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 5th, 2001 Hotel Intercontinental Miami, Florida Lic. Orlando Jorge Mera President Instituto Dominicano de las Telecomunicaciones (INDOTEL)

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

Telecoms Law No. 153-98 Enacted May 27th, 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

CONSUMERS INVESTMENT POLICIES & NORMS SPECTRUM MANAGEMENT POLICIES & NORMS SUPERVISION CONTROVERSIES

Promote Investments Wireline Industry Indicators Source: INDOTEL

Promote Investments Wireless Industry Indicators Source: INDOTEL

Promote Investments Internet Industry Indicators Source: INDOTEL

Promote Investments Industry Indicators 1996 2000 2001 GDP Growth 3rd. Q GDP Growth Telecoms GDP Share Telecoms Growth Rate 7.2 % 7.8 % 1.8 % 3.8 % 5.4 % 6.6 % 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

Under Public consultation 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 Tele-education Cortesía de www.aguaita.com Universal Access Tele-medicine Cortesía de www.aguaita.com Rural Telephony Project 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 Internet : http://www.indotel.org.do 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•