthefrequencies
necessary toestablish private networks doesnotrequire anobjective selection process ofthekind
mentioned intheprevious paragraph.
UtilizationoftheradiospectrumrequirespriorpermissionfromtheMinistryofCommunications
andissubject tofrequency availability, compliance withtherelevant standards andpayment of
appropriate fees(Ministry ofCommunications, Resolution 3258 of1995).
5. Doforeign telecommunications suppliers receive national treatment under theseprocedures
andcriteria?
Onlyauthorized suppliers maysupply basic telecommunications services. National treatment
isgranted toalloperators, regardless ofthelevelofforeign investment.
Numbering andidentification codes
6. What aretheprocedures, requirements andcriteria used toassign numbering and
identification codes?
Numbering andidentification codes aresetoutintheNational Numbering Planissued in
Decree 2606 of1993.
ThePlanisbeing revised atthepresent timetoallow fornewlocalandlong-distance basic
services operators.
7. Doforeign telecommunications suppliers receive national treatment under theseprocedures
andcriteria?
National treatment isgranted toanysupplier established inaccordance withthelaw,regardless
oftheforeign equity participation.
Standards, typeapproval andequipment attachment
8. What types ofmandatory standards areinplace?
Ingeneral, compliance isrequired withtheITUstandards andrecommendations.
Thebasic technical plans devised bytheMinistry arecompulsory.
Thenational standard onNo.7common channel signalling andtheISDN standard areoperative
andwere prepared bytheMinistry ofCommunications withtheparticipation ofallmanufacturers
supplying equipment inColombia andwithbasic services operators.
9. When astandard isunder review oranewstandard isbeing developed byyourstandards
authority isthere anopportunity forpublic review andcomment prior toitsadoption? May
foreigners participate inthisprocess? Maytheprivate sector participate inthedevelopment of
standards? Ifso,how?S/NGBT/W/3/Add.38
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Itiscustomary fortheMinistry ofCommunications toconvene domestic andforeign public
andprivate operators andmanufacturers informally totakepartinstandard studies anddevelopment.
10. What equipment issubject totypeapproval? Isself-certification allowed? Asyour
government concluded neutral recognition agreements fortelecommunications equipment
certification? Aretheyrequired forforeign-produced equipment?
Generally speaking, onlyterminal equipment connected topublic networks issubject totype
approval.
Intheabsence ofnational procedures, itispossible toaccept certification fromforeign official
bodies andevenself-certification bymanufacturers.
There aremutual recognition agreements within theframework oftheFreeTrade Agreement
between Mexico, Venezuela andColombia (Group ofThree) andacommunity standard isbeing adopted
inthisregard intheAndean Group.
11. Howistheability toattach terminal equipment tothenetwork regulated? What restrictions
arethere onterminal equipment thatmaybeattached tothenetwork?
Except forcompliance withthetype-approval standards forterminal equipment, there isno
restriction onsubscribers attaching theirterminal equipment tothenetwork.
12. Maybasic telecommunications suppliers connected tothepublic network usetheir own
switches?
Basic telecommunications operators maysupply services through theirownnetworks which
includetransmissionandswitchingequipmentandinterconnecttheirnetworkswithotherdulyauthorized
basic services operators.
13. Does theGovernment require network-based suppliers topermit theattachment of
customer-supplied terminal equipment?
Terminal equipment canbefreely bought onthemarket orobtained from service operators
(Decree 1900/90, Article 16).
Basic services operators mustallow theirsubscribers toattach terminal equipment thathasbeen
generally orspecifically typeapproved bytheMinistry oranyone authorized bytheMinistry forthat
purpose.
Interconnection
Network interconnection forthesupply oftelephone services iscompulsory forthevarious
suppliers. Suchinterconnection mustbeinkeeping withthetechnical standards andplans defined by
theMinistry ofCommunications. Competence todetermine interconnection standards andestablish
tariffs among telephone service suppliers lieswiththeTelecommunications Regulatory Commission.
Atthepresent time, theCommission isdeveloping theinterconnection standards among local
suppliers andbetween these andlong-distance suppliers. Asregards tariffs, theequal charge -equal
access principle applies andtheaimistoreflect thecostsofaccess toandutilization ofinterconnected
networks plusareasonable profit.S/NGBT/W/3/Add.38
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14. Ingeneral, howisinterconnection regulated inyour regime? What aretheregulations
applied?
Inkeeping withthesocial function ofpublic orprivate ownership, bodies supplying public
services mustfacilitate access andinterconnection byother enterprises thatsupply public services or
aremajor users thereof tothefacilities usedtoorganize andsupply theservices inquestion.
TheTelecommunications Regulatory Commission candemand thepossibility ofinterconnection
andtechnical typeapproval ofnetworks when essential toprotect users andguarantee thequality of
theservice andpromote competition.
Basic services operators maymake interconnection contracts. Ifthereisnoagreement between
theparties, theRegulatory Commission mayimpose anaccess orinterconnection obligation onthe
enterprise thathasuseofthefacility.
TheTelecommunicationsRegulatoryCommissionisthebodytoestablishthegeneralrequirements
forpublic services enterprises inusing existing networks andobtaining access topublic interconnection
networks. Similarly, itmayestablish tariff formulas fornetwork transport andinterconnection.
Private networks cannot beconnected topublic networks ortoother private networks.
15. Doyourregulations require network-based suppliers toprovide interconnection forother
basic telecommunications network orservices suppliers? Ifsoplease describe.
Yes,asdescribed inthereply toquestion No.14.
16. Isinterconnection between leased-circuits andpublic datanetworks permitted?
Leased circuits which areelements ofprivate networks cannot beconnected topublic data
networks.
Leased circuits which areelements ofvalue-added networks canbeinterconnected withthe
public datanetworks.
Value-added networks canbeusedtosupply value-added services, butinnocasemaythey
beusedtosupply basic services.
17. What aretherules andregulations regarding thepricing ofinterconnection? Are
interconnection charges setinrelation toanyprinciples (e.g.cost-oriented)? Isthere arequirement
tosubmit interconnection charges totheregulatory body forapproval? Arethese charges inthe
public domain? Arethesame interconnection charges applied toallsuppliers requesting
interconnection oraretheynegotiated onacase-by-case basis? What requirements orobligations
exist topublish, make publicly available, ortosupply details ofinterconnection agreements to
regulatory authorities ?
Long-distance basic services suppliers paylocalenterprises acharge foraccess anduseofthe
localnetwork,bothincomingandoutgoing,proportionatetotheincomingandoutgoingtrafficinminutes.
Thecharge perminute issetinrelation toinvestment, operating andmaintenance costsincurred
bylocalenterprises toensure network availability.
Among localenterprises, theaccess charge isequal tohalftheconsumption charge forusers.S/NGBT/W/3/Add.38
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Interconnection charges arecost-oriented.
TheTelecommunications Regulatory Commission establishes themethodology fordetermining
access charges.
Thetariff formulas usedinapplying themethodology areestablished bytheCommission in
consultation withoperators andarevalid forfiveyears.
Theaccess charges must bemade known beforehand andarepublicly available.
Thecharges must beequal foralloperators using thenetwork.
Interconnection agreements may notbediscriminatory andmust besubmitted tothe
Telecommunications Regulatory Commission notlaterthan10daysaftertheyhavebeenconcluded.
Competitive safeguards
18. What kinds ofsafeguards doesyour regime have against anti-competitive practices of
monopolies ordominant suppliers insituations where theymaycompete withother firms tosupply
certain basic telecommunications inthedomestic market? Intheinternational market?
Public service enterprises, inallactsandcontracts, must avoid privileges andunjustified
discrimination andrefrain from anypractice thathastheability, purpose oreffect ofcreating unfair
competition orunduly restricting competition.
Inthisregard, itisexpressly prohibited bylaw:
- Toenter intoagreements withother enterprises toshare charges orkinds ofservices
ortoestablish tariffs, create restrictions onsupply orraisetariffs above competitive
tariffs.
- Toenter intoanykindofagreement withcompetitors inanyactorcontract involving
bidding bythepublic oranycompetitors orwhich isintended toaffect orsucceeds
inaffecting thenormal result under fullycompetitive conditions.
Law142of1994 indicates thepractices thatareregarded asabuse ofmarket power andrun
counter tousers'rights.
TheTelecommunications Regulatory Commission must alsopromote competition inthe
telecommunications sector andpropose oradopt therequisite measures toprevent abuse ofmarket
power, andmaypropose different rulesofconduct depending onthefirm'smarket position (Law 142
of1994, Article 74).
19. Doyour regulations distinguish between dominant andnon-dominant suppliers? Ifso,
what arethedetails andhoware"dominant" and"non-dominant" defined? Arethere any
safeguardsconcerningsupplierswhohavemonopolyordominantcontrolofaccesstocertainmarket
ornetwork segments?
Dominant position istaken tomean apublic service supplier 'sposition inregard toitsusers;
andasupplier 'sposition inregard tothemarket foritsservices andforsubstitute services when it
serves 25percentormore oftheusers thatmake upthemarket (Law 142/94, Article 14(13)).S/NGBT/W/3/Add.38
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Allservicesuppliers,includingStateenterprisessupplyinglocalandlongdistancepublicservices
areobliged topermit interconnection andaccess totheir networks totheextent necessary for
interfunctioning oftheservices andinthemanner established intherelevant regulations.
20. Isthereanindustry-wideanti-trustpolicyand/oranytelecommunications-specificanti-trust
policy? What aretherules andregulations regarding mergers andacquisitions?
Thereisanindustry-wideanti-trustpolicy.Indevelopingit,theTelecommunicationsRegulatory
Commission established therequirements andconditions topermit theentry ofnewlong-distance
telephone service operators. Other services maybesupplied competitively.
Theforegoing iswithout prejudice totheobjectives ofuniversality, solidarity andincome
redistribution established intheConstitution.
21. Arethere anysafeguards concerning basic telecommunication suppliers alsoengaged in
themanufacturing oftelecommunications equipment? Ifso,please describe thecontent and
working ofthese safeguards.
There arenoregulations concerning basic telecommunications suppliers thatarealso
manufacturers oftelecommunications equipment.
Pricing-related measures
22. What istheroleofthegovernment oranyrelated agency withregard toestablishing prices
(e.g.tariffs, access charges, accounting rates) orpricing policy? E.g.doesthegovernment set
theprices ortheaccounting rates directly orindirectly (e.g.price capsorrateofreturn controls)
ordobasic telecommunications suppliers determine these themselves? What requirements or
obligations doesthegovernment setregarding prices charged bymonopoly/dominant suppliers?
Orother suppliers?
TheTelecommunications Regulatory Commission establishes asystem oftariffs forpublic
services enterprises. Thissystem takes theformofamethodology andtariff schemes which mustbe
applied byeachsupplier inthelightofcosts, expansion plans andareasonable rateofprofit. Byusing
themethodology andthesetariffformulas, thesupplier defines theupper andlower limits forthetariffs,
which must beregistered withtheCommission.
Similar mechanisms apply todetermining network access andutilization charges.
Thetariff regime isthesame forallsuppliers, whether ornotmonopoly theyaresuppliers.
23. Does theGovernment require tariff approval ornotification and, ifso,what arethe
procedures?Whatrequirementsregardingcost-accountingareputinplacetoensuretransparency?
PublicserviceenterprisesarerequiredtoregistertariffswiththeTelecommunicationsRegulatory
Commission.
Regulations existsetting outthemethods andtimes forregistering tariffs.
Enterprises must useanaccounting breakdown andtheSingle Accounting Planestablished
bytheOffice oftheSuperintendent ofHousehold Public Services.S/NGBT/W/3/Add.38
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Inregard tobasic services, enterprises must differentiate between costs inthefollowing
categories:
- Local switched public telephone service;
- extended localswitched public telephone service;
- rural telephone service;
- domestic long-distance telephone service;
- international long-distance telephone service.
24. Towhat extent istheprinciple ofnon-discrimination applied inpricing policy? E.g. is
atariff package suchasavolume discount targeted foraspecific group allowed and,ifso,what
aretheterms andconditions applied? Areaccounting rates applied onanon-discriminatory basis
between countries? Ifaccounting rates applied indifferent agreements arenotthesame, what
arethecriteria usedtoarrive atdifferent accounting rates? Aresome ofthese criteria required
ordefined bytheGovernment?
Accountingratesarefixedininterconnectionagreementswiththeconnectingenterprisesabroad;
theGovernmentdoesnotinterveneintheseprocesses,buttherelevantITUrulesmustapply,inparticular
those contained intheInternational Telecommunications Regulations andtheannexes thereto.
Inthepresent context ofregulating thewayinternational basic services arebeing opened up,
theRegulatory Commission, incoordination withtheMinistry ofCommunications, establishes the
rules andcriteria tobetaken intoaccount insetting accounting rates.
25. Doanybasic telecommunication suppliers getinvolved insetting industry-wide tariffs?
TheRegulatoryCommissionholdshearingswitheachoperatortodeterminecostsandmaximum
andminimum tariffs tobeapplied during theperiod thatisbeing regulated.
26. Onwhat basis areprices (e.g.tariffs, access charges, accounting rates) determined? What
concepts areapplied regarding costs? Isthere ageneral principle applied regarding allocation
ofcosts? Iscost-oriented pricing ofbasic telecommunications usedorrequired bytheGovernment?
Ifnot,dobasic telecommunications suppliers usecost-oriented pricing?
Thelawestablishes thatthetariff regime forhousehold public services consists ofrules
concerning (i)afreeorregulated regime; (ii)asystem ofsubsidies, which willgranted sothatpersons
withlowincomes canpaythecharges forhousehold public services tocover theirbasicneeds; (iii)the
rulesontariffpractices thatrestrict freecompetition andinvolve abuse ofmarket power; (iv)therules
onprocedures, methodologies, formulas, structures, brackets, invoicing, options, values and,ingeneral,
anymatters pertaining totariff charges.
Thetariff regime isoriented bythecriteria ofeconomic efficiency, neutrality, solidarity,
redistribution, financial adequacy, simplicity andtransparency.
Economic efficiency istaken tomean thatthetariff regime willbeclose towhatprices would
beonacompetitive market; thattariffformulas musttakeintoaccount notonlycostsbutalsoexpected
increases inproductivity, which must bedistributed between theenterprise andtheusers, aswould
bethecaseinacompetitive market; andthattariff formulas cannot passontotheuserthecosts ofS/NGBT/W/3/Add.38
Page20
inefficient management orallow enterprises toprofit fromrestrictive practices. Inthecaseofpublic
services subject totariff formulas, thetariffs must always reflect notonlythelevelandstructure of
thecosts ofproviding theservice butalsothedemand fortheservice.
Neutrality istaken tomean thateachconsumer willbeentitled tothesame tariff treatment
asanyother ifthecharacteristics ofthecoststopublic service enterprises arethesame. Theexercise
ofthisrightshallnotprevent enterprises from offering tariff options orprevent theconsumer from
choosing theoption bestsuited tohisneeds.
Solidarity andredistribution aretaken tomean thatthetariff regime willadopt measures to
assign resources to"solidarity andredistribution funds", sothathigher bracket andcommercial and
industrial users helplower bracket users topaythetariffs forservices covering theirbasic needs.
Financial adequacy istaken tomean thatthetariff formulas willguarantee recovery ofcosts
andoperating expenses, including expansion, renewal andmaintenance; willpayshareholders aswould
thecaseofanefficient firmworking inasector ofcomparable risks; andwillpermit theuseof
technologies andadministrative systems guaranteeing thebestquality, continuity andcertainty forthe
users.
Simplicity istaken tomean thattariffformulas willbedevised insuchawayastomake them
easytounderstand, apply andcontrol.
Transparency istaken tomean thatthetariff regime willbeexplicit andentirely public for
alltheparties involved intheservice andforusers.
Thecriteria ofefficiency andfinancial adequacy shallhavepriority indefining thetariffregime.
Intheevent ofaconflict between thesecriteria, itshallbeborne inmindthat,foranefficient enterprise,
economically efficient tariffs willbedefined inthelightoffinancial adequacy.
Public service charges arecost-oriented, butmusttakeaccount oftheobjectives oftheservice:
universality, solidarity andincome redistribution.
Atariffshallbeintegral, inthesense thatitwillentail aservice quality anddegree ofcoverage
which shall bedefined bytheTelecommunications Regulatory Commission. Achange insuch
characteristics shallentail achange inthetariff.
Insetting tariffs, public service enterprises shallbesubject toregulation, which mayconsist
foraregime ofregulated freedom, monitored freedom oraregime offreedom inkeeping withthe
following rules:
Enterprises mustkeeptotheformulas issued fromtimetotimebytheCommission insetting
theirtariffs. Further tocostsurveys, theTelecommunications Regulatory Commission mayestablish
maximum andminimum tariff limits, which arecompulsory foroperators; itmayalsoprepare
tariff-setting methodologies iftheregime ofregulated freedom ormonitored freedom should beapplied.
Enterprises shallbefreetosettariffs when theydonothaveadominant market position, further
toanexamination bytheCommission onthebasis ofthecriteria anddefinition setoutinthelaw.
Enterprises arefreetosettariffs, inthecaseofcompetition between suppliers. The
Telecommunications Regulatory Commission shallperiodically determine when theseconditions apply,
onthebasis ofthecriteria anddefinition setoutinthelaw.S/NGBT/W/3/Add.38
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Itisprohibited forpublic service enterprises:
- Togivecustomers onacompetitive market orwhose tariffs arenotsubject toregulation,
tariffs lower thanoperating costs, especially when thesameenterprise supplies services
inother markets inwhich ithasadominant market position orinwhich itstariffs are
subject toregulation.
- Tooffer tariffs lower thanitsaverage operating costs, forthepurpose ofremoving
competitors, preventing theentry ofnewoperators orgaining adominant position on
themarket orwithpotential clients.
- Todiscriminateagainstcustomerswiththesametradecharacteristicsasothers,charging
higher tariffs fortheformer thanforthelatter, evenifthediscrimination occurs in
acompetitive market orinoneinwhich tariffs arenotregulated.
Infringement ofthese prohibitions orofanyoftherules issued bytheTelecommunications
Regulatory Commission inexercise ofthefunctions assigned toitbylawmaygiverisetoregulation
oftariffs forthose notsubject tothemandcancellation ofthetariffformulas applicable tothosesupplying
public services (Law 142/94, Arts. 86,87,88and98).
27. Arethere anyrules specific tothepricing ofanewservices?
Except inthecaseofbasic telecommunications services, services come under themonitored
regime. Thismeans thatanauthorized supplier freely establishes itstariffs andregisters them with
theTelecommunications Regulatory Commission afterafinancial study oftheamounts tobecharged
fortheservice.
Insome instances, theCommission mayintervene andregulate thetariffs ifitconsiders that
theyconstitute anabuse fortheusers.
Rights ofwayfortheconstruction ofaninfrastructure
28. Arebasic telecommunications services suppliers permitted tobuild theirowninfrastructure
orfacilities? Ifso,whataretheprocedures andcriteria fortheauthorization tobuild infrastructure
orfacilities? What aretheprocedures, criteria, limitations orqualifications applied withrespect
tothegranting ofortheavailability ofrights ofwayfortheconstruction ofinfrastructure or
facilities?
Basic services suppliers must build theirownminimum infrastructure.
Infrastructure mustbedeveloped bybasic services suppliers inaccordance withfundamental
technical plans andITUstandards andrecommendations. Inaddition, theconstruction andoperation
oftransport anddistribution networks forswitched basic public telephony, mobile telephony inthe
rural area, andindication ofthetariffs shall begoverned exclusively bylawandbytherelevant
environmental, health andmunicipal standards (Law 142/94, Art.28).
29. Isnational treatment extended toforeign basic telecommunications suppliers under these
procedures andcriteria?
Basic telecommunications aresupplied solely bydulyauthorized suppliers.S/NGBT/W/3/Add.38
Page22
Newtelecommunications services
30. Please describe anygeneral regulatory processes orprocedures thatapply todealing with
theintroduction of"new" telecommunications services. Prior toanyrelevant regulatory procedure
having been completed, isitnotpossible forsuchnewservices tobeapplied?
Allservices require anauthorization orconcession granted bytheMinistry ofCommunications.
Permission tousetheradio spectrum isgranted bymeans ofanobjective selection process.
Innocaseisitpossible tosupply aservice before theconcession orauthorization process has
beencompleted.
31. When anewservice becomes possible oravailable, whodetermines thestatus ofthenew
service (whether itisbasic orvalue-added) andunder what procedure andtime-frame?
Regulations mustbeissued forallservices; theregulations establish thetechnical, operational,
economic andlegalrequirements tobefulfilled bytheoperator toobtain authorization and,insome
cases, establish therights andduties ofthesupplier andtheuser.
TheMinistry ofCommunications issues regulations onnewservices, determining thenature
ofsuchservices inthelightofthelegalprovisions applicable.