TELECOMMUNICATIONS

Decree No. 80/97

Amend Decree No. 1185/90, adjusting the functioning of the National Communications Commission.

Bs. As., 29/1/97

VISTO article 42 of the NATIONAL CONSTITUTION, the Nros Laws. 19,798 and 20,216 and their respective amendments, and Nros Decrees. 1185/90, 214/92, 660/96 and their respective modifiers, and

CONSIDERING:

That article 42 of the NATIONAL CONSTITUTION states that "authorities will provide for the protection of..." the rights of users and consumers "...to the defense of competition against all forms of distortion of markets, to the control of natural and legal monopolies, to that of the

quality and efficiency of public services...", in order to guarantee the general well-being.

That the laws quoted in the Hittite, together with the spirit of the Nros Laws. 22,262 Defence of Competition and 23,696 of State Reform and Decree No. 2284/91 ratified by Act No. 24,307 of

Economic deregulation, and Nros Decrees. 731/89, 62/90, 1185/90, 2332/90, 214/92, 506/92, 663/92, 2792/92, 1163/93, 1187/93, 1461/93, 1587/93 and 2247/93, and their respective modifications, constitute the basis for the regulatory frameworks for telecommunications and postal services.

That under article 42 of the NATIONAL CONSTITUTION it is the obligation of the National Government to harmonize the rules governing the functioning and competence of the entities of its dependence with the principles established therein, which, under article 75, paragraph 22 of the norm.

They agree with those who guide the action of the World Trade Organization (Law No. 24.425) and the Common Market of the South (Law No. 23.981), of which the ARGENTINA REPUBLIC is a party.

That article 31 of Decree No. 660/96 replaced by its similar 1260/96 provided for merging the National Commissions on Telecommunications and Posts and Telegraphs, forming the NATIONAL COMMISSION ON COMMUNICATIONS as a decentralized body of the SECRETARIAT OF NATIONAL COMMUNICATIONS.

That by article 36 of the decree quoted in the above consideration, and continuing with the policy of promoting and defending competition in the provision of goods and services provided by articles 1 to 5 of Decree No. 2284/91, the NATIONAL EXECUTIVE POWER decided to strengthen the NATIONAL COMMISSION DEFENSA OF COMPETENCE.

Attentive to the merger of organisms created by decree, it is feasible to immediately grant operativity to the NATIONAL COMMISSION OF COMMUNICATIONS.

That it is necessary to adapt to the operation of the new entity the organic provisions of Decree No. 1185/90 modified by their similar Nros. 2728/90, 506/92, 663/92, 761/93, 1461/93, 2160/93, 702/95 and 515/96 as the norm for the establishment of the NATIONAL COMMISSION ON TELECOMMUNICATIONS.

It must be incorporated into the norm governing the regulatory and control agency the existing provisions of the Nros Decrees. 214/92, 2792/92, 1163/93, 1187/93 and 2247/93, referring to postal activity.

Attentive to the constitutional and legal mandates and international commitments, but respecting the legal security prevailing in the country, it is necessary to adopt a rule of operation and attribution of competences of the regulatory entity that respects such principles, as well as

provide it with sufficient powers in the field of the prevention and punishment of anti-competitive behaviours.

That UNITY OF REFORM AND MODERNIZATION THE STATE has taken the intervention that belongs to it.

That the present measure is determined in the use of the powers conferred by article 99, paragraphs 1 and 2 of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1... Replace article 1 of Decree No. 1185/90 and its amendments with the following: "ARTICULO 1.- CREATION. Consider the NATIONAL COMMISSION ON COMMUNICATIONS under the SECRETARIAT OF NATIONAL COMMUNICATIONS. "

Art. 2°... Replace article 3 of Decree No. 1185/90 and its amendments, with the following: JURIDIC NATURE. The NATIONAL COMMISSION ON COMMUNICATIONS is a decentralized body of the SECRETARIAT OF NATIONAL COMMUNICATIONS. "

Art. 3°- Replace article 4 of Decree No. 1185/90 and its amendments. for the following: "ARTICLE 4°. - FUNTIONS. The NATIONAL COMMUNICATIONS COMMISSION will have the functions of administrative and technical regulation, control, control and verification in telecommunications and postal matters, in accordance with the applicable regulations and policies established by the National Government through the SECRETARIAT OF COMMUNICATIONS OF THE NATIONAL PRESIDENCE."

Art. 4°- Replace Article 5 of Decree No. 1185/90 and its amendments, with the following: "ARTICULO 5o.- The terms defined in Annex I, Chapter XIX of Decree No. 62/90 and its amendments shall be governed accordingly. For the purposes of this decree, the term "telecommunications" is understood to be exclusive of broadcasting, except as expressly provided otherwise.

It should be noted that in the current legislation when reference is made to the NATIONAL TELECOMMUNICATIONS COMMISSION and the NATIONAL COMMISSION ON CORRECT AND TELEGRAPHICS, the NATIONAL COMMUNICATIONS COMMISSION should be read in accordance with the competences established by the current regulations."

Art. 5°- Amend the first paragraph of Article 6 of Decree No. 1185/90 and its amendments, as follows: FACULTIES AND DEBERS. The NATIONAL COMMISSION ON COMMUNICATIONS shall, in accordance with the communications policies defined by the NATIONAL EXECUTIVE POWER through the SECRETARY OF COMMUNICATIONS OF THE NATIONAL PRESIDENCE, exercise the following functions..."

Art. 6°- Replace subparagraphs (a), (c), (d), (i), (i), (1), (o), (p). (t), (u) and (v) of Article 6 of Decree No. 1185/90 and its amendments, with the following:

“(a) Apply, interpret and enforce the decrees and other regulatory rules on telecommunications and postal matters, in accordance with the powers assigned by the current regulations”;

"c) Assist the SECRETARIAT OF PRESIDENCE COMMUNICATIONS IN THE NATION in updating and developing the Basic Telecommunications Technical Plans as they relate to operational compatibility, minimum service quality and interconnection of networks";

"d) Assist the SECRETARIAT OF PRESIDENCE COMMUNICATIONS OF THE NATION in the dictation of the General Regulations for telecommunications services and for postal activity: and in particular of the General Regulations of Customers of the Basic Telephony Service, of Customers of Independent Operators and Cooperatives, of Quality of the Telephonic Basic Service, of Sanctions to Independent Operators, of Mobile Telephony Services, provided for by point 7.9, third paragraph of the Pliego approved

Revisions, Administration, Management and Control of Radioelectric Spectrum, Licensing for Operators of the National and International Telephonic Service, Economic, Accounting and Cost Information of the Licensors of the Telephonic Basic Service and its related companies, of Telecommunications Services Licensing, of Mobile Telecommunications Services by Satellite, of Taxes, Rights, Arances and Public Service

"i) Preventing anti-competitive behaviours; monopolistic or discriminatory, including unfair subsidies that receive competition services from the exclusive or uncompetitive services. To that end, you may request the intervention of the NATIONAL COMMISSION ON COMPETITION DEFENSA";

"n" Ensure the quality and technical compatibility of the public telecommunications network for which it will assist the SECRETARIAT OF NATIONAL COMMUNICATIONS in:

(1) The development, updating and administration of key technical plans in such areas as numeration, transmission, signalling, roaming, etc., in accordance with international standards and recommendations in the field and avoiding unduly constraining borrowers in network configuration or selection of their equipment.

(2) The adoption of the necessary measures to enable the public telecommunications network to incorporate new services, in particular those for which there is a reasonable demand";

"o) To carry out actions to achieve the development of applied technological research in the field of its competence";

"p) Perform specific technical tasks in the subjects of its competence on behalf of third parties";

"s) Perceiving telecommunications and postal fees, duties and tariffs, and attending the SECRETARIAT OF NATIONAL COMMUNICATIONS in their fixation";

"t) Apply the penalties provided for in licences, authorizations or permits and the regulations applicable in the postal and telecommunications field. Once you sign at administrative headquarters, you will be able to execute them judicially in accordance with the specific rules in the matter."

"(u) To exercise, in accordance with the competences assigned by the current regulations, the functions assigned by the regulatory frameworks of telecommunications and postcards to the Regulatory, Implementation or Control Authority"; and

(v) With regard to the international field:

(1) Assist the SECRETARIAT OF PRESIDENCE COMMUNICATIONS OF NATION in the exercise of national representation to international telecommunications and postal agencies and entities, in the coordination of the private sector ' s participation in them if appropriate, and in the elaboration and negotiation of international treaties, agreements or conventions on the subjects of their competence, and technical cooperation or assistance, without prejudice to the participation of S.P.S.I. in all daily technical operations, with INTELSAT and INMARSAT

and its participation in the Committee of Representatives of Operations and the Committee on Traffic, without prejudice to the functions expressly delegated by the SECRETARIAT OF COMMUNICATIONS OF THE PRESIDENCE NATION as a signatory and part of INTELSAT;

(2) To receive and review the agreements concerning the routing of international traffic, the accounting balance between correspondents, as well as the agreements on traffic and the provision of telecommunications services in which the S.P.S.I. intervenes, or in case of dissolution, the Licensing Societies, with other administrations or service providers of other countries. The review will be carried out for the purpose of verifying compliance with the conditions of the licences and that the public interest is not injured.

To this end, the National Commission shall decide on the term of VEINTE (20) administrative working days counted from the receipt of the agreements. If the term is not pronounced by the National Commission, the agreement shall be revised;

(3) Assist the SECRETARIAT OF PRESIDENCE COMMUNICATIONS OF NATION in the determination of the rules for the selection of correspondents abroad for the provision of international services, ensuring that the competition between them does not conflict with the exclusive rights of the S.P.S.I. or, in the event of its dissolution, of the Licensing Companies, or affects the public interest; and

4) Fix the equivalence of Franco Oro in Argentine currency, in order to be used in the relevant international services in accordance with the existing international treaties and conventions".

Art. 7o- Incorporate as subparagraphs (a'), (b'), (c') and (d') of Article 6 of the Decree No. 1185/90 the following: "a') Understand in all areas where the rules governing postal activity are applicable at the national and international levels when the provision of postal services results in the country, as established by the regulatory framework of the activity";

"b') Fiscalize compliance with the obligations and conditions in which private operators and the Official Mail provide postal services, either on their own or at the request of the interested party. It shall be governed by the provisions of the postal regulatory framework and shall in all cases ensure the exercise of the right of defence of the parties. In the same way, it will prevent any anti-competitive or monopoly manoeuvre, always having the purpose of protecting the rights of the client, understood as such both the sender and the recipient of the postal shipment."

"c') Solve compliance with the minimum standards of aptitude and quality of the postal services that are denounced"; and

"d') Take the National Register of Postal Services Providers."

Art. 8°- Incorporate, as a second paragraph, article 8 of Decree No. 1185/90 and its amendments, the following: "In postal matters, it shall exercise the power of the Police by controlling the effective enforcement of laws, decrees and regulations, and by monitoring the activity carried out by the Official Mail and private providers of postal services, ensuring the quality of the benefits and the observance of the principles of regularity, equality, generality and continuity in the development of the activity

inviolability and postal secrecy."

Art. 9°- Amend Article 9 of Decree No. 1185/90 and its amendments, which will read as follows: LICENCES, AUTHORIZATIONS AND PERMISSIONS. The NATIONAL COMMISSION ON COMMUNICATIONS will attend the SECRETARIAT OF NATIONAL PRESIDENCE COMMUNICATIONS in:

(a) E1 award and declaration of expiration of licences for telecommunications services, with the exception of those to which exclusivity is appropriate.

(b) The extension of the exclusivity regime for telecommunications services licences granted under the said regime, where such extension is provided for in the respective licence.

(c) The award and the declaration of expiry of the authorizations and, if any, of the permits.

(d) The modification of the conditions under which the authorizations are granted or granted and, where appropriate, the permits.

(e) The modification of the conditions under which telecommunications licences are granted or granted, in any of the following cases:

(1) When provided for in such licences;

(2) When the express conformity of the licensors is obtained, the agreements to which the licences granted in exclusivity are to be lifted for approval by the NATIONAL EXECUTIVE POWER."

Art. 10.-Replace article 13 of Decree No. 1185/90 and its amendments, which shall read as follows: DIRECTION. The conduct of the NATIONAL COMMISSION OF COMMUNICATIONS will be exercised by a Board consisting of OCHO (8) members, of which UNO (1) will be President, DOS (2) Vice-Presidents, and the rest of the Vocals, all appointed by the NATIONAL EXECUTIVE PODER.

The vowels will last CINCO (5) years in their functions, with the exception established by article 17, being able to be reappointed for a single additional period. The President and Vice-Presidents shall remain the same and may also be reappointed for one additional period.

They shall constitute the CUATRO quorum (4) members, one of which shall be the President or a Vice-President. Resolutions will be adopted by a simple majority. In the event of the presidency ' s leave or temporary absence of the President, a Vice-President shall replace it. The act of designation of the Vice-Presidents shall have its priority order. The president or whoever does his time will have a double vote in case of a tie."

Art. 11.- Replace article 15 (a), (c) and (d) of Decree No. 1185/90 and its amendments with the following:

"a) Develop and elevate the SECRETARIAT OF PRESIDENCE COMMUNICATIONS OF THE NATION the annual expenditure budget, the calculation of resources and the investment account";

(c) Decide on all types of contracts, reciprocity agreements and the provision of services with other bodies, entities or individuals or legal entities; and

"(d) To instruct third parties to undertake studies, research, revisions and other professional tasks of a scientific, technical, legal or accounting nature."

Art. 12.- Replace article 16, paragraph (c) of Decree No. 1185/90 and its amendments, with the following: "(c) To exercise the internal administration of the entity, and to appoint, promote, remove, punish and direct the staff, together with the Vice-Presidents, with whom it will sign the relevant administrative acts."

Art. 13.- Replace article 17 of Decree No. 1185/90 and its amendments, with the following: "ARTICULO 17.- REPRESENTATION OF PROVINCIES. SECRETARIAT OF PRESIDENCE COMMUNICATIONS OF THE NATION shall dictate the regulation that guarantees representation - through UN (1) Vocal in the Directory of the NATIONAL COMMUNICATIONS COMMISSION- of the provinces. The regulation will provide for the lifting of a tea to the NATIONAL EXECUTIVE POWER, who will designate the representative for a period of one (1) year, and may be re-elected until once. It should also be foreseen that, in the event that the tea is not elevated within the DOS (2) months of the cow, the direct designation of the representative will be carried out."

Art. 14.- Replace article 30 (b) of Decree No. 1185/90 and its amendments and add a final paragraph to the article, which shall be drafted as follows: "b) The NATIONAL COMMISSION ON COMMUNICATIONS may, on an extraordinary basis, provide that certain prosecutors or proceedings on aspects of serious social impact include a public hearing to which members of the Commission may present themselves for oral demonstrations

to the effect of the public with the anticipation that is available and which are admitted to the effect.

For the purposes of this article, the SECRETARY-GENERAL NATION shall dictate the corresponding general rules."

Art. 15.- Replace article 39 of Decree No. 1185/90 and its amendments, with the following: "ARTICULO 39. The NATIONAL AUDITORY shall exercise the external control of the NATIONAL COMMUNICATIONS COMMISSION, in accordance with Act No. 24.156 on Financial Administration and National Public Sector Control Systems.

Art. 16.- Replace article 40 of Decree No. 1185/90 and its amendments. for the following: "ARTICULO 40.- INTERNAL CONTROL: The internal control of the NATIONAL COMMISSION OF COMMUNICATIONS shall be carried out by the General SINDICATURA OF NATION, in accordance with the provisions of Act No. 24.156 on Financial Administration and National Public Sector Control Systems."

Art. 17.- Refer to articles 2 and 24 of Decree No. 214 of 24 January 1992, Decree No. 2792 of 29 December 1992, and Decree No. 1163 of 4 June 1993.

Art. 18.- To transmit to the NATIONAL COMMISSION ON COMMUNICATIONS the budgetary resources and credits, assets and liabilities, the personnel and the movable and immovable property of the NATIONAL COMMISSION ON TELECOMMUNICATIONS and the NATIONAL COMMISSION ON CORREO AND TELEGRAPHICS.

Art. 19.- Instruct the NATIONAL COMMITTEE OF COMMUNICATIONS of the SECRETARIAT OF COMMUNICATIONS OF THE NATIONAL PRESIDENCE so that, within the period of the ninth 90) days from the publication of the present, refer to the SECRETARIAT OF THE PUBLIC FUNCTION OF THE PRESIDENCE OF THE JEFATURA DE GABINETE, OF NATION, the lower openings of its structure, as well as the necessary regulations and other rules for the proper fulfilment of the objectives of the agency.

Art. 20. Instruct the SECRETARIAT OF COMMUNICATIONS OF THE NATIONAL REPRESIDENCE to give an orderly text of Decree No. 1185/90 and its amendments, as well as of all the regulations incorporated in this decree, within the period of SESENTA (60).

Art. 21.- Contact, post, give to the National Directorate of the Official Register and archívese.-MENEM.- Jorge A. Rodríguez.- Carlos V. Corach.