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Telecommunications Act

Original Language Title: LEY DE TELECOMUNICACIONES

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LAW NO 1632 LAW OF JULY 5, 1995

GONZALO SÁNCHEZ DE LOZADA CONSTITUTIONAL PRESIDENT OF THE REPUBLIC

For the Honorable National Congress, it has sanctioned the following Law: THE H. NATIONAL CONGRESS, DECREE: TELECOMMUNICATIONS LAW TITLE I

GENERAL PROVISIONS Article 1.OBJECT. This law lays down the rules for regulating public services and telecommunications activities, comprising the transmission, broadcast and reception, through a Public or Private Network, of signals, symbols, texts, fixed and moving images, voice, sounds, data or information of any kind, or applications that facilitate the same, by wire or physical line, radio, hertziana waves, optical or other systems electromagnetic of any kind or type. They are subject to this law, individual and collective, national and foreign persons who perform such activities originated or completed in the national territory.

Article 2. DEFINITIONS. For the purposes of this law, the following definitions are adopted: Operator. It is the individual or collective, public or private person who manages, controls and maintains a Network

of Telecommunications of its property. Service Provider. It is the individual or collective person providing Telecommunications Services to the Public. Network. Are the facilities that as a whole establish channels or circuits between two or more points to drive symbols, signals, texts, images, voice, sounds, data, information of any nature or other type of electronic signals, by physical lines, electromagnetic waves, optical means, any electromagnetic system or other type of connection. They are part of the Network, the teams and programs developed for the operation of the same. Private Network. It is that operated and used exclusively by an individual or collective person for their own use, for the purpose of connecting several facilities of their property or under their control. This Network is not interconnected with a Public Network switched within the national territory or abroad. Public Network. It is the one used to provide Telecommunications Services to the Public, to which terminal equipment of the users is connected, through certain terminal points. Cell Service. It is the one that is provided through radio-electric means in the specifically determined bands, using mobile or fixed terminal equipment within the operator's service area, which is configured in cells. Personal Communication Service. It is a Basic Mobile Digital Telecommunications Service that uses micro cells in the 1.8 GHz to 2.1 GHz frequency band. Telecommunications Service to the Public. It is a switched, dedicated, broadcast or distribution telecom service, which is provided to another or other individual or collective persons outside the Service Provider. It also includes resale services and services provided by a collective person to its members, associates or members, where the social object of the same is the provision of telecommunications services. It does not include Value Added Services. Local Telecommunications Service. It is the one that is provided between subscribers connected to the Public Network by fixed terminal equipment and located within a geographical area defined as such by the Superintendence of Telecommunications. They are used to provide Fixed Basic Telecommunications Services using physical line or electromagnetic frequencies specific to this service.

Distance Service. It is a Public Service provided between switching stations, located in different Local Telecommunications Service areas, within the national territory. International Distance Service. It is a Public Service provided between an area located within the national territory and another located abroad. Public Telephone Service. It is available to the public, through telephone stands, booths or terminal equipment powered by coins, tokens or cards. Basic Telecommunications Services. These are those that group the Fixed Basic Services of Telecommunications and the Mobile Basic Services of Telecommunications. Fixed Basic Telecommunications Services. These are those that provide real-time switched voice communications between Public Network users, using fixed terminal equipment, including when they are transmitted in digitized form. Mobile Basic Telecommunications Services. These are those provided by terrestrial radio stations with mobile or portable terminal equipment, which use specific frequency bands, to provide switched communications from real time voice between users of Public Networks. Reverted Call Services. These are those originated in the country, which allow by any means to obtain a tone or access to a Public Network located outside the national territory, to carry out a long distance communication, which is recorded as a call originating from that Network. They are not considered part of these services, those in which there is a specific agreement signed by a national concessionaire authorized to provide Long Distance Services International and approved by the Superintendency of Telecommunications. Signal Distribution Services. These are those that are provided only by subscription, through stations whose emissions are distributed to be received by determined users and the communication is made in one sense. Broadcasting Services or Signals Broadcast. These are those whose emissions are intended to be received directly by the public, without any restriction other than that of having a receiving apparatus. These services include radio and television, the communication of which is carried out in a single sense. Data Transmission Services. These are those provided through a Public or Private Network, which allow to carry out coded communications between computer equipment located in different places. These do not include Basic Telecommunications Services transmitted using digital systems. Value Added Services. These are those telecommunications services that use a Public Network and computerized processing applications, and do not use transmission circuits, unless they are provided by a dealer. These applications act in the form, content, code, protocol of the information transmitted by the user or provide additional information, different or restructured, or involve it with stored information. They do not include Basic Telecommunications Services. Non-Competitive Services. They are those who provide a single individual or collective person or who, without being the only one, are not exposed to substantial competition in the market. Radioamateurs ' Service. It is the activity of intercommunication and research for amateurs, who seek to develop the telecommunications technique and which allows communication using bands and frequencies authorized for such effect. These communications may not be related to religious, political, commercial or any purpose of profit, either in an ostensible or simulated form. Price Cap. It is the methodology used for fixing the 1imite maximum of the weighted average price of a non-Competitive Services basket. Other definitions applicable to the telecommunications sector shall be established by regulation, taking into account the recommendations of the International Telecommunication Union or other international conventions.

TITLE II

INSTITUTIONAL ORGANIZATION Article 3. FROM THE MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT AND THE NATIONAL SECRETARIAT FOR TRANSPORT, COMMUNICATION AND CIVIL AERONAUTICS. The Ministry of Finance and Economic Development and the National Secretariat for Transport, Communication and Civil Aeronautics Perform the functions

concerning the Telecommunications sector, established in Law No. 1493 of 17 September 1993 and its regulatory provisions. The Executive Branch will regulate the telecommunications sector, establishing general rules for its implementation by the Superintendency of Telecommunications.

Article 4. FUNCTIONS AND ATTRIBUTIONS OF THE TELECOMMUNICATIONS SUPERINTENDENCE. The Superintendence of Telecommunications is an organ of the System of Sectoral Regulation, created by Law No. 1600 of October 28, 1994, which regulates the public service Telecommunications, which the Superintendent of Telecommunications finds and whose specific powers, in addition to those established in that law, are as follows:

Subscribe to concession contracts and amend them within the framework of the law;

Control and coordinate the use of the electromagnetic spectrum and controlling the means and equipment through which electromagnetic waves are emitted. Also, regulate the use of frequencies and protect them against any harmful interference;

Set the technical standard required to operate and improve telecommunications services;

Require the necessary information for the (i) compliance with their duties to individual and collective persons providing telecommunications services; In the case of Broadcasting Service Providers or Signals Broadcast, only technical information will be required;

Develop and maintain the fundamental technical plans defined by the International Telecommunication Union;

Consider, approve, or reject agreements signed by the International Long Distance Service Providers that establish or modify accounting rates;

Manage the resources allocated in your budget;

Approve the models of adherence contracts between the Service Provider and the users, agreement to regulation;

Dispose the use of accounting standards for their application to the Basic Services of Telecommunications and order the Providers of such Services the accounting and administrative separation of the different services provided;

Identify, under the criteria set out in the regulation, Non-Competitive Services;

Authorize transfers, disposals, leases, or any act of having a concession or license; and

Performing the other acts which are necessary for the performance of their duties, according to the set forth in this law and its regulations.

TITLE III

CONCESSIONS, LICENSES, REGISTRATIONS AND DEADLINES CHAPTER I

CONCESSIONS Article 5. CONCESSIONS. The Superintendency of Telecommunications will grant concessions through the subscription of concession contracts, under the procedure of public tender, for the operation of Public Telecommunications Networks and the provision of Telecommunications services to the Public, provided that the services are complied with

technical and legal requirements, and one of the following conditions:

When the plans drawn up by the National Secretariat for Transport, Communication and Civil Aeronautics are determined, approved by the Ministries of Finance and of Economic Development; or,

When there is an application from interested party, that meets the technical and economic requirements set out in regulation.

In cases where licenses are required directly related to the grant, the same will be jointly granted. The time limit for such concessions shall be similar to the time limit for licences and may not exceed the maximum laid down for licences. Telecommunications services, which, for technical and economic reasons, accept an unlimited number of suppliers, as laid down in the Regulation, shall not require a public invitation to tender. In such circumstances, the Superintendent of Telecommunications will grant concessions in direct form, upon request from interested parties and provided that the requirements established by this law are met. Article 6. PUBLICATION AND OPPOSITION. To grant concessions and to conclude concession contracts, the Telecommunications Superintendence will publish an extract of the concession of the service to be tendered, through at least one newspaper National circulation for three consecutive days. Within fifteen (15) days from the date of the last publication, the owners of goods and other persons who may be affected by the grant of such concession shall have access to the relevant documentation for to formulate to the Superintendency of Telecommunications, the objections and observations that they deem convenient, the same ones that will be processed and resolved by the Superintendence of Telecommunications, according to regulation.

Article 7. CONCESSION CONTRACTS. The concession contracts, in addition to the general requirements established by law, must contain clauses on the aspects mentioned below, in so far as the nature and extent of the services so require:

Object, term and terms of expiration;

Regulatory and conventional clauses;

Facilities, types and areas of services provided and frequencies granted;

Rights and protection of the user;

Rate and interconnection regulation;

Modernization requirements, expansion and development of the Network;

Obligations regarding rural services;

Requirements for the presentation of accounting, operational, audit and inspection reports;

Fees and rights;

Obligations in cases of emergency;

Sanctions;

Billing system;

Fiances and other warranties;

Accounting and structural separation of operations;

Obligations regarding international direct routes; and

Other than the Telecom Superintendency considers necessary, within the framework of the law. Article 8. TRANSFER TO THE NEW HOLDER. At the expiration of the expiration period or declaratory

of the concession, a public tender shall be made in order to grant a concession, by a new concession contract and transfer to the new holder of all installations, equipment, works and rights of the owner. The latter has an obligation to cooperate throughout the tender and transfer process, and its creditors cannot be allowed to oppose it. In the case of a term of maturity, the holder may participate in the invitation to tender for the granting of a new Concession. The provisions set out in this article apply only to the Basic Service Providers of Telecommunications, including Local, Mobile and Long Distance.

The Contract of Concession of the Services shall authorize the Superintendence of Telecommunications to carry out, in both cases, the indicated invitation to tender. The amount of the payment to be received by the owner of the goods affected by the concession shall be the book value or the value of the tender, whichever is lower; in both cases, the costs incurred in the tendering process, fines and/or other payments pending.

Any major difference that must not be paid to the incumbent shall be deposited in an account of the National Regional Development Fund for the purposes set forth in Art. 28º of this Law.

CHAPTER II

LICENSES, RECORDS, AND DEADLINES Article 9. LICENTE. The Superintendency of Telecommunications will grant licenses for telecommunications activities that make use of electromagnetic frequencies. The license for the use of electromagnetic frequencies does not grant any right of ownership and is limited to the right of use for a limited period. The Public Network Licenses will be granted through the public tender procedure, provided that the technical and legal requirements are met and one of the following conditions:

When the plans drawn up by the National Secretariat for Transport, Communication and Civil Aeronautics, approved by the Ministries of Finance and Economic Development; or

When there is a request from interested parties, meeting the technical and economic requirements established in regulation.

The licenses required for Private Networks will be granted to party request, prior to the technical-legal report of the Superintendency of Telecommunications.

Before the administrative resolution of granting of any License is given, the specific regulations must be in force of the service related to it.

Article 10. ADVERTISEMENT AND OPPOSITION. The advertising and opposition provisions established for concessions in Art. 6º of this law are also applicable to the licenses for Public Networks. In the case of licenses for Private Networks, an extract of the same shall be published in a national circulation newspaper for three consecutive days. If no objection is raised within ten days of the last publication, the licence shall be granted in accordance with the procedure laid down in the Regulation.

Article 11. RIGHTS FOR USE OF FREQUENCIES. The licence holders shall be subject to the payment of allowances for the allocation and use of the spectrum of electromagnetic frequencies, irrespective of the fees set out in Article 22o of this Regulation. law. The amount obtained will be deposited in the bank account of the National Regional Development Fund for the purposes set forth in Art. 28o of this law. The form of payment for these rights will be established by regulation.

Article 12. REGISTER. The operation or use of Private Networks that extend outside the property owner's property, as well as the provision of Value Added Services, require the corresponding registration. The regulation will determine the registration procedure.

Article 13. concessions will have the maximum period of forty (40) years, established by Article 134 of the Constitution of the State. The licences will have a maximum period of twenty (20) years and the records will be updated every five (5) years.

The deadline for each of the services will be set by regulation, prior to the public tender of the award of the respective concessions and licenses.

CHAPTER III EXPIRATION, RECALL, AND CANCELLATION

Article 14. CAUSALES. Constituents of declarations of expiration of concessions or revocation of licenses, the following:

When the holder transfers, cedes, leases or performs any act of having a concession or license, without Prior authorization of the Telecom Superintendence;

When self-reporting of bankruptcy is issued against the holder of the concession or license and the same is executed according to law;

When the holder does not start, perform or complete the works or installations, neither make the required investments or meet the objectives of fixed expansion, within the time limits set by a percentage which, according to the concession contract, is considered to be the cause of the declaration of expiration;

When the holder, provides a different service or modifies the object for the which was granted the concession or license, without prior approval of the Superintendency of Telecommunications,

When the holder after having received a notification from the Superintendence of Telecommunications on the reiterated non-compliance with the contractual or legal provisions, does not correct or remedy them within the time limits point out the contract; and,

Any other causal established in the respective concession contracts and in the administrative acts of licensing.

ARTICLE 15. DECLARATION. For the causes mentioned in the preceding article, the Superintendency of Telecommunications shall declare the expiration of the concession and/or the revocation of the license, by duly substantiated administrative decision.

This resolution will not be effective as long as the administrative resources of revoking are pending before the Superintendent of Telecommunications, hierarchical resources before the General Superintendent of the System of Sectoral Regulation (SIRESE) and the Court of Justice of the European Court of Justice Justice, in accordance with the provisions of Articles 22o and 23o of Law No 1600 of 28 October 1994.

In order to guarantee the continuity of the service, the Superintendency of Telecommunications will have the intervention as long as the tender, adjudication and possession of a new holder of the concession license, according to procedure set in regulation.

Licenses directly related to expired concessions will be automatically reversed.

Article 16. CANCELLATION. The Records will be cancelled when it is established that their owners do not comply with the requirements of this law and their regulations or service has been disused.

CHAPTER IV

PREVENTIVE INTERVENTION Article 17. PREVENTIVE INTERVENTION. In case the continuity of the provision of Telecommunications Services to the Public is put at risk, the Superintendency of Telecommunications, within the framework of its competence, will appoint an financial controller for the period of 90 days, in accordance with the procedure laid down in regulation and the respective concession contracts, by duly substantiated Administrative Resolution and prior notification to the concessionaire. The deadline may be renewed for a similar period, after approval by the General Superintendent.

Before the conclusion of this deadline, the Telecommunications Superintendence, based on the report presented by the designated financial controller for This effect shall determine the declaration of revocation by the grounds established in Article 14 of this law or, where applicable, the measures that the concessionaire shall take to avoid such a declaration.

TITLE IV

PIPELINE, RATES, AND RATES CHAPTER I

INTERCONNECTION Article 18. ENFORCEMENT. Public Networks that are functionally compatible must be interlinked, respecting the following principles:

Approve in a timely manner all requests for interconnection;

Provide interconnection of the same type, quality and functionality to the Operators who request it, according to the technical requirements set out by regulation; and

Provide timely information regarding plans technical changes that modify the Network and could affect interconnections in the future.

The interconnection may not be interrupted, unless authorised by the Telecommunications Superintendence. Article 19. INTERCONNECTION CHARGES. Interconnection charges will be based on costs that

demands the efficient provision of such interconnection and will be established according to regulation. If these charges include an additional amount in favor of one of the Networks, the additional amount can only be authorized by the Superintendency of Telecommunications, following the rules established in regulation. This additional amount will apply to all similar interconnections in the same service area.

Article 20. INTERCONNECTION AGREEMENTS. The interconnection agreements shall be negotiated and defined between the parties, subject to this law and their regulations. The document resulting from the negotiations will require the approval of the Telecommunications Superintendence, according to a regulation.

If the interested parties cannot reach an agreement, any of them may request that the Telecom Superintendency sets the terms and conditions to be governed by the interconnection agreement, the same as that will be mandatory.

CHAPTER II RATES AND FEES

Article 21. suppliers of the Services identified by the Superintendency of Telecommunications as non-Competitive, will freely establish the prices and rates to the users, as long as they do not exceed the Tope of Prices set for a particular service basket. The methodology for fixing the Price Tope will be based on the cost of providing the service and will include periodic adjustments for inflation and productivity improvements in the telecommunications industry. These adjustments will be applied and reviewed in accordance with the provisions of regulation and the corresponding concession contracts.

The prices and rates of competitive services will not be subject to regulation, except for the cases provided for in the Title V of Law No. 1600 of 28 October 1994.

Article 22. REGULATORY FEESThe regulatory activities of the Telecommunications Superintendency, as well as the aliquot part corresponding to the General Superintendence of the Sectoral Regulation System, will be covered by regulatory fees. The amounts and forms of payment of these fees will be established by regulation, depending on the following maximum ceilings:

For license holders and/or registrations, other than Service Providers or do not provide Value Services Aggregate: up to one percent (1%) annually of the estimated market value of used equipment that is not owned by a Dealer;

For concession holders, licenses and/or records, that are Service Providers or provide Value Added Services: up to 1% (1%) of your gross operating income of the year previous; or

For Broadcasting Services or Signals Broadcast: up to half percent (0.5%) of the gross operating income of the holders, deducting the fees paid to the advertising agencies for such revenue and indirect taxes.

TITLE V USE OF PUBLIC GOODS AND EASEMENTS

Article 23. RIGHT OF USE OF GOODS OF DOMAIN ORIGINATING IN THE STATE. The holder of a concession has the right of use, free of charge, of the area, the subsoil and the airspace of domain originating in the State, intended exclusively for the delivery of the service object of the concession.

Article 24. EASEMENTS. At the request of the holder of a concession, the Superintendent of Telecommunications may impose easements for the laying of Public Networks, as well as for the construction of works and other facilities in assets of State patrimonial domain, of any public entity, including the autonomous ones, or in private property. The procedures will be established in the regulation.

When the easement has to be imposed on private property, the amount of compensation and/or compensatory amount will be established in direct negotiation between the holder of the concession and the owner of the good. If they cannot reach an agreement within the time limit set in the regulation, this amount will be determined by the Superintendent of Telecommunications. The simple step of Public Networks does not entitle the compensatory payment.

TITLE VI VIOLATIONS AND SANCTIONS

Article 25. INFRINGEMENTS. Constitute infringements of the transgressions to the provisions of Law No 1600 of 28 October 1994, to this Law, to its Regulations and to the contracts of concession and applicable rules that do not constitute grounds expiration, recall, or cancellation.

Article 26. SANTIONS. Without prejudice to the sanctions established by the Penal Code, the Superintendent of Telecommunications will apply to the offenders, the sanctions of warning, kidnapping or embargo of equipment and material, fines and disablement temporary to exercise the activities of its rotation for a maximum period of one year.

The graduation of the penalties will be established in the regulation and the amounts and form of payment in the respective concession contracts. The amount from the payment of these fines will be deposited in the bank account of the National Regional Development Fund for the purposes set out in Art. 28o of this law.

TITLE VII TELECOMMUNICATIONS IN THE RURAL AREA

Article 27. OBLIGATIONS FOR THE RURAL AREA. The concession holders of Basic Telecommunications Services have an obligation to operate, maintain and expand the Network of Rural Services, in accordance with the provisions of the concession contracts.

Article 28. RURAL PROJECTS. The amount for the allocation and use of frequencies, fines, the amounts of the tenders for the granting of new concessions and the surplus resulting from the transfer to new holders, will be deposited in a bank account of the National Regional Development Fund, for the co-financing of Basic Telecommunications Services projects in the rural area at the request of any interested party, who meet the required technical requirements and not demonstrate appropriate levels of profitability. The Executive Branch will regulate the way these resources will be available, within the framework of the comprehensive development policies of this sector.

The National Regional Development Fund will also be able to channel funding resources. external for rural telecom projects.

TITLE VIII OF CURRENT OPERATORS

Article 29. ADEQUACY. The current Operators and Service Providers, whose concessions, licenses, authorizations and registrations are in force and have been granted in accordance with the law, will adapt them to the provisions of this legal standard within six months of its validity.

Private Network Operators, including IBS, IDS and other services, which currently offer services to third parties and whose concessions or licenses are in place and have been granted in accordance with the law and are in accordance with this legal standard, may continue to offer such services until the expiration of their respective concessions, authorizations and licenses. In this case, the gross accounting income from such services of all these operators shall not exceed four (4%) per cent of the gross accounting income of the National and International Long Distance of the National Enterprise Telecommunications (ENTEL)

The Operators of Broadcasting Services or Broadcast of Signals and Distribution of Signals, whose licenses are in force and have been granted according to law, will conclude concession contracts for the time limits laid down in this legal standard. Article 30. THE STATE ' S OWNERSHIP. According to the provisions of Article 136 of the Constitution of the State, D.S. 09740 of 2 June 1971 and D.S. 17730 of 20 October 1980, the State is currently exercising the rights of exploitation of all public telecommunications services at national level in direct, exclusive and unlimited time, through the National Telecommunications Company (ENTEL), with the exception of concessions which, by delegation, were granted to individual or collective persons under law.

Article 31. CONCESSIONS TO ENTEL S.A.M. Under Articles 1 and 2 of Law No. 1544 of 21 March 1994, in time for the establishment of the joint-economy company, the State shall provide the company with the rights and privileges of the exclusive National Telecommunications Company (ENTEL), for the operation of the services listed below: Long National and International Distance, Satellite, Cell Mobile, (Band? B?) Distribution of Signals by means of cable, Transmission of Data, telex, telegraphic, rural, carrier, search person, Personal Communication, Telephone public, circuit rental and Local Telecommunications. In order to adapt the rights mentioned to this law and its regulations, the Superintendent of Telecommunications and the National Telecommunications Company (S.A.M.), will sign contracts for granting the maximum period authorized by the present law.

Article 32. EXCLUSIVITY PRIVILEGE LIMITATIONAs an effect of the capitalization of the National Telecommunications Company S.A.M. (ENTEL S.A.M.), in accordance with the provisions of Article 4 of Law No. 1544 of 21 March 1994, the privilege of exclusivity referred to in Art. 31o of this law shall be limited to the Long Distance Service National and International by a six-year period, computable from the capitalization of the National Telecommunications Company S.A.M. (ENTEL S.A.M.)

For the purposes of Law No. 1544 of March 21, 1994, the conversion of the National Telecommunications Company subject to capitalization will be considered as a reorganization of the company and will not alter its rights and obligations.

Article 33. COMPLIANCE WITH TELEPHONE COOPERATIVES. The telephone cooperatives currently provided by the Local Telecommunications Service will adjust their existing and existing rights under the law, by signing concession contracts with the Superintendent of Telecommunications, for the maximum period authorized by this law.

Article 34. EXCLUSIVE PRIVILEGE TO TELEPHONE COOPERATIVES.- As an effect of the capitalization of the National Telecommunications Company S.A.M. (ENEL S.A.M.) and the subscription of the concession contracts referred to in Art. 33o of this law, the telephone cooperatives will have an exclusive privilege for the Local Telecommunications Service, in their areas of concession a period similar to that established in Art. 32o of this law, which is computed from the capitalization of the National Telecommunications Company S.A.M. (ENTEL S.A.M.)

Article 35. EXPANSION AND QUALITY GOALS. The goals of expansion and quality of the services provided by the concessionaires will be defined in the regulatory clauses of the concession contract, based on demand studies that take into account the reality The country's socioeconomic status and quality will be developed by independent specialized companies selected by the concessionaires of a payroll established by the Superintendency of Telecommunications and hired by the latter. These goals will be adjusted annually and verified every six months.

Article 36. EXTINCTION OF THE PRIVILEGE OF EXCLUSIVITY. The Superintendent of Telecommunications will declare the extinction of the privilege of exclusivity of those concessionaires that do not meet the goals of expansion or quality in a percentage established in the concession contract, according to the following:

Local Telecommunications Service operators with more than 50,000 lines installed and that fail to meet the annual expansion or quality goals will lose the privilege of 20% market exclusivity in all of its concession area, for each year of default.

Local Telecommunications Service operators that have fewer than 50,000 lines installed and that do not meet the annual expansion or quality goals, will lose the exclusivity privilege of 25% of the market in their entire concession area. each year of non-compliance.

As an effect of the extinction of the privilege of exclusivity granted to any of the telephone cooperatives, the concession of the Local Telecommunications Service granted to the National Company Telecommunications S.A.M. (ENEL S.A.M.), it shall have immediate legal effectiveness, allowing ENEL S.A.M., or the capitalized ENTRY, to provide such services in that concession area. Likewise, any other operator may provide such services, subject to compliance with the requirements laid down in this law.

The resources to be brought against this termination will have a positive effect. TITLE IX

OTHER PROVISIONS Article 37. INVIOLABILITY OF COMMUNICATIONS. Telecommunications services are declared to be of public utility. Unless judicial provision in favor of competent authority, it is strictly prohibited to intercept, interfere, obstruct, alter, divert, use, publish or disclose the content of telecommunications.

Article 38.SERVICES OF CALLED REVERTED. The marketing, promotion, sale or use of Reversed Call Services is prohibited.

SERVICE item 39.CORTE. The failure to pay the services by a user connected to the Public Network will give the right to the Service Provider to proceed to the court of the same, according to

When a User does not comply with the payment for services provided by a Service Provider using the Public Network, the Operator of this Network, in charge of the collection, is obliged to make the service cut, when the Service Provider so request.

Article 40. CASES OF EMERGENCY AND NATIONAL SECURITY. In cases of international war, internal shock, natural disasters, public calamities and the cessation of public services, the operators of

telecommunications will be obliged to cooperate with the authorities in the issuance, transmission and reception of the emergency telecommunications required to them. Telecommunications services related to the protection of the life of human beings will have absolute preference, without exception.

Article 41. EXCLUSIVE. It is excluded from the application of this law, except for technical aspects related to the use of the electromagnetic spectrum, telecommunications linked to the security and national defense established by the Power Executive, as well as those of a social character related to education and health. These services are exempt from the payment of fees and fees for use of frequency, provided that they use electromagnetic frequencies established by the Ministry of Finance and Economic Development.

Article 42. RADIO AMATEUR ACTIVITY. Radiohobby is officially recognized as an intercom and research activity for the development of the Communications Technique. In its aims and purposes it is declared to be of national interest.

Radioamateurs develop their non-profit activities in the service of the community. The Executive Branch will dictate a Regulation laying down rules for its operation and control by the Superintendence.

TITLE X FINAL PROVISIONS

Article 43. LAW OF LAW. Articles 60 to 70, 73, 75 and 78 of the D.S. No. 09740 dated 2 June 1971 are raised to the law. The term? Directorate-General for Telecommunications? used in such articles will be replaced by the term? Telecommunications Superintendence? These articles will regulate the content of broadcasts of Broadcasting Services as long as a new law is enacted for such services.

Article 44.DEROGATORY AND ABROGATORY. All provisions contrary to the law are repealed. This law and particularly the D.S. No. 09740 dated June 2, 1971, except for the articles raised to the law.

Law No. 603 of 15 April 1984 is repealed and the Executive Branch shall regulate the dissolution and liquidation of the The National Telecommunications Company Worker's Fund (FOTRATEL), as well as its

Executive Branch will dictate the regulatory provisions for the application and enforcement of the matters contained in this law.

Article 46. VALIDITY. This law shall enter into force from the date of designation of the General Superintendent of the Sectoral Regulation System and the Superintendent of Telecommunications. In the meantime, the provisions of D.S. No. 09740 dated June 2, 1971 and other regulatory provisions will continue to apply.

Together with this law, they will enter into force for the Telecommunications sector, the rules contained in Title V of Law No. 1600 dated October 28, 1994, except for exceptions established in this law.

TITLE XI TRANSITIONAL PROVISIONS

Article I. FREQUENCY REORDERING. Executive shall proceed to the rearrangement of the electromagnetic spectrum in terms of distribution and allocation of frequencies, taking into account the recommendations of the Radio Communications Sector of the International Telecommunication Union (U.I.T.), (formerly the International Advisory Committee of Radio? C.C.I.R.?) prohibiting the allocation of adjacent channels in the VHF and UHF bands of Broadcasting Services.

Article II. MERGERS, ACQUISITIONS AND TRANSFERS. During the six-year period established in Art. 32o of this Act, the Basic Services Operators of Telecommunications may merge with each other, acquire or transfer shares to other Existing similar operators, prior to the Telecom Superintendence.

Article III. FREQUENCY ALLOCATION AND USE RIGHTS FOR BROADCAST OR BROADCAST SIGNALS. Current license holders for Broadcasting Services or Signals Broadcast will be exempt from payment of frequency usage rights.

Article IV. INITIAL INTERCONNECTION AGREEMENTS. The initial Interconnection agreements to be established between the Telecom Operators shall be governed by the general terms, conditions and charges to be determined by the Superintendence of Telecommunications.

Article V. INITIAL PRICE CAPS. The Initial Price Topes for all Non-Competitive Services Canasts will be set by the Telecom Superintendency.

Article VI. TRANSFER TO NEW HOLDER FOR DECLARATORY OF EXPIRATION DURING THE PERIOD OF EXCLUSIVITY. For the purposes set forth in Art. 8 of this Law, when it is a declaration of expiration of the grant of a cooperative of telephones, that it has been appropriate to this law and its regulations, and as long as the period of exclusivity established in Art. 34o of this law, the amount to be received by the owner ceasing for the goods affected by the concession shall be the value obtained from the tender, deducting all liabilities, the expenses incurred in the process of tender and ten (10%) percent of the amount of the tender.

This amount will be deposited in a National Regional Development Fund account for the effects established in Art. 28º of this law.

Remitase to the Executive Branch for constitutional purposes. Session Room of the National Congress.

La Paz, July 5, 1995. Fdo. Juan Carlos Durán Saucedo, Javier Campero Paz, Walter Zuleta Roncal, Freddy Tejerina Ribera, Yerko Kukoc del Carpio, Carlos Suarez Mendoza.

Therefore, he promulgated it so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, five days of the month of July of a thousand nine hundred and ninety-five

FDO. GONZALO SANCHEZ DE LOZADA, José G. Justiniano Sandoval, Alfonso Revollo Thenier, Jaime

Villalobos Sanjines.