GLOBAL COMPETITION REVIEW Telecoms and Media

Telecoms and MediaAn overview of regulation in44 jurisdictions worldwide 2013Contributing editors: Laurent Garzaniti and Natasha Good

Published by Getting the Deal Through

in association with:

Barretto Ferreira, Kujawski e Brancher Sociedade de Advogados (BKBG)Bentsi-Enchill, Letsa & Ankomah

BLP AbogadosCarey

Coelho Ribeiro e AssociadosCoulson Harney Advocates

Debarliev, Dameski & Kelesoska Attorneys at LawDjingov, Gouginski, Kyutchukov & Velichkov

Drew & Napier LLCEdward Nathan Sonnenbergs

Freshfields Bruckhaus Deringer LLPGreenberg Traurig SCJJ Roca & Asociados

Lenz & StaehelinMatheson

MJM Barristers & AttorneysNational Regulatory Agency for Electronic

Communications and Information Technology – MoldovaNikolinakos-Lardas Law Firm

Oentoeng Suria & PartnersSchool of Law, University of the

Thai Chamber of CommerceSeth Dua & Associates

Stikeman Elliott LLPStreamsowers & Köhn

SyCip Salazar Hernandez & GatmaitanTelecommunications Regulatory Authority – Bahrain

The Legal CircleWebb Henderson

Wierzbowski EvershedsWiltshire & Grannis LLP

Wong Jin Nee & TeoYangMing Partners

ZBV Abogados

® GCRGLOBAL COMPETITION REVIEW

Contents

www.gettingthedealthrough.com

®

Telecoms and Media 2013Contributing editors Laurent Garzaniti and Natasha Good Freshfields Bruckhaus Deringer LLP

Business development managers Alan Lee George Ingledew Robyn Horsefield Dan White

Marketing assistants Zosia Demkowicz Megan Friedman Cady Atkinson Robin Synnott

Admin assistants Parween Bains Sophie Hickey

Marketing manager (subscriptions)Rachel Nurse [email protected]

Head of editorial production Adam Myers

Production coordinator Lydia Gerges

Senior production editor Jonathan Cowie

Chief subeditor Jonathan Allen

Production editor John Harris

Senior subeditor Caroline Rawson

Subeditor Tim Beaver

Editor-in-chief Callum Campbell

Publisher Richard Davey

Telecoms and Media 2013 Published by Law Business Research Ltd 87 Lancaster Road London, W11 1QQ, UK Tel: +44 20 7908 1188 Fax: +44 20 7229 6910© Law Business Research Ltd 2013No photocopying: copyright licences do not apply.First published 2000 Fourteenth edition 2013ISSN 1471-0447

The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer–client relationship. The publishers and authors accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of March 2013, be advised that this is a developing area.

Printed and distributed by Encompass Print Solutions Tel: 0844 2480 112

LawBusinessResearch

Overview Laurent Garzaniti, Natasha Good and Hein Hobbelen Freshfields Bruckhaus Deringer LLP 3

Acknowledgements for Verifying Content 6

Argentina Pablo Crescimbeni and María Laura Barbosa ZBV Abogados 7

Australia Angus Henderson, Capucine Hague and Tim Quadrio Webb Henderson 16

Austria Bertram Burtscher and Stefan Köck Freshfields Bruckhaus Deringer LLP 30

Bahrain Alexandre Sérot Telecommunications Regulatory Authority – Bahrain 41

Bangladesh Daniah Khandker, Anita Ghazi Rahman, Mohibul Hassan Chowdhury and Sabrina Afroze 49 The Legal Circle

Belgium Laurent Garzaniti, Thomas Janssens, Hein Hobbelen and Anneleen Straetemans 57 Freshfields Bruckhaus Deringer LLP

Bermuda Timothy Frith MJM Barristers & Attorneys 70

Brazil Ricardo Barretto Ferreira and Fabio Ferreira Kujawski 81 Barretto Ferreira, Kujawski e Brancher Sociedade de Advogados (BKBG)

Bulgaria Violetta Kunze and Lilia Kisseva Djingov, Gouginski, Kyutchukov & Velichkov 90

Canada David Elder Stikeman Elliott LLP 101

Chile Alfonso Silva and Eduardo Martin Carey 112

China Mark Parsons, Yang Xun, Victoria White and Longbo Wang Freshfields Bruckhaus Deringer LLP 125

Costa Rica Eduardo Calderón, Luis Ortiz, Esteban Alfaro and Andrea Sittenfeld BLP Abogados 143

Dominican Republic Sharin Pablo de Roca and Yumari Torres JJ Roca & Asociados 148

European Union Laurent Garzaniti, Thomas Janssens, Hein Hobbelen and Alexia Burckett St Laurent 155 Freshfields Bruckhaus Deringer LLP

France Jérôme Philippe and Aude-Charlotte Guyon Freshfields Bruckhaus Deringer LLP 181

Germany Norbert Nolte and Sibylle Gering Freshfields Bruckhaus Deringer LLP 196

Ghana Josiah Kojo Ankomah-Sey and Susan-Barbara Adjorkor Kumapley Bentsi-Enchill, Letsa & Ankomah 207

Greece Dina Th Kouvelou and Nikos Th Nikolinakos Nikolinakos-Lardas Law Firm 215

Hong Kong Mark Parsons, Victoria White and James Chan Freshfields Bruckhaus Deringer 221

India Atul Dua, Rahul Goel and Anu Monga Seth Dua & Associates 239

Indonesia Noor Meurling, Toby Grainger, Dewi Sawitri and Alwin Redfordi Oentoeng Suria & Partners 249

Ireland Helen Kelly and Claire Morgan Matheson 257

Italy Tommaso Salonico and Luca Ulissi Freshfields Bruckhaus Deringer LLP 280

Kenya Richard Harney and Kenneth Njuguna Coulson Harney Advocates 293

Macedonia Dragan Dameski and Elena Miceva Debarliev, Dameski & Kelesoska Attorneys at Law 301

Malaysia Jin Nee Wong and Min Lee Boo Wong Jin Nee & Teo 308

Mexico Bertha Alicia Ordaz Avilés and Octavio Lecona Morales Greenberg Traurig SC 319

Moldova Sergiu Sîtnic National Regulatory Agency for Electronic Communications and Information Technology 328

Netherlands Onno Brouwer, Winfred Knibbeler and Nima Lorjé Freshfields Bruckhaus Deringer LLP 337

New Zealand Malcolm Webb, Edward Willis and Anisa Purbasari Webb Henderson 346

Nigeria Tamuno Atekebo, Otome Okolo and Chukwuyere E Izuogu Streamsowers & Köhn 354

Philippines Rose Marie M King-Dominguez and Ruben P Acebedo II SyCip Salazar Hernandez & Gatmaitan 362

Poland Arwid Mednis and Artur Salbert Wierzbowski Eversheds 370

Portugal Jaime Medeiros and Mónica Oliveira Costa Coelho Ribeiro e Associados 381

Russia Igor Gerber and Andrey Filippenko Freshfields Bruckhaus Deringer LLP 392

Singapore Chong Kin Lim and Charmian Aw Drew & Napier LLC 408

South Africa Zaid Gardner Edward Nathan Sonnenbergs 430

Spain Sergio Miralles Miravet, Alejandro Milá Valle and Carolina Luna Gordo 439 Freshfields Bruckhaus Deringer LLP

Switzerland Marcel Meinhardt, Astrid Waser and Michael Cabalzar Lenz & Staehelin 453

Taiwan Robert C Lee YangMing Partners 462

Thailand Sudharma Yoonaidharma School of Law, University of the Thai Chamber of Commerce 470

United Kingdom Rod Carlton, Mark Sansom and Olivia Hagger Freshfields Bruckhaus Deringer LLP 479

United States John Nakahata, Kent Bressie and Paul Margie Wiltshire & Grannis LLP 497

Quick Reference Tables 507

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112 Getting the Deal Through – Telecoms and Media 2013

ChileAlfonso Silva and Eduardo Martin

Carey

Communications policy

1 Policy

Summarise the regulatory framework for the telecoms and media

sector. What is the policymaking procedure?

In connection with the regulatory framework for the telecoms and media sector in Chile, there are two general laws to take into account, the General Telecommunications Law (the GTL) and the National Television Council Law (the NTCL).

The GTL mainly rules on the following matters:• itsgeneralrulescontainaconceptoftelecommunications,theprincipleoffreeandequalaccesstotelecoms,aclassificationoftelecommunications services, a general regulatory framework for theinstallation,operationandexploitationofsuchservicesandrulesfortheinterpretation,applicationandcontroloftheGTLanditscomplementaryrules;

• telecomsconcessions,permitsandlicencesneededtoprovidetelecomsservicesandtherequirementsandproceduresapplicabletotheirgranting;

• tariffingproceduresforcertaintelecomsservices;• thefeesfortheuseofspectrum;and• breachesandsanctions.

The NTCL mainly rules on the following matters:• duties,attributionsandorganisationoftheNationalTelevisionCouncil(theNTC);

• concessionsforopentelevisionbroadcastingservicesandtheirgrantingprocedure;and

• sanctionsforbreachestothelaw.

Fordetailsonthis,pleaseseequestion3.TheMinistryofTransportandTelecommunications(theMTT)

through theundersecretaryof telecommunications, Subtel, is inchargeofproposinganddevelopingtelecomspoliciesinChile,whichmustthenbeapprovedbythepresidentoftherepublic.Subtel’spolicydevelopmentprocedureisthestandardprocedurecontemplatedintheChileanlawfortheissuanceofanyregulation.Telecomspolicies,therefore,arematerialisedbytheauthoritythroughthe issuanceofsupremedecreesorexemptresolutions.Althoughthetelecomsauthoritiesarenotobligedtodoso,theyoftenissuenoticesofinquiryornoticesofproposedrulemakingandconsidertheopinionofthemarketplayersbeforeadoptingnewpolicies.

2 Convergence

Has the telecoms-specific regulation been amended to take account

of the convergence of telecoms, media and IT? Are there different

legal definitions of ‘telecoms’ and ‘media’?

No.TherehasbeennoamendmentoftheGTLspecificallyaddressingthis issue. Subtel has disclosed in themedia, however, that the

Chilean government is analysing the issue and that convergence is a keyelementofthegovernment’stelecommunicationspolicy.

There are different legal definitions of telecoms and media. AccordingtotheGTL,‘telecoms’areanytransmission,emissionorreceptionofsigns,signals,writs,images,soundsandinformationofanynature,whetherbyphysicallines,radioelectricity,opticalmeansor other electromagnetic systems.Inturn,pursuanttotheLawonFreedomofSpeech,Information

andJournalism,‘media’comprisesanymeanssuitableforthetrans-mission,disclosure,spreadingorpublicationinastableorperiodi-calmanner,oftexts,soundsorimagesaimedatthepublic,withoutregardoftheplatformorinstrumentusedindoingso.Therefore,somemediaplayersmayalsobetelecommunicationsconcessionairesorpermissionaires(openandcabletelevisionchannels,radiobroad-castingoperators,etc).

3 Broadcasting sector

Is broadcasting regulated separately from telecoms? If so, how?

Asageneralrule,thebroadcastingsectorisregulatedseparatelyfromthetelecomssector.Insomeaspects,however,thesemarketsaresubjecttoaregulatoryoverlap.Fromatechnicalstandpoint,telecoms,radiobroadcastingand

cabletelevision(CATV)operatorsaresubjecttotheGTL.Forthisreason,theMTT,throughSubtel,istheentityinchargeofgranting,renewingandmodifyingtelecomsconcessionsandCATVpermitsandsupervisingthattelecomsandCATVoperatorscomplywiththeprovisionsoftheGTL.Subtel’ssupervisoryauthoritiesextendonlytotechnicalaspectsoftheconcessionandpermitholders’operationsanddonotincludetheabilitytocontrolorcensorthecontentoftheirtransmissions.Subtelalsomanages,pursuanttotheGTL,theassignmentofthe

radio-electricspectrumforboththebroadcasting(radioandtelevi-sion)andtelecomsoperators.

In turn, the NTC is in charge of granting, renewing and modifyingopentelevisionbroadcastingservices(OTBS)concessions(notcable)andsupervisingthatOTBSconcessionairescomplywiththeprovisionsoftheNTCL.TheNTCisalsoinchargeofsupervisingthatthecontenttransmittedbybothOTBSandCATVoperatorscomplieswiththe‘properperformance’requirementssetforthintheNTCL.TheNTCLdefinesproperperformanceasthepermanentrespectofthemoralandculturalvaluesofthenation,thedignityofpersons,theprotectionofthefamily,pluralism,democracy,peace,theprotectionof the environment and spiritual and intellectualeducation of children and youth.ThesupervisoryauthoritiesoftheNTCinconnectionwiththe

contenttransmittedbyOTBSandCATVoperatorsareexercisedex-post.Inotherwords,theNTCmayapplysanctionsonlyif itverifiesthataviolationtotheNTCLhasbeencommitted,butithasnopreviouscensorshipauthorities.

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www.gettingthedealthrough.com 113

Even though there is no entity specifically in charge ofsupervising the content of radio broadcasting telecoms services(RBTS)transmissions,thereareseverallegalprovisionsthatdirectlyor indirectly regulate the content of all kinds of broadcastingtransmissions (including OTBS, CATV and RBTS). These legalprovisionsincludetheCriminalCode(especiallyincasesofslander,libelordefamation),theLawonFreedomofSpeech,InformationandJournalism,theConsumers’ProtectionLawandtheElectionsLaw.

Telecoms regulation − general

4 WTO Basic Telecommunications Agreement

Has your jurisdiction committed to the WTO Basic Telecommunications

Agreement and, if so, with what exceptions?

ChilecommittedtotheWTOBasicTelecommunicationsAgreementwithnoexceptions,apartfromspecifyingwhatisunderstoodinChilebytheterm‘basictelecoms’.

5 Public/private ownership

What proportion of any telecoms operator is owned by the state or

private enterprise?

Atpresent,thereisnorelevantpublicownershipinanyofthemaintelecomsoperators;onenationalOTBSconcessionaire,TelevisiónNacionaldeChile,iswhollyownedbythestate.

6 Foreign ownership

Do foreign ownership restrictions apply to authorisation to provide

telecoms services?

TelecomsconcessionsmaybegrantedonlytoprivateorpubliclegalentitiesdulyincorporatedanddomiciledinChile.Thereisnorestric-tionorlimitation,however,ontheparticipationorownershipofforeigninvestorsinChileantelecomsconcessionaires,providedtheirinvestmentscomplywithChileanlawsandregulations.Withoutprejudicetotheforegoing,incaseofRBTSconcessions

requestedoracquiredbyentitiescontrolledinmorethan10percentbyforeigninvestors,suchRBTSconcessionsmaybegrantedtooracquiredbytherespectiveentityonlyifitpreviouslyprovidesevidence that the country of origin of the foreign investors grants toChileancitizens the same rights that theywill enjoy inChile(reciprocity).Likewise,accordingtoChileanlaw,thechairperson,managers,

administrators,legalrepresentativesandatleastthemajorityoftheboardmembersoffreeradiobroadcastingconcessionairesmustbeChileancitizens.Thechairperson,managers,administrators,legalrepresentativesandalltheboardmembersofOTBSconcessionairesmustalsobeChileancitizens.

7 Fixed, mobile and satellite services

Comparatively, how are fixed, mobile and satellite services regulated?

Under what conditions may public telephone services be provided?

Fixed,mobile and satellite services are generally considered byChilean telecoms regulations as public, intermediate or limitedtelecomsservices(PTS,ITSorLTS),asthecasemaybe.Therefore,exceptforthetechnicalrulesestablishedspecificallyforeachofthemand for the circumstance that, in certain conditions, the tariffs of fixedlocaltelephoneservicesmaybesetbytheauthorities,allsuchservicesaresubjecttothegeneralrulescontainedintheGTLanditsancillaryandcomplementaryregulations.Onlyholdersofatelephonyconcessionmayprovidepublicly

availabletelephoneservices.Inaddition,ifthetelephoneislocatedinapublicarea,thecorrespondingoperatorwillhavetopreviouslyobtainanauthorisationfromtheentityinchargeoftherespectivearea(eg,thecityhall,theMinistryofPublicWorks,theMinistryof

NationalProperties).ITSconcessionairesmayprovidelongdistanceservicethroughpublicphoneslocatedincallingcentresavailableforthegeneralpublic.

8 Satellite facilities and submarine cables

In addition to the requirements under question 7, do other rules apply

to the establishment and operation of satellite earth station facilities

and the landing of submarine cables?

ExceptforcertainsatellitesystemsthatoperateinChileunderinter-nationalagreementssubscribedtobytheChileanstate,satelliteearthstationfacilitiesandsubmarinecableoperatorsaresubjecttothesamegeneralrulesapplicabletoanyChileantelecomsconcessionaire.

9 Universal service obligations and financing

Are there any universal service obligations? How is provision of these

services financed?

There are no universal service obligations in Chile. However,universalserviceisobviouslyagoalofourtelecomspublicpolicies.Forexample:• oneofthemaincriteriaofassignmentinconcessionspublicbidsisthecoverageofferedbythebidders;

• theDigitalAgendafor2013–2020isinspiredintheachievementofuniversalservice;and

• theTelecomsDevelopmentFundcontemplatedintheGTLisfocused in universal service.

Pleaseseequestion33inconnectionwiththelasttwobulletpoints.Finally, regarding new technologies such as voice over internet protocol(VoIP),theVoIPRegulationexistinginChileestablishesthattheVoIPconcessionairesmaynotdiscriminatebasedonthelocationofthecustomerwhendecidingtoacceptornotacceptanypersonorentityasaclient;however,thesameregulationexpresslystatesthattheaccessandconnectiontotheinternetofeachVoIPservicecustomerisnotconsideredaspartofsuchserviceand,therefore,eachcustomerisresponsiblefortheirownconnectiontotheinternet.

10 Operator exclusivity and limits on licence numbers

Are there any services granted exclusively to one operator or for which

there are only a limited number of licences? If so, how long do such

entitlements last?

In thepast, some telecomsoperatorshadexclusivity toprovideparticular services (eg, fixed telephony and long-distance statemonopolies).However,underthecurrentGTL,telecomsconcessionsandpermitsarenotlimitedastotheirnumber,typeofserviceorgeographicalareaand,therefore,itispossibletogranttwoormoreconcessionsorpermitsfortheprovisionofthesameserviceinthesame location.Alimitednumberof licencesaregrantedonlywhere techni-

cal limitationsexist(ie,mobiletelephoneservices,LMDS,WLL,WiMAXandotherwirelessservices),inwhichcaseonlythenumberofconcessionspermittedbythetechnicalregulationoftherespectiveservicemaybegrantedforasingleservicearea.Inthelattercase,concessionswillbegrantedthroughapublicbiddingprocess.Fordetailsonthedurationoflicences,seequestion14.

11 Structural or functional separation

Is there a legal basis for requiring structural or functional separation

between an operator’s network and service activities? Has structural

or functional separation been introduced or is it being contemplated?

Since10December2010LawNo.20,478hasbeeninforce,which,amongotherthings,allowstheoperationofinfrastructuresuppliercompaniesbymodifyingtheconceptofITSintheGTL,includingwithinthisconceptthoseconcessionarieswhoonlyprovidephysical

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infrastructurefortelecomsservices.Thisnewlawalsosimplifiestherequiredprocedureformodifyingtherelevantconcessionsregardingthis type of service. The requirements for obtaining, installing,operatingandexploitingsuchtypesofconcessionareestablishedinaspecialregulationissuedbytheMTTbymeansofSupremeDecreeNo.99,inforcefrom6July2012.

12 Number portability

Is number portability across networks possible? If so, is it obligatory?

On10December2010,LawNo.20,471waspublished,whichestab-lishesthenumberportabilityrightfortheusersofmobiletelephoneservicesaswellasfortheusersoffixedtelephonelines.ThislawamendedtheGTL,includinganewarticle25bis,which

obligatestheconcessionariesofthepublictelephoneservicesandtheprovidersofcomplementaryservicesconnectedtothepublicswitchedtelephonenetworktoimplementthenumberportabilitysystemandtocomplywiththeregulationstobeissuedforthecorrectoperationofthesystem.Thislawfurtherestablishesthatthetechnicalimplementationofthenumberportabilityshallbeperformedbyacentralisedanduniquedatabase,administratedbyaportabilitymanagementbody(PMB),anentityinchargeofprovidingtheinquirymechanismsfortheconsultationandadministrationofthedatabaseinanon-discriminatoryandefficientwayandinsuchamannerthattheoperationalcostsofthenumberportabilitysystemarekepttoaminimum.Thefinancingofthenumberportabilitysystemhasbeendefined

byaspecialregulationbasedonamixedandproportionalsystemthat considers the following sources: • thenecessaryinvestmentcoststoprovideservicesrelatedwiththenumberportabilityoperationwillbefinancedbythecon-tributionsthatthepublictelephoneserviceconcessionariesandthoseconcessionairesofthesametypeshallmakeaccordingtotheirparticipationinthenumberingassignedatnationallevel;and

• theoperatingcostswillbe financedbasedontheportabilitytransactionsperformedbythesubscribersandusers.

Thelawsetsforththatthoseactionswhichpreventormakedifficulttheoperationorthelegitimateexerciseoftherightsthatarisefromthenumberportabilityincurredbytheconcessionairesofthepublictelephoneservice,bythoseconcessionariesofthesametypeorbytheportabilitymanagementbodyshallbepunishedaccordingtotitleVIIoftheGTL.Thenumberportability lawhasbeencomplementedby two

regulationspublishedon25March2011:oneofthemsetsforththepublicbiddingprocedurefortheappointmentofthePMBandreferstoitsorganisationandoperationandtotheeconomicconditionsrelatedtothetransactionsassociatedtotheportability;andtheothersetsforththeobligationsforadequateperformanceofthetelephonicnumberportabilitysystem.Also,during2011thepublicbidfortheawardingofthePMB

positionwasheld(itwasawardedtoTelcordiaTechnologies)andtheimplementationofnumberportabilityforfixedtelephony,VoIP,ruraltelephony,complementaryservices,etc,startedinDecember2011andwasduetobefullyimplementedbyFebruary2013.Port-abilityformobiletelephoneserviceswasfullyimplementedon16January2012.

13 Authorisation timescale

Are licences or other authorisations required? How long does the

licensing authority take to grant such licences or authorisations?

Asageneralrule,toprovideanytelecommunicationsservices,itisnecessarytoobtainaconcession,permitorlicencefromthetelecom-munications authority.Eventhoughproceduresforthegrantingoftelecomsconcessions,

permitsandlicencesareclearlydefinedintheGTLanditsregulations,

thedurationofsuchproceduresdependsonaseriesofvariablesthatmaydifferfromonespecificcasetoanother(particularlywhenthereisoppositionfromthirdparties,whichsometimesmayneedtoberesolvedbythecourtsofjustice).Instandardcases,however,thegrantingofPTS,ITSorRBTSconcessionsmaytakebetweenthreeandeightmonths(RBTSconcessionsarealwaysgrantedthroughpublicbid).Thegrantingoflimitedtelecomsservice(LTS)permits(ie,CATV)maytakefromtwotosixmonths.Finally,thegrantingofOTBSconcessionsmaytakefromseventoeightmonths(OTBSconcessionsarealsoalwaysgrantedthroughapublicbid).Asalreadymentioned,third-partyoppositionsmaysubstantiallyincreasetheabove-mentioned terms. Such oppositionsmay be filed by anyinterestedpartiesthatfeelthatthegrantingoftheconcessionmightdamage any of their rights.

14 Licence duration

What is the normal duration of licences?

Telecomsconcessionsandpermitshavea legally fixedduration.UndertheGTL,PTSandITSconcessionsaregrantedfora30-yearperiod,renewableforidenticalperiodsifrequestedbytheconces-sionaire.RBTSconcessionsaregrantedfora25-yearperiod,afterwhichtheconcessionairewillhavepriorityforrenewal.ConcessionsfortheprovisionofOTBSarealsograntedfora25-yearperiod.PermitsfortheprovisionofLTSaregrantedfora10-yearperiodandmayberenewedupontherequestoftheinterestedparty,withtheexceptionofpermitsfortheprovisionoflimitedtelevisionservicesthatdonotusetheradio-electricspectrum(ie,CATV),inwhichcasethe duration is indefinite.

15 Fees

What fees are payable for each type of authorisation?

Asageneralrule,telecomsconcessionsandpermitsaregrantedonafreebasis.Asmentionedabove,telecomsconcessionsandpermitsmaybesubjecttoauctionbythetelecomsauthoritiesonlyincaseswhentherelevantconcessionsmustbegrantedthroughapublicbid-dingprocessduetothefactthatthereisatechnicalrulethatallowsonlyalimitednumberofconcessionsorpermits,andtwoormorebidderspresentequallysuitableoffers.TheGTLprovides,however,thatconcessionaires,permitholders

andholdersoftelecomslicencesthatusetheradio-electricspectrumaresubjecttoanofficialfeeordutyfortheuseofthespectrum.ThisfeeischargedonanannualbasisaccordingtotheCollectionRegu-lations,dependingonseveralfactors,suchastypeofconcession,permitorlicence,portionofspectrumgrantedandserviceareathathasbeenauthorised.Officialfeesordutiesarechargedfrom1Januaryofeachyear,

andmustbepaid in the secondhalfof the corresponding year.AccordingtotheGTL,apaymentdelayofmorethansixmonthsispunishablebySubtelwiththecancellationofthecorrespondingconcession,permitorlicence.

16 Modification and assignment of licence

How may licences be modified? Are licences assignable or able to be

pledged as security for financing purposes?

Asageneralrule,telecomsconcessionsandpermitsmaybeamendedinalmostallaspects.However,thefollowingelementsoftheessenceoftheconcessionsmaynotbeamended:• PTSandITSconcessions–thetypeofserviceandtheduration

of the concession.• RBTSconcessions–thetypeofservice,servicearea,durationoftheconcession,thetermtostartandcompletetherelevantworksrelated to the concession, the term to start the transmissions, and thepowerandfrequencyoftheconcessiontransmission.

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Additionally,allsupremedecreesgrantingconcessionsmustindicatethe above-mentioned essential elements and the following non-essential elements:• PTSandITSconcessions:theholderoftheconcession,servicearea, technicalcharacteristicsof thefacilitiesspecified inthetechnicalplancorrespondingtothetypeofservice,termfortheinitiation and conclusion of relevant works related to the conces-sion, term for the initiation of the services, location of the radio stations(excludingthemobileandportableones)andthepower,frequencyandtechnicalcharacteristicsofthesystems.

• RBTSconcessions:theholderoftheconcession,locationofthestudios,thelocationofthetransmissionplant,locationandtech-nicalcharacteristicsofthesystemandradiolinksbetweenthetransmissionplantandthestudios.

Thenon-essentialelementsindicatedinthelasttwobulletpointsabovemaybeamendedattherequestoftheinterestedpartythroughtheissuanceofanamendmentsupremedecree.ApplicationsfortheamendmentofconcessionsmustbesubmitteddirectlytotheMTT.TheamendmentsofPTSandITSconcessionsreferringtothe

servicearea,power,frequencyandthetechnicalcharacteristicsofthesystems,andamendmentstoRBTSconcessionsreferringtothelocationofthetransmissionplantandthelocationandtechnicalcharacteristicsofthesystem,aresubjecttoaproceduresimilartothatapplicabletothegrantingoftheconcessionssetoutinarticles15and16oftheGTL;thisincludesthepossibilitythatthirdpartiesmayfileobjectionsoroppositionstothecorrespondingconcessionamendmentapplication.Inseriousandurgentcases,however,theMTT,throughagroundedresolution,mayprovisionallyauthorisetheamendmentofaconcession,regardlessofwhatmaybeultimatelyresolvedbytheMTT.

The amendment of non-essential concession elements, other thanthosespecifiedunderthelasttwobulletpointsabove,maybeperformedafternotifyingSubtel.AnOTBS concessionmay be amended in all of its aspects

(providedthattherelevantamendmentisfeasiblefromatechnicaland practical standpoint). To amend anOTBS concession, theconcessionairemustpreviouslyfileawrittenapplicationbeforetheNTC.TheNTCshallforwardacopyoftheapplicationtoSubteliftheamendmentreferstotechnicalaspectsoftheconcession.Subtel(ifrequired)shallreviewtheamendmentapplicationandcommunicateanyobservationthatitmayhavewithin30days.IfSubtelortheNTChaveobservations, theapplicant shallcorrect themwithin15days.Iftherearenoobservations,orsuchobservationswerecorrected,theNTCshallresolvetheamendmentapplication.AnyNTCresolutionrejectingtheamendmentapplicationoraffectingtheinterestsofthirdpartiesissubjecttoaproceduresimilartothatapplicabletothegrantingofOTBSconcessionssetoutinarticle27oftheNTClaw;thisincludesthepossibilitythatthirdpartiesmayfileobjectionsoroppositionstothecorrespondingconcessionamendmentapplication.As mentioned above, telecoms and RBTS concessions and

permitsmaybeassigned,transferredorleasedonlywiththepriorauthorisationof Subtel,which cannot refuse suchauthorisationwithoutreasonablecause.IncaseofRBTSconcessions,however,suchauthorisationcannotbegrantedwithintwoyearsfromthedateof the legal initiation of the services under the concession. The GTL providesthattheassigneeofaconcessionorpermitissubjecttothesameobligationsoftheformerowner.TheassigneeisboundbythetechnicalandeconomicprojectoriginallysubmittedbytheassignortoSubtelandapprovedbyit.Buttheassigneemayrequesttheamendmentof technicalandeconomicprojectsatany time.Additionally,asmentionedabove,inthecasethatRBTSconcessionsrequestedoracquiredbyentitiesthatarecontrolledmorethan10percentbyforeigninvestors,suchRBTSconcessionsmaybegrantedtooracquiredbytherespectiveentityonlyifitprovidesevidencethat the country of origin of the foreign investors grants to Chilean

citizensthesamerightsthattheywillenjoyinChile(reciprocity).Theviolationofthisrequirementleadstothecancellationoftherespectiveconcessionbytheeffectofthelaw.OTBSconcessionsmaybeassigned,transferredorleasedonly

with the prior authorisation of theNTC,which cannot refusesuchauthorisationifthepotentialassigneeorlesseecomplieswiththe requirements established in theNTCL tobecomeanOTBSconcessionaire.The pledge of telecoms, RBTS and OTBS concessions and

permitsisnotexpresslyregulated.ButSubtel(usingitslegalauthorityto interpret theGTLand its regulations)has expresslydeclaredthatnoauthorisationorapprovalisnecessarytoexecuteapledgeagreementovertelecomsorRBTSconcessionsorpermits.However,authorisationfromSubtel(inthesametermsmentionedabove)willberequiredintheeventofforeclosureofthepledge,andithastobeobtainedbeforethetransferofthepledgedtelecomsorRBTSconcessionorpermittothethirdpartyawardedintheauction.Finally,accordingtotheLawonFreedomofSpeech,Information

andJournalism,anymaterialchangeintheownershipofanymediaentity shall be communicated to the FreeCompetitionDefenceCourt(thecompetitioncourt)within30daysfromitsoccurrence.However,incasesofmediasubjecttoconcessionsgrantedbythestate(RBTS,OTBS,CATVoperators,etc),therelevantchangeofownershipmaybeperformedonlywiththepreviousandfavourableopinionofthecompetitioncourt.Suchreportshallbeissuedbythecompetitioncourtwithin30daysfromtherequestoftheinterestedparty.Otherwise,itshallbeunderstoodthatthechangeofownershipintherelevantmediaentitydoesnotdeserveanykindofobjectionfromthecompetitioncourt.

17 Retail tariffs

Are national retail tariffs regulated? If so, which operators’ tariffs are

regulated and how?

Asageneralrule,thetariffsorfeesforthePTSandtheITSmaybefreelyestablishedbytherespectiveserviceproviders.ButintheeventthattheCompetitionCourtresolvesthattheconditionsprevailinginthefixedorlong-distancetelephonemarket(excludingthemobiletelephone serviceand the signalling, transmissionand switchingservicesprovidedasITSorasprivatecircuits)arenotsufficienttoguaranteefreecompetition,thetariffsorfeesofthetelecomsservicesandoperatorsreferredtointheCompetitionCourt’sresolutionshallbesetbythegovernmentthroughasupremedecree.Thetariffsshallbesetbythegovernmentforafive-yearperiod,basedonan‘efficientcompany’model.Thetariff-settingprocedurecurrentlycontemplatestheparticipationofthirdparties,whichmayexpresstheirpointsofviewtoSubtelthroughtheprocedurecontemplatedintherelevantregulations.

18 Customer terms and conditions

Must customer terms and conditions be filed with, or approved by, the

regulator or other body? Are customer terms and conditions subject to

specific rules?

No. Subtel is, however, empowered to request any informationnecessary for the completionof its functions from the telecomsconcessionaires, including customer terms and conditions.

19 Changes to telecoms law

Are any major changes planned to the telecoms laws?

On11March2010,thenewpresidentofChile,SebastiánPiñera,tookofficeforaperiodoffouryears.Inthepoliticalagendaforhispresidentialperiod,thefollowingmatterswereconsideredinthefieldof telecommunications:• thecreationofaTelecommunicationsSuperintendencyfocusedonthesupervisionofcompliancewithtelecomsregulationsand

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the creation of a National Telecommunications Commission in chargeoftheregulatoryrole;

• thecreationofanimpartialconflictsolutionsystem;• improvementofthelicensingsysteminordertomakeabetteruseofspectrum;

• adjustmentofregulationforabetteruseoftelecommunicationsnetworksandtoencouragecompetition;

• stimulationofinterconnectionbetweenconventionalnetworksandIPnetworks;

• implementation of number portability for fixed andmobiletelephony;and

• redefiningtheTelecomsDevelopmentFundinordertobridgethedigitalgap.

Theimplementationofthesemeasureshasrequiredandwillrequiretheimplementationofseveralregulatoryinitiatives.AmongtheseinitiativestheGTLhasbeenamendedandcomplementedbyeightnewlawssince2010:• LawNo.20,433,whichcreatesandregulatesthefreecitizenandcommunityreceptionradiobroadcastingservices;

• Law No. 20,453, which sets forth the network neutralityprinciple(formoreinformation,seequestion32);

• LawNo.20,471,whichestablishesthenumberportabilityrightfortheusersofmobiletelephoneservicesaswellasfortheusersoffixedtelephonelines(formoreinformation,seequestion12);

• LawNo.20,478,whichregulatestherecoveryandcontinuityoftelecommunicationsinfrastructurethatcollapsedduetotheFebruary2010earthquakeinChileinandalsomodifiesthecon-ceptofITS,includinginthesameconceptthoseconcessionarieswhoprovideonlyphysicalinfrastructurefortelecomsservices(infrastructuresuppliercompanies);

• LawNo. 20,476, which gradually eliminates long-distancechargeswithinChile;

• LawNo.20,522,whichmodifiestheTelecomsDevelopmentFund;

• LawNo.20,546,whicheliminatesthepreferentialrightsthatwereusuallygrantedoracquiredfortheawardingofaconces-sionorpermitestablishedinarticle13CoftheGTL;and

• LawNo.20,599,whichregulatestheinstallationoftelecomstowersandantennasfortheprovisionoftelecomsservices.

Telecoms regulation – mobile

20 Radio frequency (RF) requirements

For wireless services, are radio frequency (RF) licences required in

addition to telecoms services authorisations and are they available

on a competitive or non-competitive basis? How are RF licences

allocated? Do RF licences restrict the use of the licensed spectrum?

Wireless service concessions generally include the RFs necessary for theprovisionoftherespectiveservice;MVNOsareanexceptiontothis.Formoreinformation,pleaseseequestion23.Therefore,wirelessservicesconcessionairesdonotneedspecialRFlicencesorpermits(inadditiontotheirtelecomsserviceconcessionsorpermits)toprovidetheirservicestothepublic.Assuch,theGTLestablishesanequalandnon-discriminatoryrightofaccesstotelecomstoalltheinhabitantsof thecountry.Anypersonmayapply for telecomsconcessions,permitsandlicencesaccordingtothetermsandconditionsoftheGTLanditsancillaryandcomplementaryregulations.Telecomsconcessionsandpermitsaregenerallygrantedtothe

interestedpartyona‘firstcome,firstserved’basis.However,ifthereisatechnicalrulethatallowsonlyalimitednumberofconcessionsorpermitsofacertainservice(eg,mobiletelephonyandotherwirelessservices), the relevant concessions and permits shall be grantedthroughapublicbiddingprocess.OTBSandRBTSconcessionsare always granted through public bidding processes. Telecomsconcessionsandpermitsareusuallygrantedonafreebasis,butmay

besubjecttoauctionbythetelecomsauthoritiesonlyincaseswhentherelevantconcessionsmustbegrantedthroughapublicbiddingprocessduetothefactthatthereisatechnicalrulethatallowsonlyalimitednumberofconcessionsorpermits,andtwoormorebiddersareequallysuitable.IncasesofRBTSconcessions,tiesproducedbetweentwoormorebiddersaresolvedthroughpubliclottery.

21 Radio spectrum

Is there a regulatory framework for the assignment of unused radio

spectrum (refarming)? Do RF licences generally specify the permitted

use of the licensed spectrum or can RF licences for some spectrum

leave the permitted use unrestricted?

Therearenospecificregulationsonspectrumrefarming.Subtelisentitled,however,aslegalmanageroftheChileanradio-electricspec-trum,totakemeasuresandissueregulationsaimedatimprovingefficiencyintheuseofthespectrum.Thisoccurred,forexample,inthe1990swhenSubtelestablisheda12.5KHzcanalisationforthetrunkingfrequenciesinsteadofthe25KHzcanalisationinforceuntilthen.Likewise,in2005,theMMDSCATVpermissionairesthatoperatedinthe2.6GHzbandwereforcedbytheauthoritytomigratetoanotherfrequencyband.Thesamesituationoccurredwithcertainfrequenciesthatwillbeusedfor4Ganddigitaltelevisionservices.Withoutprejudicetotheforegoing,anymeasureadoptedby

Subtelinthisregardshallrespecttherightsalreadyacquiredbythetelecomsoperatorsinconnectionwiththeirconcessionsorpermits.TheGTLestablishesanequalandnon-discriminatoryrightto

usespectrum,butalwaysthroughatelecommunicationsconcession,permitorlicence.RFconcessions,permitsandlicencesdescribethespecificserviceforwhichtheyaregrantedand,therefore,thespec-trumisalwayspermittedtobeusedforspecificpurposes.Formoreinformationonthismatter,pleaseseequestion20.

22 Spectrum trading

Is licensed RF spectrum tradable?

RFsassignedtoaparticularoperatormaynotbetradedortransferredseparatelyfromtheconcessionorpermittowhichtherespectiveRFsareembedded.Telecommunicationsconcessions(includingspectrumornot)may

betransferred,assignedorleasedonlywiththepreviousauthorisa-tionofSubtel,whichmaynotbedeniedwithoutreasonablecause.InthecaseofRBTSconcessions,suchauthorisationcannotbegrantedwithin two years from the date of the legal initiation of the services under the concession.

23 Mobile virtual network operator (MVNO) and national roaming traffic

Are any mobile network operators expressly obliged to carry MVNO or

national roaming traffic?

AccordingtotheregulationsissuedbySubtel,mobileresellersorMVNOsrequireaPTSconcessionformobiletelephonyand,dueto the fact that such concessions are grantedwithout spectrum,theyalsoneedaccesstotheinfrastructureandspectrumofanotherconcessionaireinordertodelivermobiletelephonyservices.SuchaccessshallbegrantedbytheincumbentoperatorsinaccordancewiththecommercialagreementsthatmayhavebeenvoluntaryreachedbetweentheconcessionairethathastheconcessionoverthespectrumandthecorrespondingMVNO.Inthecaseofnationalroamingtrafficthesituationissimilar,theaccesstotheinfrastructureandspectrumofanotherconcessionaireinordertodelivermobiletelephonyservicesisnotcompulsoryfortheincumbentoperators,andsuchaccessesaregrantedbymeansofvoluntarilyagreementsreachedbytherelevantparties.Inthissense,twonationalroamingagreementshavebeenreachedbetweentwonewentrants–NextelandVTR–andtwoincumbents–EntelandMovistar–respectively.

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Notwithstandingtheabove, inDecember2011theSupremeCourt overturned aCompetitionCourt rulingwhich originallyrejectedtheclaimfiledbythenationalantitrustattorneyagainstthreedifferenttelephoneservicecompanies(Movistar,EntelandClaro)andfoundthatthesecompaniesperformedactionstopreventtheentryofcompetitorsintothemobilemarket.Theillegalconductperformedbythethreeoperatorsconsistedof

arefusaltosupplyfacilitiesforthedevelopmentofMVNOs.TheSupremeCourtestablishedthatthethreemobilecompanies

‘unreasonablyrefusedtoofferfacilitiesforresale’bycreatingartifi-cialbarrierstoentry.Consequently,theSupremeCourtorderedeachofthecompanies

topayafineofapproximatelyUS$3millionandorderedthemtofileanofferoffacilitiesorresaleofplansforMVNOswithin90days,onthebasisofgeneral,uniform,objectiveandnon-discriminatorycriteria.

24 Mobile call termination

Does the originating calling party or the receiving party pay for the

charges to terminate a call on mobile networks? Is call termination

regulated, and, if so, how?

Since1994,thecallingpartyshallpayforthechargestoterminateacallonmobilenetworks(‘callingpartypays’orCPPsystem).Asmentionedinquestion29,themobileoperator’saccesschargesarefixedeveryfiveyearsbytheauthoritiesinaccordancewithatariff-settingproceduresetoutintheGTL.Fromacash-flowstandpoint,theoriginatingnetworkoperator

shallpaytheaccesschargestothemobilenetworkoperator.Inturn,theoriginatingnetworkoperatorisentitledtorequestthereimburse-mentofsuchchargesfromthesubscriberthatmadethecall.

25 International mobile roaming

Are wholesale and retail charges for international mobile roaming

regulated?

Nospecificregulationhasbeenissuedinthisregard.

26 Next-generation mobile services

Is there any regulation for the roll-out of 3G, 3.5G or 4G mobile

services?

InSeptember2000,Subtelissuedatechnicalrulereservingthe1,710–1,770MHzand2,110–2,170MHzbandsforthird-generationmobileservices(3G)tobegrantedthroughapublicbiddingprocess.On27January2009,theSupremeCourtruledthatnooperator

mayconcentratemorethan60MHzinanybandassignedforpublicmobiletelephonyservicesasaconsequenceofthe3Gpublicbid.Ifanyoperatorreceives3Gspectrumand,forsuchreasonexceedstheabove-mentioned60MHzcap,suchoperatorwillhavetosurrendersuchspectrumeitherbyreturningittothestateorthroughasalebypublicauction.Thegeneraltermsandconditionsforthepublicbidwereissued

bySubtelinApril2009,confirmingthespectrumcapfixedbytheSupremeCourtandregulatingtheassignmentof threespectrumblocksof30MHzeachwithnationalcoverage(90MHzoverall).Consideringthattherewerealreadythreeoperatorswhichcouldnotincreasetheirspectrumduetothecap(Entelhadalready60MHzandMovistarandClaro55MHzeach),thisbecameanopportunityfor new entrants.The public bid took place during 2009 and, after a public

auction,Nextelobtainedtwoconcessionsof30MHzeachandVTR(asubsidiaryofLibertyMedia)obtainedtheremaining30MHz,permittingtheentranceoftwonewcompetitorsintothemarketofnextgenerationmobileservices.In2012anewpublicbidprocesstookplaceforthegrantingof

PTSconcessionsbasedon4Gtechnologyfortheprovisionoffixed

ormobiledatatransmissionpublicservicesinthefrequencybands2,505–2,565MHzand2,625–2,685MHz.On30July2012,afterapublicauction,SubtelannouncedthatClaro,EntelandMovistar(theincumbentsthatparticipatedinthebidprocess)wereeachawardedoneofthethree40MHzspectrumblocksdistributedbythispublicbid(blocksA,BandCrespectively).Thedeadlinetostart4Gservicesis12monthsnationwideand

24monthsforconnectingthe543isolatedareasthatwereincludedinthebiddingconditions.

Telecoms regulation – fixed infrastructure

27 Cable networks

Is ownership of cable networks, in particular by telecoms operators,

restricted?

ThereisnospecificrestrictioninChileregardingtheownershipofCATVoperatorsornetworksbyothertelecomsserviceproviders.Infact,themainCATVoperatorhasforalongtimeofferedatri-plepackconnection(CATV,localtelephonyandinternetaccess)tothepublic.Chileanauthorities,however,mightrestrictownershipif,accordingtoantitrustlaw,itimpairs,restrictsoreliminatesfreecompetitionwithintherelevantmarket.Anysuchinstanceswillbeanalysedonacase-by-casebasis.InMarch, 2011 the national antitrust attorney presented a

requestbeforetheCompetitionCourtinordertoobtainageneralinstructionrelatingtotheconditionsorrequirementswhichshallbeconsideredbytelecomsserviceprovidersinthecommercialisationofthejointoffersorservicepacksofferedtothepublic.On18Decem-ber2012theCompetitionCourtimposedthefollowingmeasures:• thejointsellingoffixedandmobileservicesisnotforbidden,butthecompanycannotgrantdiscountsormorefavourablecondi-tionsofanykindtocustomersorsubscribersforbothtypesofservices;

• thegeneralinstructionwillapplyonlytocustomersqualifiedasnaturalpersons(notcorporations);

• thepriceoftelecomsservicessoldjointlymustbehigherthanatleastthepriceoftheproductorserviceofgreatervaluesoldseparately;

• telecomscompaniesmust,inanycase,sellseparatelyeachprod-uctorservicethatispartofajointoffer;and

• thegeneral instructionwillbe ineffectuntil thestartof4Gservices.

28 Local loop

Is there any specific rule regarding access to the local loop or local

loop unbundling? What type of local loop is covered?

Unbundledaccess to the local loop isnotcurrentlyregulated inaspecificmannerintheGTLoritsancillaryregulations.Subtel,however,hasbeenplanning to issuea regulationaddressing theunbundlingofthelocalloopinaspecificmanner.

29 Interconnection and access

How is interconnection regulated? Can the regulator intervene to

resolve disputes between operators? Are wholesale (interconnect)

prices controlled and, if so, how? Are wholesale access services

regulated, and, if so, how?

Accordingtoarticle25oftheGTL,PTSandITSconcessionairesthatrenderlong-distancetelephonyservicesmustestablishandacceptinterconnectionsforthepurposesofpermittingsubscribersandusersofPTSofthesametypetohavecommunicationsbetweenthemselves,inside or outside the national territory. Such interconnections must beeffectedaccordingtothetechnicalrules,proceduresandtermsestablishedbySubtel.

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Forthesepurposes,article8ofthePublicTelephoneRegulationstatesthatPTSofthesametypeareallthoseservicestechnicallycompatibleamongthemselves.ThegeneralprinciplegoverninginterconnectionintheGTLis

thatthenewconcessionairepaysthecostsandexpensesnecessarytointerconnectitsnetworktothatofthepre-existingconcessionaire.AccordingtotheGTL,violationoftheinterconnectionobligation

maybepunishedbytheMTTwithfinesofuptoapproximatelyUS$650,000.Eachdayinwhichthecorrespondingconcessionairefails to complywith its interconnection obligation after Subtel’srequirementtodosowillbeconsideredaseparateviolationtotheGTL.Additionally,accordingtotheTelecommunicationServiceClaimsRegulation,attherequestofanaffectedparty,Subtelisempoweredtoresolveanyclaiminvolvingtelecomsoperators(includingclaimsrelatedtointerconnectionmatters).Subtel’sdecisions,however,arechallengeablebeforethecourtsofjustice.Asaseparatematter,thefeesandtariffsapplicablebetweenthe

concessionaires for services rendered through the interconnection (particularlyaccesscharges)shallbefixedeveryfiveyearsbytheauthoritiesinaccordancewithatariff-settingprocedure(basedonthecoststructureandexpansionplansoftherespectiveoperator)setoutinarticles30to30-JoftheGTL.FromDecember2010theeven-tualanti-competitiveeffectsofthepricingdifferentiationthatsomeofthePTSperform,knownasthe‘on-net/off-net’charges,whichhavedirectrelationwiththeaccesschargesfixedbythetariffsettingprocedure,hasbeendiscussedintheCompetitionCourt.On18December2012,theCompetitionCourtissuedageneral

instructiontothemarketandimposedadditionalregulations.Withrespecttothemobiletelephonemarket,theCompetitionCourtcon-cludedthatthedifferencebetweentherateschargedbymobilephonecompaniesifcallsterminateonitsownnetwork(on-netcalls)orinothernetworks(off-netcalls)wereseveraltimeshigherthanthefixedinterconnectionchargessetbytheauthority.AccordingtotheCom-petitionCourt,thisdiscriminationhasnoeconomicjustificationandhastheeffectofexcludingandpreventingthedevelopmentofnewcompetitors,inthiswayincreasingtheincumbents’marketpower.Tomitigatetheseeffectsagainstcompetition,fromtheentrance

intoforceofthetariffdecreebywhichtheauthoritywilldeterminethenewaccesscharges,thecompaniesshallnotcommercialiseplanswithdifferentpricingforon-netcallsandoff-netcallsordeliveradifferent amount of minutes. Inthemeantime,after60daysfrompublicationofthegeneral

instructionintheOfficialGazetteandwhilethecurrenttariffdecreeforaccesscharges is still in force,mobilephoneoperatorsmustreducethedifferencebetweenthepricesofon-netandoff-netcall,sothatthedifferenceinpricedoesnotexceedtheapplicableaccesschargesand,inplansthatincludedifferentiatedminutesaccordingtocalldestination,theproportionbetweenminuteson-netandoff-netincludedmustnotexceedtheproportionoftherespectivepriceperminuteoftherespectiveon-netandoff-netcalls.

30 Next-generation access (NGA) networks

How are NGA networks regulated?

TherearenospecificregulationsonNGAnetworks.Inthisregard,the GTL and its ancillary regulations only rule over the telecom-municationservices,butnotoverthenetworksthroughwhichsuchservicesareprovided.Theservicesmayalwaysberenderediftherelevantoperatorfulfilstheapplicabletechnicalregulations.Theabove-mentionedstructureistheresultofthetechnology-

neutralprinciplethatinspiresChileantelecomslegislation,pursuanttowhichservicesareprovidedwithoutregardtothetechnologyusedfortheirprovision.

Telecoms regulation – internet services

31 Internet services

How are internet services, including voice over the internet,

regulated?

Internetaccessservicesareusuallyconsideredasaclassof‘telecomscomplementaryservices’and,hence,arenotspecificallyregulated.AccordingtotheGTL,PTSconcessionairesoranyotherperson

or entity, may provide complementary services through publictelecomsnetworks.Suchcomplementaryservicesconsistofadditionalservicesthatareprovidedthroughtheconnectionoftheequipmentofcomplementaryserviceproviderstothepublictelecomsnetworks.Equipmentshouldcomplywiththetechnicalregulationsissued

bySubtelandshouldnotaltertheessentialtechnicalcharacteris-ticsandcapabilitiesof the telecomsnetworks towhich theyareconnected.Theprovisionorcommercialisationofcomplementaryservices

doesnotrequireanyconcessionorpermitnoranycontractualorverbalagreementorauthorisationfromanyPTSconcessionaireorgovernmentauthority(includingSubtel).Nevertheless,beforethestartofthecomplementaryservices,Subtelmustissueastatementcertifying that the respective complementary service provider’sequipmentcomplieswiththeabove-mentionedtechnicalregulations.Subtelmust issue this statementwithin 60working days of itsreceiptoftheinterestedparty’srequest;otherwisethecorrespondingcomplementaryserviceproviderwouldbeauthorisedtoinitiateitsservicesbythemereeffectofthelaw.PTS concessionairesmust not perform any act that implies

discriminationinfavourofanycomplementarytelecomsservicesprovider,orthatmaycauseanyalterationtofreecompetitioninthe market.InconnectionwithVoIP, inJune2008,Subtel issuedalong-

awaitedregulationregardingsuchservice.Afterasix-monthwait,thisregulationentered inforceon15December2008.ThenewregulationestablishesthataPTSconcessionisrequiredtoprovidetelephoneservicesovertheinternet,whenthecorrespondinguserhasthepossibilitytomakecallstoandreceivecallsfromthePTSN.Consequently,communicationsentirelydoneovertheinternetwouldnotrequireanyconcessionorpermit.Thesamethingoccurswithone-wayinternet-PTSNcommunications(whichdonotallowthereceptionofcommunicationsfromthePTSN).

32 Internet service provision

Are there limits on an internet service provider’s freedom to control

or prioritise the type or source of data that it delivers? Are there any

other specific regulations or guidelines on net neutrality?

On26August2010,lawNo.20,453waspublished.ItsetsforththenetworkneutralityprincipleintheGTLbyvirtueofwhichtheinter-netserviceproviders(theISPs)andthosethatownandadministratethebackbonestructureoftheinternetservice,shallnotmakeanydiscrimination and differentiation among the information that runs throughtheirequipmentand/orthenetworkinfrastructure.Inordertoaccomplishthegoalofprotectingandenforcingthe

neutralityprinciple,LawNo.20,453createsseveralnewprohibi-tionsandobligationsapplicabletothePTSconcessionairesandtheISPs,asdescribedbelow:Theprohibitionsare:

• theyshallnotblock,interfere,discriminate,hinderorrestrict,inanarbitrarymanner,therightofuserstouse,send,receiveorofferanycontent,applicationorserviceprovidedthroughtheinternet, as well as any other kind of activity or authorised use performedthroughtheweb(theyshallonlybepermittedtodotheforegoingbyexpressrequestfromtheuser);

• theyshallnotaffectfreecompetitionduringtheperformanceoftrafficmanagementmeasuresandwebadministration;and

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• theyshallnotlimittheuserrighttoincorporateoruseanyclassofequipment,device,orgadgetintheweb.

Theobligationsare:• theyshallpreserveuser’sprivacyaswellastheyshallprovideprotectionagainstvirusesandsecurityservices;

• provideparentalcontrolservices;and• publishontheirwebsitealltheinformationrelatedtothechar-

acteristics of the internet access service offered.

Thislawwascomplementedbyaspecialregulation,publishedon18March2011,whichestablishesthespecificrequirementswhichtheISPsmustaccomplishinconnectionwiththesenetwork-neutralitylegalobligations.

33 Financing of basic broadband and NGA networks

Is there a government financial scheme to promote basic broadband

or NGA broadband penetration?

TheGTLcontemplates thecreationofaTelecomsDevelopmentFundwiththepurposeofpromotingtheincreaseoftelecomsserv-icescoverageinpoororgeographicallyisolatedareas.Thefundcon-templatessubsidising:projectsforpubliclyavailabletelephonesandcallingcentres;community‘infocentres’(theseprojectsshallhavethepurposeofpromotinginformationandcommunicationtechnologies,includingconnectiontointernet);localradioandtelevisionservices;andanyotherproject for telecomsservices thatmaybenefit thecommunity.In December 2007, the Chilean government launched a

programme called ‘Digital Strategy for 2007–2012’,whichwaspreparedbytheCommitteeofMinistersforDigitalDevelopmentafterextensiveworkcarriedoutwithparticipantsfromthebusinesssector, universities, civil society and the government itself. The objectiveofthisprogrammeistocontributetotheeconomicalandsocialdevelopmentofthecountry,throughtheimplementationofthepotentialofferedbyinformationandcommunicationtechnologies(ICTs),inordertoimprovethequalityofeducation,transparency,increaseproductivityandcompetition,andmakeabettergovernmentwithmoreparticipationandcommitmentfromcitizens.Atthattime,theDigitalStrategyhadthefollowinggoalsfor

2007–2012:• double broadband connections covering thewhole nationalterritory;

• doubleinvestmentinICTs;• developadigitallegalandregulatoryframeworkthatintegratestheprivateandpublicsectors;

• strengthenthegovernment’sroleintheacquisitionofICTstoimprove the services’ offer, promote the ICT’s industry andimprovee-government;

• updatelegislationonintellectualproperty,personaldata,con-sumers’rights,cybercrime,etc;

• developnewICTserviceareasfocusedontherelationsbetweencompaniesandcitizensandthegovernment;

• promotethedevelopmentanduseofICTsinChile’smainindus-tries,suchasmining,forestry,aquacultureandtourism;

• locateChileinpolepositionoftheregionforthedevelopmentofremotetechnologicalservices;

• applyICTsfortheimprovementofpublicandprivatetranspar-encyandtheimplementationofe-government;

• use ICTs for the inclusionofwomen in employmentand toimprovetheirparticipation;and

• increasefundsforICTresearchanddevelopmentinuniversitiesand study centres.

AlsoinDecember2007,theChileangovernment,actingthroughSubtel,andseveralofthemostimportanttelecomsoperatorsofthecountry,signedthePublic-PrivateAgreementforDigitalConnectivity.

Pursuanttothisagreement,allofthepartiesinvolvedundertooktojointheirbesteffortsandtoworkinacoordinatedmannertoachievethefollowinggoalsonorbeforetheendof2010:• 2millionnewconnectionstotheinternet(atanaveragespeedof1Mbps);

• 10percentofthehomesofthepooresttwo-fifthsofthepopula-tiontobeconnectedtotheinternet;

• 100percentofruralschoolstobeconnectedtotheinternet;and

• accesstotheinternetfor95percentoftheruralpopulation(atpricessimilartothoseofferedinurbanareas).

Thepartiesdefinedthefollowingasareasofworktoachievetheabove-mentionedgoals:

Regulation• flexibilityoftheregulatoryframework;• promotionofinvestmentinnetworksandoftechnologicalcom-petition;and

• reductionofregulatorybarriersthathinderinvestment.

Competition and new technologies• commitmenttomoreinvestment,morecompetitionandmore

services.

Telecoms development fund• public-privateworkinthepreparationofthefundbids;and• notices of inquiries before issuing the bids terms and

conditions.

Indicators and follow-up• preparationofanobjectivecompliancemeasurementtool;• strengtheningofthegovernment’ssupportofsocialresponsibilityactionscarriedoutbytelecomsoperators;and

• coordinationofeffortstoincreasetheimpactofsocialresponsi-bilityactionscarriedoutbytelecomsoperators.

Finally,during2012,theChileangovernment,actingthroughthesec-retaryofdigitaldevelopment,preparedanewprogramme,theDigitalAgendafor2013–2020,inordertohaveanactionplanforthenextsevenyearsregardingthisimportantmatterandalsoforthepur-poseofincreasingdigitalpenetrationthroughoutChileanterritory.Theconclusionsofthisinitiativearetheresultofadialoguebetweenpublicandprivateentitiesregardingdigitaldevelopment,onwhichallrelevantplayersinthetelecomssectorparticipated.ItisexpectedthatthecontentoftheDigitalAgendafor2013–2020willbepubliclyknowninearly2013.TheDigitalAgendastrategywillbebasedonfivepillars:entrepreneurshipandinnovation,connectivityanddigitalinclusion,creationofanappropriatedigitalenvironmentforitsdevel-opment,educationofthedigitalcitizenanddigitaltraining.

Media regulation

34 Ownership restrictions

Is the ownership or control of broadcasters restricted? May foreign

investors participate in broadcasting activities in your jurisdiction?

Ingeneral,therearenorestrictionsontheownershipandcontrolofbroadcasters.ForeigninvestorsmayparticipateinbroadcastingactivitiesinChileandevenbetheexclusivecontrollersofChileanbroadcastingcompanies.Withoutprejudicetotheforegoing,incaseofRBTSconcessions

requestedoracquiredbyentitiescontrolledmorethan10percentby foreign investors, suchRBTSconcessionsmaybegranted tooracquiredbytherespectiveentityonlyifitpreviouslyevidencesthat the country of origin of the foreign investors grants to Chilean citizensthesamerightsthattheywillenjoyinChile.

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Asmentionedabove,anymaterialchangeintheownershipofanymediaentityshallbecommunicatedtotheCompetitionCourtwithin30daysfromitsoccurrence.However,inthecaseofmediasubjecttoconcessionsgrantedbythestate(RBTS,OTBS,CATVoperators,etc),therelevantchangeofownershipmaybeperformedonlywiththepreviousandfavourableopinionoftheCompetitionCourt.SuchreportshallbeissuedbytheCompetitionCourtwithin30daysfromtherequestoftheinterestedparty.Otherwise,itshallbeunderstoodthatthechangeofownershipintherelevantmediaentitydoesnotdeserveanykindofobjectionfromthecourt.

35 Cross-ownership

Are there any regulations in relation to the cross-ownership of media

companies, including radio, television and newspapers? Is there any

suggestion of change to regulation of such cross-ownership given the

emergence of ‘new media’ platforms?

No.AnOTBSconcession,however,maynotbegrantedtoanentitythatalreadyisorcontrolsaVHFconcessionaireinthesameservicearea.Likewise,Chileanauthoritiesmightrestrictcross-ownershipofmediacompaniesif,accordingtoantitrustlaw,itimpairs,restrictsoreliminatesfreecompetitionwithintherelevantmarket.Anysuchinstanceswillbeanalysedonacase-by-casebasisbytheCompeti-tionCourt.Currentlythereisnobillrelatedtocross-ownership,noranyplanorsuggestiontochangetheregulationapplicabletothismatter.

36 Licensing requirements

What are the licensing requirements for broadcasting, including the

fees payable and the timescale for the necessary authorisations?

AconcessiongrantedbytheMTTisnecessarytoprovideRBTS.Inturn,aconcessiongrantedbytheNTCisnecessarytoprovideOTBSservices.Bothkindsofconcessionsaregrantedthroughapublicbidprocess.AlmostallRBTSandOTBSconcessionsallowedforwithintherelevantmarketsinthecountryhavebeenalreadygrantedandareinoperation.So,theMTTortheNTCwillonlyannouncepublicbidswhenaspotbecomesavailableasaresultoftheexpiration,cancellationorwaiverofanexistingconcession.ApermitgrantedbySubtelisnecessarytoprovideCATVservices.

For information regarding the licensing timescale of these kinds of concessionsandpermits,seequestion13.Inconnectionwiththefeespayablefortheuseoftheradio-electricspectrum,seequestion15.

37 Foreign programmes and local content requirements

Are there any regulations concerning the broadcasting of foreign-

produced programmes? Do the rules require a minimum amount of

local content? What types of media are outside of this regime?

There are no current regulations. The NTC, however, has the authoritytodetermine,inageneralmanner,thatapercentageofupto40percentofthetransmissionsofOTBSchannelsmustconsistofdomesticproductions.ThisdeterminationisonlyapplicabletotheOTBS,andtherefore,theothertypesofmediaarenotsubjectto this regime.

38 Advertising

How is broadcast media advertising regulated? Is online advertising

subject to the same regulation?

The regulation of radio and television advertising is not organic in Chileanditiscoveredbyseverallegalprovisions:• advertisingtransmittedthroughOTBSorCATVmustcomplywiththe‘properperformance’requirementscontainedintheNTCL;

• theNTChasestablishedthatanykindofadvertisingofprohibiteddrugsisforbidden;

• theTobaccoLawmateriallyrestrictstobaccoadvertising.Thislawprovidesthatnoadvertisingorpromotionoftobaccoprod-uctsshallbemadeinpublicationsaddressedtopeopleunder18yearsold.Ontelevision,suchadvertisingorpromotionshallbedoneonlyinhoursinwhichtheNTChasauthorisedpro-grammesqualifiedforpeopleolderthan18yearsold.Likewise,tobaccoadvertisinginChileancommunicationsmediabymeansofinternationalsignalsorwebsitesendingwith‘.cl’(thesuffixfordomainnamesgrantedinChile)isprohibited;

• theConsumersProtectionLawprohibits falseormisleadingadvertising;

• theUnfairCompetitionLawsanctionsanyconductagainstthegood faith that using illegitimate means is aimed at deviating customers‘fromanymarketagent’.Insuchregard,amongothertypesofconduct,theUnfairCompetitionLawspecificallyclassi-fiesasunfaircompetition:

• anyfalseorincorrectstatementorinformationaboutanyproduct,service,activity, trademarkor logoofanythirdparty,whensuchfalseorincorrectstatementorinformationiscapableofdamagingthemarketreputationofsuchthirdparty;

• anyconductthatmakesuseofanotherparty’sreputationandleadstoconfusionaboutownandthirdparties’productsandservices;and

• anycomparativeadvertisingthatisnotbasedinverifiableandtruedata;

• thePressLawgrantstherightofclarificationandrectification,throughwhichanypersonorentityoffendedorunfairlyalludedto(forexample,throughadvertising)inthemedia(includingOTBSandRBTSconcessionaires)hastherighttotransmitorpublish(asthecasemaybe)aclarificationorrectificationinthesame media in which the offence or unfair allusion was made, payingonlyforthecostofthematerialtobetransmittedorpublished;and

• accordingtotheLawofVotesandScrutiny,electoralpropagandamayonlybetransmittedduringtheperiodrunningfrom30tothreedaysbeforetherelevantelectionorreferendum.

Asaresultoftheabove-mentionedlackofanorganicregulationinconnectionwithadvertising,thecompaniesengagedinthisbusinessandtheRBTSandOTBSproviderscreatedtheNationalCouncilfortheAdvertisingAutoregulation(CONAR).Aspartofitsactivities,CONARissuedanadvertisingethicalcodeandcreatedanarbitrationcourt. CONAR’sethicalcodestatesthat:

• advertisingmustbelegal,decent,honestandtruthful;• advertisingmust be preparedwith a proper sense of socialresponsibility,byspecialisedprofessionalswhouseadequateinformationanddocumentation,accordingtotheprinciplesoffreecompetitionrelatedtothegeneralpracticeswhichareusedinthecommercialactivitysector;

• noadvertisementmustbeexhibitedinawaythatdiminishespublicconfidenceinpublicity;

• everyadvertisementactivitymustinvolverealandtruecompeti-tionamongseveralproductsandservices,that,throughadequateinformation,willallowthepublictomakeafreeandinformedchoice;and

• asanactivityorientedmainlytowardspublicwelfare,adver-tisersandagenciesmustadapttheiractionstotheeconomic,cultural, social and educational reality that the community has atthemomentinwhichtherelevantproductsandservicesareoffered.

Most of the relevant players in the advertising business havevoluntarilysubmittedthemselves to theabove-mentionedethicalcodeandarbitrationcourt.Thisauto-regulatoryapproachoftheadvertisingmarkethasproventobeverysuccessfulinpreventing

Carey Chile


advertisingabusesandconflicts.Infact,onlyonrareoccasionshavetheauthoritiesbeenforcedtotakeactioninrelationtoanadvertisingissue.Onlineadvertisinghasalsonotbeenorganicallyregulated.It

issubject,however,tomostoftherulesmentionedabovefornon-online advertising.

39 Must-carry obligations

Are there regulations specifying a basic package of programmes that

must be carried by operators’ broadcasting distribution networks?

Is there a mechanism for financing the costs of such obligations?

OTBS concessionaires have to transmit at least one culturalprogramme per week. Such cultural programmes must have adurationofatleastonehourandmustbebroadcastbetween6pmand11pm.Likewise,thepresidentoftherepublicorotherhigh-ranking

publicofficialsmayrequestanationalbroadcastingchain.Underanationalbroadcastingchain,allOTBSandRBTSconcessionairesare requestedby thegovernment to transmit, at the same time,certain information or announcements deemed highly relevant to theChileanpeople.Therelevantbroadcastersmustassumethecostofthecultural

programmeandanynationalbroadcastingchain.Likewise,asmentionedabove,anypersonorentityoffendedor

unfairlymentionedinthemediahastherighttotransmitorpublish(asthecasemaybe)aclarificationorrectificationinthesamemediainwhichtheoffenceorunfairmentionwasmade,payingonlyforthecostofthematerialtobetransmittedorpublished.Finally,theLawofVotesandScrutinyregulatesthepropaganda

thatdifferentcandidatesorpositionsmaybroadcastduringelectoralperiods.Accordingtothislaw,duringtheperiodrunningfrom30tothreedaysbeforetherelevantelectionorreferendum,OTBSconces-sionairesshallfreelyassign40minuteseverydaytoelectoralpropa-gandarelatedtotheelectionofthepresidentoftherepublicandtheelectionoftheChileancongressmembersornationalreferendums(distributedin20minutesforthepresident’spropagandaand20minutesforthecongressmembers’propaganda).

40 Changes to the broadcasting laws

Are there any changes planned to the broadcasting laws? In particular,

do the regulations relating to traditional broadcast activities also apply

to broadcasting to mobile devices or are there specific rules for those

services?

Asalreadymentioned,traditionalbroadcastactivitiesandmobiledevicesaresubjectfromatechnicalstandpointtotheGTL.Inthissense,Subtel’sauthorityextendsonly to technicalaspectsof thetraditionalbroadcastpermitsandmobileconcessionsanddonotincludetheabilitytocontrolthecontentoftheirtransmissions.Fromacontentstandpoint,theNTCistheentityinchargeof,amongotherfunctions,supervisingthatthecontenttransmittedbytelevisionbroadcasterscomplieswiththeproperperformance,buttheNTCdoesnothavetheauthoritytoregulatethecontenttransmittedbymobiledevices.Therearenospecificregulationsapplicabletomobiledevices in this regard.Themainchangesexpectedforthebroadcastinglawsarethose

requiredfortheimplementationofdigitaltelevisionservices.Formoreinformationonthisissue,pleaseseequestion42.

41 Regulation of new media content

Is new media content and its delivery regulated differently from

traditional broadcast media? How?

Thereisnospecificregulationinconnectionwithnewmediacontentanddelivery,differentfromtraditionalbroadcastingmedia.Thesetwokindsofcontent,however,aresubjecttothegeneralregulations

applicableinthisregard(constitutionalrights,criminallaw,privatelaw,etc).Formoreinformationseequestion32.

42 Digital switchover

When is the switchover from analogue to digital broadcasting required

or when did it occur? How will radio frequencies freed up by the

switchover be reallocated?

InSeptember2009,SubtelcommunicatedthedecisiontoadoptthedigitaltelevisiontechnologystandardISDB-TwithMPEG4.ThisstandardwascreatedinJapanandmodifiedinBrazil.Thetelecomsauthoritieshavepredictedthatthedigitalswitchovershouldnothappenbefore2017.Inordertopreparefutureplayers,during2012Subtelgranted23

experimentalpermitstotransmitdigitaltelevisionindifferentregionsofChile.Todate12ofthesepermitshavebeenimplemented.Also,inordertospreadthistechnologythroughoutthecountry,

from2009OTBSconcessionarieshavebeenprovisionally trans-mittingdigitaltelevisionbymeansoftemporarypermitsthatarerenewed every year. Radiofrequencies(inthe700MHzband)thatarefreedfrom

thisswitchovershallbedistributedbymeansofapublicbidproc-ess.Subtelhasannounced,althoughnotofficially,thatsuchpublicbidprocessshouldtakeplaceduringthesecondsemesterof2013,andthatthefrequencieswouldbereallocatedinordertodistributenewPTSconcessionsbasedon4Gtechnology.On1February2013,thefirststepofthisprocesstookplacewiththepublicationintheOfficialGazetteofthetechnicalrulefortheuseofthe700MHzband.Accordingtothistechnicalrule,ChilehasadoptedtheAsia-Pacificcanalisationforthe700MHzband.Thespectrumblockstobeawarded,aswellasthekindofservicestobeprovided,willbeestablishedinthecorrespondingbiddingtermsandconditions(whichhavenotyetbeenreleasedbySubtel).

43 Digital formats

Does regulation restrict how broadcasters can use their spectrum

(multichannelling, high definition, data services)?

RegardingtheOTBS,theconcessionsystemestablishedbytheNTCLinordertograntthespectrumrequiredforthetransmissionofopentelevision,restrictstheuseofsuchaspectrumonlytothetransmissionofonetelevisionsignalthroughananaloguetransmission.However,itshouldbenotedthatanewbillregardingdigitaltelevisiontechnologyis currently being discussed in the Chilean congress, which, ifapprovedbythelegislativeauthoritiesofChile,willsubstantiallychangetheregulatoryframeworkofthistelecommunicationservice;eg,byauthorisingthebroadcastersorholdersofopentelevisionconcessions to transmit more than one television signal and to render complementaryservicessuchasmultichannelling,highdefinition,multi-programme,etc,overthesamespectrum.Inthecaseofsatellitetelevisionservices,becauseofthenature

ofthiskindofbroadcasting,thepermitwhichgrantsthenecessaryspectrumallowsthepermissionairetooffermultichannelling,highdefinition,multiprogrammes,etcoverthesamespectrum.Finally,thesituationoftheradiobroadcasterissimilartothat

oftheopentelevisionbroadcasters,sincethespectrumgrantedbymeansofaconcessionfortheradiobroadcastersisrestrictedonlyto the transmission of radio content destined to the free and direct receptionbythepublicingeneral.

Chile Carey


Regulatory agencies

44 Regulatory agencies

Which body or bodies regulate the communications sector? Is the

telecoms regulator separate from the broadcasting regulator?

Themainregulatorybodiesarethefollowing.

Ministry of Transportation and Telecommunication (MTT)The application, control and interpretation of the provisionsoftheGTLandotherregulationsontelecomscorrespondtotheMTT,which, forsuchpurposes,acts throughSubtel.TheMTT,actingthroughSubtel,ensuresthatalltelecomsservices,systemsandpremisesthatgenerateanykindofelectromagneticwavesareinstalled,operatedandexploitedinsuchamannerthattheydonotcausedamageorharmtopersonsortheirpropertiesorinterferewithothertelecomsservicesinChileorabroad.Finally,theMTT,actingthroughSubtel,controlsandsupervisestheoperationsofPTSandprotectssubscribers’rightsinconnectionwiththerenderingofsuch services.

Undersecretary of telecommunications (Subtel)SubtelisapublicentitysubordinatedtotheMTT.Itisthetelecom-municationsarmoftheMTT.SomeofthemaindutiesofSubtelareas follows: • proposingnationalpoliciesregardingtelecoms;• coordinatingtelecomswithinthecountry;• supervisingcompliancewith the laws, regulations, rulesandinternalprovisions,treatiesandinternationalagreementsregard-ingtelecoms,aswellasthetelecomspoliciesapprovedbythegovernment;

• issuinggeneralandmandatoryresolutions,instructionsandtech-nicalregulationsrequiredbythetelecomssector;and

• managingtheradio-electricspectrum.

Throughtheexerciseofitspowers,Subtelplaysanactiveroleinitsfield.Itisinvolvedinallstagesofprovisionoftelecomsservices,fromthegrantingoftherequiredconcessions,permitsorlicences,theircontrolanddevelopment,totheirterminationorexpiration.ItisalsodeeplyconcernedwithrulingonandsupervisingthetechnicalaspectsoftelecomsbusinessinChile.

The National Television Council (NTC)TheNTCisthemaintelevisionbroadcastingregulator.Ithasauthoritytoregulatecertaintechnicalaspectsoftelevisiontransmissions,aswellasthecontentofbroadcasting.Fromatechnicalperspective,theNTCistheentityinchargeofgrantingOTBSconcessions.Fromtheperspectiveofthebroadcastingcontent,theNTCismainlyconcernedwiththesupervisionoftheproperperformanceoftelevisionservices,whetherOTBSorCATV.

45 Establishment of regulatory agencies

How is each regulator established and to what extent is it independent

of network operators, service providers and government?

TheMTT,SubtelandtheNTCareregulatorsestablishedbylaw.BoththeMTTandSubtelaredirectlysubordinatedtothepresidentoftherepublicand,therefore,tothegovernment.Incontrast,theNTCisanautonomousnon-centralisedpublicentity,withitsownlegalstatus;itsrelationshipwiththepresidentoftherepublicisestab-lished through the general government secretary.Allsuchregulatoryagenciesarecompletelyindependentfrom

Chileantelecomsandbroadcastingoperators.Thereisanewbillcurrentlybeingdiscussedincongress,which,

ifapproved,willcreateaSuperintendenceofTelecommunications.Thisentitywillbeapublicservice,autonomous,non-centralisedandwithitsownpatrimony.Theroleofthisnewsuperintendencewillbe,

amongothers,supervisionoftheaccomplishmentoflocalregulationbyoperatorsandtheimpositionofadministrativesanctionsifsuchregulations arebreachedby them (these functions are currentlyperformedbySubtelandwillbetransferredtothenewentity).

46 Appeal procedure

How can decisions of the regulators be challenged and on what

bases?

TheGTLandtheNTCLestablishspecificproceduresunderwhichtelecoms regulators’ decisions may be challenged. Most suchproceduresallowthepossibilitytoappealsuchdecisionsbeforetheordinarycourtsofjustice.

Data retention, interception and use

47 Interception and data protection

Do any special rules require operators to assist government in certain

conditions to intercept telecommunications messages? Explain the

interaction between interception and data protection and privacy laws.

Article19(4)oftheChileanConstitutionestablishestherightof‘respectandprotectiontoprivateandpubliclifeandtothehonourofapersonandhisfamily’;andarticle19(5)establishestherightof‘non-violationofhomeandofanywayofprivatecommunication’,settingforththatprivatecommunicationsanddocumentsmayonlybeintercepted,openedorregisteredincasesandmannersdeterminedbythelaw.Additionally,thePersonalDataProtectionLawestab-lishes,asageneralprinciple,thatsaveforcertainspecificexception(eg,dataavailablefromsourcesaccessibletothepublic,etc),itismandatorytoobtainthepriorwrittenconsentofthedatasubjecttogatherandprocesspersonaldata.Ifnot,thebreachingpartymaybeforcedtoindemnifythedatasubjectforanydamagescausedbysuchbreach.However,undercertainstatutes(eg,theCriminalProcedural

Code,Anti-TerroristLawandAnti-DrugLaw)ChileanCriminalCourtsmayinstructatelecomsoperatortointerceptcommunica-tionsfromortoanyperson,soastodeterminesuchperson’seventualliabilityincriminaloffences.Inthesecases,telephoneandtelecomsoperatorsshallfacilitate

theinvestigatorswithallthemeansnecessarytointerceptthetargetedcommunicationsassoonaspossible.Forthispurpose,telephoneandtelecomsoperatorsshallkeepatthedisposalofthePublicMinistry,onaconfidentialbasis,anupdatedlistoftheirauthorisedIPaddressrangesandaregistryoftheIPnumbersoftheconnectionsmadebytheirusersduring,atleast,theprecedingsixmonths.Refusaltointer-ceptcommunicationswhenorderedbyacourtshallbeconsidereda criminal offence.Inthisregard,inSeptember2005theMTTissuedaregulation

establishingtheproceduresthatshouldbeadoptedinadvancebythetelecommunicationsserviceprovidersintheeventthattheyarejudi-ciallyrequiredtointerceptandrecordcommunicationsofitsusers.

48 Data retention and disclosure obligations

What are the obligations for operators and service providers to retain

customer data? What are the corresponding disclosure obligations?

Will they be compensated for their efforts?

TheGTLdoesnotexpresslyorderthetelecommunicationsopera-torsandserviceproviderstoretainthedataofitscustomersand,therefore,theywillnotbecompensatedfordoingso.TheCriminalProcedureCode,however,providesthattelecoms

operatorsshallkeepanupdatedrecordoftheirIPaddressrangesandtheIPnumbersoftheconnectionsmadebytheircustomersforaperiodofsixmonths.Formoreinformationonthismatter,pleaseseequestion47.

Carey Chile


49 Unsolicited communications

Does regulation prohibit unsolicited communications? Are there

exceptions to the prohibition?

Unsolicitedcommunicationssentbye-mailareallowedinChileonlyforadvertisingpurposes.Thiskindofcommunicationshallcomplywithseveralconditions,suchastheobligationofthesendertoclearlyspecifyitsadvertisingpurposesandthesender’sidentity.Addition-ally, unsolicited advertising communications shall contain a valid e-mailaddresstowhichthereceivermaydemandthesuspensionofthee-mails.Oncesuchsuspensionisrequested,thesenderoftheunsolicitedcommunicationsshallimmediatelystopthem.

Competition and merger control

50 Competition and telecoms and broadcasting regulation

What is the scope of the general competition authority and the

sectoral regulators in the telecoms, broadcasting and new media

sectors? Are there mechanisms to avoid conflicting jurisdiction? Is

there a specific mechanism to ensure the consistent application of

competition and sectoral regulation? Are there special rules for this

sector and how do competition regulators handle the interaction of old

and new media?

UnderChileanlaw,theCompetitionCourtshallresolveallissuesrelatingtocompetitionmatters(includinganyissuerelatingtocom-petitionwithinthetelecoms,broadcastingornewmediamarkets).Assuch,telecomsandbroadcastingauthoritiesmayonlyactastechnicaladviserstotheCompetitionCourt.Therefore,thereshouldnotbeanyconflictbetweenthetelecomsandcompetitionauthorities.Inordertoensuretheconsistentapplicationofcompetitionand

telecomsandbroadcastingsector-specificregulations,theCompeti-tionCourtislegallyempoweredtorequestthecompleteorpartial

amendmentorabrogationofanytelecomsorbroadcastinglaworregulation,providedthatsuchlawsorregulationsrestrictorimpairfreecompetitionandthattheCompetitionCourtconsidersthattheydamagethepublicinterest.Therearenospecialrulesregardingnewmediainconnection

withcompetitionregulation;therefore,inthecaseofanewmediacompetition issue, theCompetitionCourtand the telecomsandbroadcastingauthoritiesshallactandhandlethesituationinthesamemannerdescribedabove.

51 Competition law in the telecoms and broadcasting sectors

Are anti-competitive practices in these sectors controlled by regulation

or general competition law? Which regulator controls these practices?

Resolutionsinconnectionwithanti-competitivepractices(includinganypracticeaffectingthetelecomsandbroadcastingsectors)aretheresponsibilityoftheCompetitionCourtpursuanttogeneralantitrustlaw.Inaddition,theGTLexpresslyforbidsdiscriminatoryconductamongtelecomsoperators(especiallyinrelationtointerconnectionandinformationmatters).Insuchcases,theMTTisempoweredtocontrolandsupervisesuchdiscriminatorybehaviour.

52 Jurisdictional thresholds for review

What are the jurisdictional thresholds and substantive tests for

regulatory or competition law review of telecoms sector mergers,

acquisitions and joint ventures? Do these differ for transactions in the

broadcasting and new media sector?

Ingeneral, therearenomerger, jointventureoracquisitionpre-approvalrequirements.Likewise,thereisnolegalrequirementtonotifytheCompetitionCourtofthesematters,whetherbeforeoraftersuchtransactionsareclosed(notwithstandingtherequirement

The main highlights of the telecoms sector in 2012 were the following:

Number portability implementationThe implementation of number portability has already had positive consequences in the telecoms market, increasing competition by facilitating the entrance of new operators into the market (Nextel and VTR) and decreasing the tariffs charged to consumers. In fact, from the date of its implementation a considerable reduction in mobile telephony tariffs has occurred. Compared with 2011, prices have fallen approximately 20 per cent on post-paid plans and approximately 50 per cent on pre-paid plans.

The new mobile operators, VTR and Nextel, and the new MVNOs, Virgin Mobile, GTD Móvil and Netline, jointly captured more than 200,000 customers in 2012.

Enactment of the Antenna LawOn 11 June 2012 the bill regulating the installation of telecommunications antennas and towers become new Law No. 20,599 (the Antenna Law) and amended the GTL and the Urbanism and Construction Law DFL No. 458 by introducing into both several new requirements, restrictions and obligations for the installation of antennas and supporting towers.

The most relevant new requirements, restrictions and obligations, with which concessionaries will have to comply from now on, are:• obligationtoobtainauthorisationfromthemunicipal(local)

authority: now operators have to comply with a complex procedure in which the direct participation of the affected community is considered;

• mandatorycamouflageofantennatowersormitigationmeasuresin favour of the relevant community: the community affected by the installation of the antenna and its tower is now entitled to decide upon one of these two options;

• co-locationobligation:priortheinstallationofanantenna,therelevant concessionaire must verify if there is another tower belonging to a different telecoms operator on which is feasible

to add an additional antenna. This co-location obligation exceptionally applies with retroactive effect (ie, over antenna towers installed before the entering into force of the Antenna Law) in the following cases:

• in those territories which are already saturated with telecoms infrastructure; and

• in territories that have been declared as restricted radio-electric propagation zones;

• prohibitiononinstallingantennatowersinsensitiveareas(educational institutions, nursing homes, kindergartens, hospitals, clinics, etc) or on sites located within a certain distance from such places: regulations of sensitive areas also set forth co-location obligations with retroactive effect. In fact, concessionaries who own antenna towers installed prior the enactment of the Antenna Law could be obliged to reduce their height, relocate them or allow co-location with other operators.

4GIt is expected that in the second semester of 2013 Subtel will conduct a new public bid process for the distribution of the 700MHz band that will be freed as a consequence of the digital television switchover. This band would be reallocated and made available to PTS concessions based on 4G technology (LTE).

Digital televisionThe bill on digital television is delayed but will most probably become law during 2013. This new law will substantially change the regulatory framework for OTBS in Chile.

New Digital Agenda for 2013–2020A new Digital Agenda for 2013–2020 will be released by the government in 2013. This is being elaborated by the secretary of digital development, under Subtel, in order to have a digital plan of action for the next seven years. It is expected that the content of such agenda will be made available to the public in early 2013.

Update and trends

Chile Carey


ofobtainingSubtel’spriorapprovalforanyconcessiontransferthatcouldbeimplicitinamerger).However, any act or agreement related to a change in the

propertyofmediaoperatedunderconcessionsorpermitsgrantedbythestate(ie,OTBS,CATVandRBTSstations)shallbepreviouslynotifiedtothenationalantitrustattorneyfortheissuancebysuchauthority–withinthetermof30days–ofareportaboutanyeffectsonfreecompetition.Ifthereportrejectstherelevanttransaction,the national antitrust attorney shall file a consultation in this regard beforetheCompetitionCourt,whichshallultimatelyapproveorrejectthetransaction.Ifthenationalantitrustattorneydoesnotissuetheabove-mentionedreportwithin30daysfromthecorrespondingnotice,itshallbeunderstoodthatthenationalantitrustattorneyhasnoobjectiontoit.Notwithstandingthat,asageneralrule,thereisnopre-mergercontrolinChile,partiesinterestedinapotentialmerger,jointventureoracquisitionmayvoluntarilyconcurbeforetheCompetitionCourtand request theopinionof the courtonwhethertheintendedmerger,jointventureoracquisitionisagainstfreecompetition.Inthisregard,duringthepastfewyearstherehavebeentworelevantcasesofvoluntarypre-mergerinquiries:• themergerbetweenMetrópolisIntercomSAandVTRSA(thetwoleadingCATVprovidersinChile);and

• theacquisitionbyTelefónicaMóvilesSAofall theassetsofBellsouthCorporationlocatedinChile.

InbothcasesthemergerswereapprovedbytheCompetitionCourt,butsubjecttocompliancewithcertainconditionsand/ormitiga-tionmeasures.Additionally, theCompetitionCourtmayatanytimereviseproposedtransactionsinordertoascertainwhethertheyimpair, restrictoreliminate freecompetitionwithin the relevantmarket.Theseconclusionsareapplicabletotransactionsinboththetelecomsandbroadcastingsectors.

53 Merger control authorities

Which regulatory or competition authorities are responsible for the

review of mergers, acquisitions and joint ventures in the telecoms,

broadcasting and new media sectors?

Seequestion51.

54 Procedure and timescale

What are the procedures and associated timescales for review and

approval of telecoms and broadcasting mergers, acquisitions and joint

ventures?

Seequestions51and52.

Alfonso Silva [email protected] Eduardo Martin [email protected]

Isidora Goyenechea 2800, Floor 43 Tel: +56 2 2928 2240

Las Condes Fax: +56 2 2928 2628

Santiago www.carey.cl

Chile

Telecoms and media 2013 issn 1471-0447

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