Regulation and Competition Telecommunications in the Dominican Republic

Regulation and Competition: Telecommunications in the Dominican Republic Conference of the Caribbean/Latin American Action: Free Trade and Integration: Implications for the Caribbean Basin December 5 th, 2001 Hotel Intercontinental Miami, Florida Lic. Orlando Jorge Mera President Instituto Dominicano de las Telecomunicaciones (INDOTEL)

AGENDA • Telecoms Law No. 153 -98 • INDOTEL’s Role • Conclusions

Telecoms Law No. 153 -98 • Enacted May 27 th, 1998 • Creates a regulator with functional, jurisdictional and financial autonomy • Convergent regulation applicable to the following sectors: telephony, radio, TV and cable

Telecoms Law No. 153 -98 Objectives of Public and Social Interest • Promote the development of telecommunications • Ensure fair, efficient and sustainable competition • Protect consumers rights • Manage the spectrum efficiently • Promote Universal Service

INDOTEL’s Role • Promote Investments • Establish Policies and Norms • Supervise Service Providers • Defend Consumers • Manage the Spectrum • Solve Controversies • Administer the Telecommunications Development Fund

INVESTMENT CONSUMERS SPECTRUM MANAGEMENT POLICIES & NORMS SUPERVISION CONTROVERSIES

Promote Investments Wireline Source: INDOTEL Industry Indicators

Promote Investments Wireless Source: INDOTEL Industry Indicators

Promote Investments Internet Source: INDOTEL Industry Indicators

Promote Investments Industry Indicators 1996 2000 2001 3 rd. Q GDP Growth 7. 2 % 7. 8 % 1. 8 % Telecoms GDP Share 3. 8 % 5. 4 % 6. 6 % Telecoms Growth Rate 16. 3 % 15. 7 % 22. 7 % Sources: 1. - Dominican Economic Report January-December 200, Central Bank of the Dominican Republic, March 2001 2. - Dominican Economic Report January-December 200, Central Bank of the Dominican Republic, August 2001 3. - Central Bank Homepage: http: //www. bancentral. gov. do/pib. html

Promote Investments • • • Fiber Optic Project CDE-INDOTEL - commerce Agenda Entry of new Telco’s and ISP’s

Establish Policies and Norms • Telecoms Law No. 153 -98 establishes a general regulatory framework. • Regulator’s task is to establish policies and norms to enhance regulatory framework • Regulation of Services NOT Technology • Minimum Regulation Principle

Establish Policies and Norms September 200 to date: • Universal Service Policy • Universal Service Plan 2001 -2003 • Rules concerning the Telecommunications Development Fund • Rules for the Solution of Controversies between Consumers and Operators • Rules establishing the Prohibition of the Interception of Telecommunications

Establish Policies and Norms Under Public consultation • Regulation concerning the Acquisition of Authorizations to Provide Telecommunications Services in the D. R. • National Frequency Attribution Plan • Regulation of provision of Cable Service • Regulation of provision of FM Service • Rules concerning the Contribution to the Development of Telecommunications • Regulation for Ham Radio Users • Routing Technical Plan • Interconnection (SOON TO BE RELEASED)

Supervise Service Providers • Revision of all concessions and licenses granted prior and under Telecoms Law No. 153 -98 to ensure legality of these authorizations • Shutdown of illegal radio and TV stations • Shutdown of illegal call centers

Protect Consumers Rights • Establishment of a Assistance Center for Consumers • Establishment of rules applicable to consumer complaints • Educational lectures on consumers rights and obligations

Manage the Spectrum • Limited resource • Organization of the Spectrum • Administer efficiently the available frequencies • Implementation of a spectrum monitoring system

Solve Controversies • Case by case basis • Cases of frequency interferences between radio, TV and cable operators • Interconnection disputes

Administer the Telecommunications Development Fund Rural Telephony Tele-centers Universal Access Cortesía de www. aguaita. com Teleeducation Cortesía de www. aguaita. com Tele- • Rural Telephony Project medicine • Tele-centers Project • Telemedicine Project (in coordination with State Secretariat of Health and Public Assistance) • Teleducation Project (in coordination with State Secretariat of Education)

Conclusions • Regulator must balance: market needs vs. consumers needs • Regulator should be accessible and its actions must be transparent • Regulation should incentive the existence of conditions of a competitive market

Th nk You!

Lic. ORLANDO JORGE MERA PRESIDENT – INDOTEL Internet : http: //www. indotel. org. do : ojorge@indotel. org. do Tel. : (809) 473 -8553 Fax: (809) 732 -3904 Av. Abraham Lincoln No. 962, Edificio Osiris • Santo Domingo, Dominican Republic •