Reform The Telecommunications Act

Original Language Title: REFÓRMASE LA LEY DE TELECOMUNICACIONES

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 1

DECREE N ° 372

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That Art. 101 of the Constitution states that the State shall promote economic and social development by increasing production, productivity

and the rational utilization of resources; and that, with equal The aim of the programme is to promote the various sectors of production and to defend the interests of

II.-That Art. 246 of the Constitution of the Republic, among other things, points out that the public interest has primacy over private interest, and given that the radio spectrum is a good of the State that can be granted by concession,

license or authorization, for the use and exploitation of any natural or legal person, it becomes then necessary its regulation in order to achieve the common good.

III.-than by Legislative Decree No. 808, On 12 September 1996, published in Official Journal No 189, Volume No 333, dated 9 October 1996, was published in the Official Journal of the European Communities. of the same year, the Law of Creation of the General Superintendence of

Electricity and Telecommunications, called SIGET, has been issued, institution empowered to regulate the exploitation of the radio spectrum and to apply the Law of Telecommunications, created by Legislative Decree No. 142, dated 6 of

November 1997, published in Official Journal No. 218, Volume N ° 337, dated November 21 of that same year.

IV. (a) legislative action in respect of the mandate given by the judgment in respect of the radio spectrum being a intangible, demanial and scarce, and therefore necessary and relevant its regulation

and ordination, to ensure its efficient use and equal opportunities to participate in its allocation, in accordance with the provisions of the Art. 9 of the Telecommunications Law, as established in the preamble

and in Art. 44 of the Constitution of the International Union of Telecommunications ITU.

V.-That it is therefore necessary for the SIGET to have the power to reorder or reorganize the radio spectrum that includes the actions of re-attribute, reclassify, reassign, reserve and release frequencies; ensure the

effective, efficient and timely management of it, for the benefit of the population.

VI.-Therefore, it is necessary to empower the SIGET to develop and implement

the National Digital Television Plan Terrestrial, including the selection of the standard to be adopted in the country, the respective Transition Plan of the Television Analog to Digital Television, and associated with the execution of the process related to the Digital Dividend.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 2

VII.-That it is necessary to ensure the rational, efficient, competitive, inclusive use, sustainable, sustainable and orderly radio spectrum; as well as satisfy

the needs of all sectors of the population of these services in a legal framework according to standards, technical and regulatory criteria International, it is pertinent to reform the Telecommunications Law.

BY TANTO,

in use of its Constitutional powers and at the initiative of the Deputy and Deputies: Lorena Guadalupe Peña Mendoza, Roger Alberto Blandino Nerio, Juan Manuel de Jesus Flores Cornejo, Rolando Mata Fuentes, Martir Arnoldo Marin Villanueva, and Victor Hugo Suazo Alvarez.

DECRETA the following:

REFORMS TO TELECOMMUNICATIONS LAW

Art. 1.-Reform the first indent and add a final paragraph in Art. 1 as follows:

" OBJECT

Art. 1. This Law is intended to regulate, regulate and monitor activities related to the Telecommunications and Information and Communication Technologies sector, which includes radio spectrum management; access to essential resources; the numbering plan, the service

public telephony; efficient management of the networks; the quality, coverage and continuity of telecommunications services and the protection of the rights of the

The SIGET is the entity in charge of managing, managing, and monitoring the spectrum radio-radio; and it is the competent authority to verify the regularity of the conditions of the enabling securities, as well as to apply the appropriate penalties or corrective measures. '

Art. 2.-Replace the literal (a) and add a literal (d) to Art. 2 as follows:

a) " Promote universal access, affordability and the apprehension of Information and Communication Technologies that allow full exercise rights to freedom of expression, information, and dissemination of thinking, to bridge the gap

digital and contribute to social inclusion;

d) Ensure the rational, efficient and equitable use of radio spectrum, as well as your

update, reordering, or reorganization for optimization, which allow the introduction of new services, improve the existing ones, and the harmonization with other countries, according to the Constitution of the Republic and the International Treaties signed,

adhered and ratified by the Republic of El Salvador, to regulate the activities of the telecommunications sector. "

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 3

Art. 3.-Add Art. 2-A as follows:

GUIDING PRINCIPLES OF TELECOMMUNICATIONS AND INFORMATION AND COMMUNICATION TECHNOLOGIES

Art. 2-A.-The guiding principles of Telecommunications and Information and Communication Technologies are as follows:

a) Equality: Operators and suppliers must provide users with the services of telecommunications, under the same conditions of quality, content and place where they are used;

b) Inclusion: the real access of people with special needs such as disability and older adults, to the telecommunications services, in

appropriate quality and price conditions, in order to contribute human development of vulnerable populations;

c) Equity: equal opportunities for access to scarce resources, such as radio spectrum and numbering, needed for telecommunications services dissemination, including the essential television and television broadcasting services for the community;

d) Privacy of the Information: obligation of operators and suppliers, to guarantee the right to privacy, freedom and secret of communications, as well

how to protect the confidentiality of information obtaining from its users, suppliers or competitors, on the occasion of the provision of services, in accordance with Art. 24 of the Constitution of the Republic of El Salvador;

e) Universality: referred to the provision of a Telecommunications services as a whole, reviewed regularly and in line with technological progress, with the

purpose of the inhabitants of all areas and regions of the country, without any discrimination, under appropriate conditions of quality and Information and Communication Technologies can be accessed by price;

f) Not discrimination: to provide, on the part of licensees, licensees and authorized holders, telecommunications services in a fair manner as to

quantity, quality and coverage, without unequal treatment on the basis of gender; economic capacity, nationality, religion, ethnic origin, age or any other category that goes against the Constitutional Principle of Equality before the Law;

g) Maximum benefit to the user: establishment of guarantees and rights to For the end users of the telecommunications services, in such a way that can access

timely services of quality, receive information, exercise their right to freedom of choice and fair, non-discriminatory treatment;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 4

h) Transparency: setting appropriate conditions for operators, suppliers and other interested parties may have a say in the process of forming the

sectoral policies, resolutions and regulations;

i) Advertising: any procedure must be public, except in cases that the Law

set otherwise or by reasoned resolution of competent authority;

j) Effective Competition: application of appropriate mechanisms to ensure that in free

all operators and providers of telecommunications on the market compete on an equal footing, in order to seek the greatest benefit of the inhabitants and the free exercise of the right to freedom of recruitment;

k) Technology Neutrality: freedom of network operators and telecommunications service providers, to choose and offer technologies to use, according to

technological development, in a climate of free competition, meeting international standards that meet the requirements of quality and user needs;

l) Convergence: evolution and coordinated development of networks towards a uniformity that allows common support services and applications;

m) Environmental Sustainability: harmonization of the use and exploitation of networks and the provision of telecommunications services, which facilitate a healthy and ecologically balanced and environmentally friendly environment nature. Operators and suppliers

must comply with applicable environmental legislation;

n) Optimisation of Resource Resources: allocation and utilization of resources

scarce telecommunications objective, timely, transparent, non-discriminatory and efficient, with the dual objective of ensuring effective competition, as well as the expansion and improvement of networks, quality and continuity of service;

o) Financial management of the Scarce Resources: the assessment of scarce resources for telecommunications is based on in the allocation and utilization, according to the

market behavior, free competition, financial sustainability, continuity of service and public interest; and,

p) Freedom of Expression: Right of everyone to the freedom of thought and expression. This right includes the freedom to seek, receive and disseminate information and ideas of any kind, without regard to borders, either orally, in writing or

in printed form or by any other procedure of their choice. The implementation of this principle will be encouraged in institutional decisions and actions. "

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 5

Art. 4.-Reform Art. 3 as follows:

APPLICATION SCOPE

Art. 3.-The provisions of this Law are applicable to any natural or legal person, regardless of

in respect of the latter, its nature, degree of autonomy or constitution, which develops activities, provides or receives services in the Telecommunications sector, such as broadcasting, telephony, data transmission, broadband services, radio and television broadcasting services

the community, as well as by subscription, the convergence, access to essential resources, the numbering plan and the radio spectrum as intangible, demanial and scarce. "

Art. 5.-Replace the Art. 6 abbreviations and definitions, remaining as follows:

" ABBREVIATIONS, DEFINITIONS AND ACRONYMS

Art. 6. The following abbreviations shall be used in this Law: the General Superintendence of Electricity and Telecommunications, "the SIGET"; the International Telecommunication Union, "the ITU";

and the Registry of Electricity and Telecommunications attached to the SIGET, "the Register".

For the purposes of this Law and its Regulations, all abbreviations, definitions and acronyms will be read as follows:

Frequency Band: which may be abbreviated "Band": the portion of the spectrum whose frequencies they are between a minimum and a maximum frequency.

Access Charge: minimum monthly charge that each user must pay to be connected to the network, not including the value of the additional telephony services.

Leased Circuits: means fixed telecommunications network installations between two or more more designated points, which are set aside for dedicated use or availability for a

particular client or for other users chosen by that client.

Co-Localization Physical/Co-Location: means the faculty of an operator services of

telephony, from requesting to another the lease of the physical spaces necessary for the materialization of the interconnection of the networks. To the faculty of an operator to request the lease, it corresponds to the obligation of the requested operator to grant it. The party requesting the co-location will have

the right to enjoy similar conditions to which the operator granting access has contracted with other operators.

National Frequency Attribution Box: that you can "CNAF": a document containing the attribution and award of the different radio spectrum bands for the different radio services, as well as the classifications of use, standards and conditions

for their usage and its exploitation.

Disaggregation: the division into leased items, of the various services that make up the pipeline service.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 6

Encryptation: is the system by which, with the help of techniques or programs computer, encrypting or encrypting certain information for the purpose of rendering it inaccessible or unintelligible

for someone not authorized to access it.

Network Elements: the various components of a business network telecommunications.

Radio Spectrum: wave set Radio stations that are spread without artificial guidance below 3,000 GHz and are divided into frequency bands, which can be attributed

to different radio services for use in different geographical areas and periods. The term "Spectrum" will be used by default to refer to the radio spectrum.

Exclusive Nature frequencies: are those which for technical reasons are granted in a unique way, in the same geographical area.

Non-Exclusive Nature Frequencies: are those that apply to optimize the use of available radio spectrum, when two or more frequencies for technical reasons, effectively and without harmful interference, can be reused in the same band and zone

geographic.

Radio Spectrum Fragmentation: is the division of a portion of the spectrum, both in bandwidth, and in time and geographic space, as long as it is technically feasible.

Spectrum defragmentation Radio Radio: is the integration of a portion of the spectrum, both in bandwidth, and in time and geographic space, provided it is technically and

legally feasible.

Interconnection: is the service that enables operators and users of different networks cursing

telecom traffic from one to another network so that all end users are in a position to communicate with each other, or for end users connected to an access services network, to be able to obtain services provided by an

intermediate services operator.

Releasing Frequencies: The ability of the SIGET to release portions of the

spectrum that were modified or reclassified, without reassigning existing stations, will be understood to follow due process.

Media Community and Other Non-Profit Operators: are those made up of stations for sound and television broadcasting, intended to serve a particular audience, managed by an association or non-profit foundation, of social interest,

providing them with the right to information and communication, such as exercise of freedom of expression, fostering citizen participation to contribute to the affordable, equitable, inclusive, sustainable development of the country's communities and social sectors.

Not Using Frequency: for effects of this Act shall also be understood as not using the frequency:

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 7

a) Non-provision to the end user or public of a telecommunications service agreement or according to the technical conditions of coverage set out in the

contract;

b) In broadcasting it consists in the electromagnetic signal not carrying varied information

of audio and/or video. Likewise, the verification of the transmitted electromagnetic signal shall only be of the technical characteristics and parameters; and,

c) The non-use of frequencies in telecommunications systems that are for official use or private regulated use.

The above, to the detriment of the efficient use of spectrum and depriving the end user of the right of access to information and communication, as well as limiting free competition.

Commercial Network Operator Telecommunications: which may be abbreviated as "OPERATOR": natural or legal person offering one or more

of Numbering: a fundamental technical plan developed and administered by the SIGET that allows by the assignment of a number the unique and unambiguous identification of the user or final device.

Presubation: system by which an access service operator grants its clients access to intermediate services without the use of the

multicarrier system

selection key.

Important Provider: means a Telecom Utilities Provider that

has the ability to materially affect, taking into consideration pricing and offering, the terms of participation in the relevant market for telecommunications services, as a result of: a) controlling essential facilities; or b) making use of their position in the

market.

Telecom Commercial Network: which can be abbreviated "RED": infrastructure or

installation used by an operator to provide commercial telecommunications services.

Telecommunications: is any natural or legal person who

purchases wholesale telecommunications services, directly from network operators or other intermediaries, to resell to end users.

Reassign Frequencies: the change of frequency of a radio station, maintaining the same service and Technical conditions of operation following due process.

Reordering or Reorganization of the Spectrum: is the ability of the SIGET to re-attribute, reclassify, reserve, reassign and release frequencies of the radio spectrum for technical reasons and following due process.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 8

Re-attributing Frequency: will be understood as the change in a given portion of the radio spectrum of the service attributed and record such change in the CNAF, following due

process.

Reclassifying Frequencies: will be understood as changing the classification of usage to a portion

of the radio spectrum and recording such change in the CNAF, following due process.

Booking frequencies: The forecast of a portion of the spectrum for futures

uses or radio services determined by technological advancement or for reasons of national security, and their respective annotation in the CNAF, following due process.

Radioelectric Service: any service that uses radio waves attributed to the CNAF.

Radiocommunication Service: radio service involving transmission, emission

or reception of radio waves for specific telecommunication purposes.

Broadcasting Service: service radio communication whose emissions are intended to be

received directly by the general public. These services cover noise, television, or other issues.

Broadcast Service: Communication that is made in a single sense to multiple points of

reception simultaneously.

Services Intermediates: services provided by an operator to interconnect two or more networks

access to each other, or to offer temporary duration services to end users of an access services network, through this.

Access Services: which can be abbreviated "ACCESS": services that grant the end user the capability to initiate or receive a communication using the commercial telecommunications network.

Radio Fan Service: radio communication service that has the object of individual instruction, intercommunication and technical studies made by fans, this is by duly authorized persons who are interested in the radio-technical, with character

exclusively personal and non-profit.

Public Telecommunications Service: means any telecommunications service

that the State requires under Law, which is offer the general public. These services may include, inter alia, telephony and data transmission typically related to information provided by the customer between two or more points, without any end-to-end changes

in the form or content of the client information, not including information services.

Information Services: means offering a capacity to generate, acquire, store,

transform, process, retrieve, use, or make available the information by means of telecommunications, including electronic advertising, not including the use of any of these capacities for the administration, control or operation of a telecommunications system or the administration of a telecommunications service.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 9

Multicarrier System: system by which an access service operator grants your

clients access to intermediate services in a non-discriminatory manner, through the markup of a predetermined number of digits.

Telecommunications: all transmission and reception of signals of any nature, typically electromagnetic, containing among other data, sounds and images; includes any type of information that you want to communicate remotely; including dissemination,

broadcasting, fixed or mobile telephony and fixed or mobile internet and which constitute a major social and economic factor, acquiring importance in globalization and the information and knowledge society.

Information and Communication Technologies (ICT): are the set of resources, tools, equipment, software, applications, networks and media, which allows

compilation, processing, storage, transmission of information such as: voice, data, text, video and images, which contribute to the improvement of quality, the country's economic growth towards the information and knowledge society.

International Mobile Telecommunications: "IMT": are the IMT international mobile telecommunications systems, which offer access to a wide range of telecommunication services and supported by the mobile and fixed networks that are increasingly used by

package technology. Its key features are: high degree of functionality at global level; wide range of services and applications; mutual compatibility and with fixed networks; interworking with other radio access systems; high quality services;

world-wide usable user equipment; applications, services and equipment that are easy to manage; roaming globally; increasing maximum data speeds to support advanced applications and services, and others, whose features can be updated by

compliance with the ITU rules in the matter.

Enabling Title: administrative act granting the SIGET for the grant, authorization or

license for the use and exploitation of the radio spectrum; as well as for the provision of public services

Use of Frequency: is understood as the term that identifies the use to which a certain portion of the radio spectrum corresponds; which will be used according to the following classification:

a) Use Regulated: The one that requires a concession. This covers: i) Commercial regulated use: those that provide public services for profit, including essential services of broadcasting to the community; (ii) Regulated use

community: those providing essential services (iii) Private regulated use: those that do not provide public telecommunications services;

b) Official use: is the one used by state institutions and requires a authorization; and,

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 10

c) Free Use: is that spectrum that is available to the general public, for operate radio stations that include among others, some research applications

scientific, low power devices and radio amateurs.

For this purpose the SIGET will issue the corresponding regulations of each band of this usage,

specifying its operating technical conditions, and cases which are technically necessary to issue the corresponding licences. All free-use frequencies will operate in a non-interference/non-interference regime.

End User of the Service: is any natural or legal person who purchases telecommunications services for their own use. "

Art. 6.-Reform the name of Chapter II and Art. 9; also add Arts 9-A,

9-B, and 9-C, as follows:

" CHAPTER II

OWNERSHIP AND MANAGEMENT OF RADIO SPECTRUM

SPECTRUM ENTITLEMENT

Art. 9.-Radio spectrum is a limited natural resource and is an intangible, state-owned, intangible asset. Their exploitation and use must be conducted in a rational, efficient, economic, sustainable and equitable way, seeking the common good and compliance with the Constitutional precepts.

The State may grant the right for the exploitation of portions of the radio spectrum to any natural or legal person, for a period of twenty years, and may be renewed, in no

case automatically; the conditions and procedures laid down by the SIGET shall be complied with. the forms provided in this Law.

RULES FOR ENROLLMENT SECONDARY MARKET OPERATIONS

Art. 9-A.-Dealers may transfer to any title or lease the right

the operating of the concessionary frequencies, subject to the following requirements:

1) concessionaire and the acquirer or tenant, be

authorized by the SIGET, with respect to the technical aspects;

2) That the acquirer maintains the solvency of the obligations arising from the concession;

3) continuity in the provision of public services; in relation to the conditions offered originally to consumers;

4) To be demonstrated by the dealer and the interested party, the financial feasibility for the efficient operation of the concession;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 11

5) Efficient use of spectrum relative to the use of all allocated bandwidth and the entire area of coverage granted, which will be determined by the respective

technical analysis prepared by SIGET;

6) That the data subject and the applicant are solvent with the state tax obligations

firm and

7) Compliance with the provisions of this Law

which regulate the

procedures, requirements and conditions suitable for the exploitation of the concession; and,

8) When the Superintendence considers necessary, it will request opinion from the Superintendence of Competition, for which it will have a maximum period of forty-five days. If the opinion determines that it does not generate concentration, it will proceed with the corresponding procedure

.

In the case of transfer or partial lease of the concession, it must be previously counted

with the authorization of the SIGET of the respective fragmentation if the case is.

In any total or partial transfer of the spectrum the acquirer will pay to SIGET the costs of administrative and registration procedures according to the tariff structure of costs in force in the

Register published by SIGET which will be indexed every year with the IPC.

The requirements for obtaining the authorization to transfer or lease will be subject to

the provisions laid down in the Act and its Rules of Procedure. SIGET will authorize the transfer and lease by observing compliance with the guiding principles of telecommunications.

Any sub-leasing of frequencies will be null.

RADIO SPECTRUM MANAGEMENT

Art. 9-B.-SIGET is the state entity responsible for the management of radio spectrum. This management encompasses the planning, management, monitoring and technical control of the use and exploitation of the

radio spectrum, in a rational, efficient, sustainable and equitable manner, making use of the procedures and resources that requires SIGET for that purpose, being of the type: economic, financial, legal, scientific and technical.

SPECTRUM MANAGEMENT TASKS

Art. 9-C. The SIGET as a spectrum manager shall perform the following activities for spectrum management among others:

a) Managing the exploitation of radio spectrum efficiently in the framework of the Law, by granting the necessary administrative acts or the enabling titles of operation;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 12

b) Update technical regulations to execute the monitoring and surveillance function of the radio spectrum, to ensure compliance with the technical, legal

and financial aspects of the concession;

c) Update the economic value of the radio spectrum for new concessions,

Market Comparatives;

d) Administer the National Chart of Attribution of "CNAF" frequencies, including their

timely update in accordance with the national needs and competent International Treaties of which the Republic of El Salvador is a signatory;

e) Administer the National Frequency Record "RNF" and keep it updated;

f) Administer the National Spectrum Monitoring System;

g) Coordinate with other countries the use and harmonization of radio spectrum to avoid interference harmful in a preventive or corrective manner;

h) Order and reorganize the spectrum to ensure its rational, efficient, economic and equitable use, in response to national needs and in line with technological advances; and,

i) Re-attribute, reclassify, reserve, reallocate and release spectrum frequencies For reasons of feasibility, opportunity and convenience, in an objective, timely manner,

transparent, and non-discriminatory, in accordance with the provisions of this Law, respecting the rights of third parties, fulfilling due process and based on technical criteria.

Yes in the exercise of the faculty (i) of this Article, the rights of exploitation of the radio spectrum of broadcasting licensees shall be affected, the SIGET shall

reassign new frequencies of exclusive nature in favour of the (a) the concessionaire concerned, which must respect the rights of the dealers, the service attributed, the bandwidth originally granted and the operating rights derived from it, while maintaining the same conditions under which they were granted. "

Art. 7.-Reform Art. 10 as follows:

CNAF UPDATE

Art. 10.-It is the assignment of the SIGET to elaborate and maintain the National Table of

Attribution of Frequency, CNAF, document that will contain at least the attribution and adjudication of the different bands of the radio spectrum for the different services, conditions and classifications of their use and exploitation, according to national needs, without determining the type of technology

to be used, under the principle of technological neutrality.

The CNAF must be in accordance with the ITU Radio Regulations (RR). Therefore the SIGET will update the CNAF at least every four years. "

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 13

Art. 8.-Replace Art. 12 as follows:

SPECTRUM CLASSIFICATION AND ENABLING TITLE

Art. 12.-Radio spectrum is classified in spectrum of free use, official use and use

regulated.

The free-use spectrum is the set of frequency bands that can be

used by the general public to operate radio stations that include transmitters under certain established conditions by the SIGET in the CNAF.

The spectrum of official use is the set of frequency bands intended for the exclusive use of state institutions, frequency bands to be reserved for future applications, as well as those that need to be protected under Treaties, Agreements or Conventions

International. The official frequencies shall be recorded as such in the CNAF and, with the exception of those assigned to the different State institutions, shall be recorded in the name of the SIGET.

The spectrum of regulated use is the set of frequency bands that have not been contemplated in this Law as free or official use, the use of which requires granting; this use may be of a nature: commercial regulated, Community regulated, and private regulated. The regulated use includes frequencies of exclusive and non-exclusive nature.

For the exploitation of the official use spectrum, the state institutions shall request the appropriate authorization.

Any person who You wish to exploit a part of the spectrum of regulated use, you must ask the SIGET for the respective concession.

For the exploitation of the spectrum of free use, no concession or authorization will be required. However, the SIGET shall, for technical or legal reasons, qualify the

free frequency bands

use by a licence granted by it for use. In the case of radio amateurs, they may use the free-use spectrum, after qualification by the SIGET and registration in the Register.

The frequency changes between the different uses can only be made according to the method specified in Chapter V of Title VI of this Law. "

Art. 9.-Defeat the first, second and third points and reform the eighth paragraph of Art. 13 as follows:

" If the amount collected when applying this method of calculation generates an income of more than three million four hundred and thirty thousand In the United States of America or its equivalent in colones per year, the SIGET must transfer the amount in excess of the amount before the General Fund of the Nation. This

limit will be adjusted annually in the form set out in the previous paragraph. "

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 14

Art. 10.-Reform Art. 15 as follows:

" EXPLOITATION RIGHT

Art. 15.-The right of exploitation of the radio spectrum derived from the enabling titles

granted by the SIGET, can be transferable or leased; and also fragmentary, in time, in frequencies as in the geographical space, within the time limit for which it has been granted.

Applications for fragmentation and defragmentation of the radio spectrum shall be submitted in advance by the holder of the operating right, for the approval of the SIGET, who evaluate the application in accordance with the common procedure laid down in this Law. In the case of

the relevant amendments to the respective contract will be made and these will be entered in the Register; otherwise the application will be denied.

Radio spectrum transfers must be submitted prior to the holder of the right of exploitation, for the approval of the SIGET, who shall evaluate the application in accordance with the common procedure laid down in this Law. The new contract will be made in case of origin

maintaining the conditions with which the spectrum was initially granted and will be entered in the Register; otherwise the application will be denied.

The rights of third parties of acts concluded with the dealers, they are extinguished to

consequence of the termination of the concession, without prejudice to the responsibilities and affectations to which it takes place.

In any case, the holders of the right of exploitation of the spectrum, will be responsible for the violations arising from the use of the same.

The right of exploitation derived from authorizations for the exploitation of the official use spectrum may only be transferred between state institutions, prior to the evaluation and authorization process of the SIGET. "

Art. 11.-Add an Art. 15 -A, as follows:

" REQUEST TO THE COMPETITION SUPERINTENDENCE

Art. 15 -A.-The SIGET may request to the Superintendency of Competition that prior study of

feasibility according to its legal framework and powers, issue opinion concerning the participation of certain natural or legal persons in the processes for the granting of concessions for the exploitation of radio spectrum, the transfer of the right of exploitation of such concessions

on the secondary market, considering whether they would significantly limit the level of desirable competition on the market or if obstacles to the entry of new ones would be created competitors. In any event, the application to the Competition Superintendence shall be submitted for analysis, and the application shall be delivered in a

period not exceeding forty-five days, with the exception of the request for radio spectrum of non-exclusive nature.

In case you do not have the Competition Superintendency response within the deadline,

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 15

this will be understood as favorable as the SIGET can continue with the procedure respective. "

Art. 12.-Replace the final paragraph of Art. 17 as follows:

" The lease of the frequency bands is extinguished by:

a) The expiration of the time of the concession;

b) Insolvency in the payment of its obligations arising from the concession; and,

c) Failure to comply with the obligations set out in this Law and in the title

enabling. "

Art. 13.-Replace the literal (f) of Art. 33 as follows:

"f) Operate networks or provide subscription television services without the respective license, permit or authorization issued by SIGET."

Art. 14.-Add the literals (p) and (q) to Art. 34 as follows:

" p) Use without the due grant or authorization issued by SIGET, the frequencies

radio on the spectrum of regulated or official use; and,

q) Transfer or lease the operating right of a grant without prior authorization

of the SIGET. "

Art. 15.-Reform Articles 36, 37 and 38 of Chapter II, Title Sanctions Regime

V, Infractions and Sanctions Regime as follows:

" CHAPTER II SANCTIONS REGIME

SANTIONS FOR LAS LESS SEVERE VIOLATIONS

Art. 36.-The less serious infractions will be sanctioned with a fine of eleven thousand one hundred percent

eleven thousand dollars of the United States of America or its equivalent in colones for each infraction, in addition to a fine of a thousand two hundred and fifty U.S. dollars or its equivalent in colones for each day the violation continues.

PENALTIES FOR SERIOUS VIOLATIONS

Art. 37.-Serious infractions will be sanctioned with a fine of one hundred and eleven thousand to two hundred and twenty-two thousand dollars of the United States of America or its equivalent in colones for each infringement, in addition to a fine of two thousand five hundred dollars United States of America or its equivalent in colons for each day the infringement continues.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 16

PENALTIES FOR VERY SERIOUS VIOLATIONS

Art. 38.-Without prejudice to the provisions of Art. 42 of this Law, very serious infractions will be sanctioned with a fine of four hundred and forty-four thousand to five hundred and fifty-five thousand

dollars of the United States of America or its equivalent in colones for each infringement, in addition to a fine of five thousand dollars from the United States of America or its equivalent in colons for each day the infringement continues. "

Art. 16.-Reform Art. 42 as follows:

" CAUSAL OF REVOCATION OF RADIO SPECTRUM CONCESSIONS

Art. 42.-The following are the causes of revocation of the radio spectrum concessions:

(a) The lack of payment or incomplete payment of the economic obligations associated with the concession after the end of the period for its payment, compliance to Art. 63 of the

present Law;

b) Non-utilization of frequencies for more than a certain number of consecutive days or not, for a specified number of consecutive weeks of compliance with the

stipulated in the concession contract, where it applies, in consideration of the type of radio communications service and the classification of use, as defined in Art. 6 of this Law, following due process;

c) Failure to comply with the conditions set out in the respective enabling title; and,

d) Failure to comply with provisions or orders competent authority, when this is seriously prejudicial to public safety.

This article does not apply to the services mentioned in Title VIII "Special Regime for Free Reception Broadcast Services" for being incorporated in Art. 124 of this Law. "

Art. 17.-Add an Art. 54-A as follows:

RADIO SPECTRUM MONITORING AND CONTROL

Art. 54-A.-The SIGET shall apply the technical and legal mechanisms and procedures in place to carry out the verification of the technical quality of the radio emissions and shall have the appropriate actions

in order to ensure the operation of radio services and the efficient use of spectrum, including: detection and cessation of unauthorised emissions, identification and correction of harmful interference to radio services including broadcasting, verifying the

using frequencies according to the conditions defined in the relevant concession contract. '

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 17

Art. 18.-Replace Chapter III of Title VI as follows:

" CHAPTER III PROCEDURES FOR THE GRANTING OF ENABLING TITLES FOR THE

EXPLOITATION OF THE RADIO SPECTRUM

SECTION I

OPEN

Art. 76.-Procedures for the granting of radio spectrum concessions

may be initiated either on its own initiative or at the request of a particular.

a) OF THE OFFICIO PROCEDURE

provisions and conditions of the CNAF and the Registry, identify a portion of available spectrum and the SIGET establishes that such portion has the conditions

of market and economies of scale suitable for its granting and exploitation.

A public consultation will be held later for ten days, with the objective to determine if there are any interested parties to continue processing.

b) OF THE PROCEDURE A PARTICULAR REQUEST

The data subject must submit a request to the SIGET, in which the portion of the the required spectrum, the conditions and technical characteristics of the radio service that it intends to operate; such that the SIGET determines that there is no harmful interference with

the authorized stations.

This application shall proceed when the rules and conditions laid down in the CNAF indicate that

the requested spectrum portion is available for grant.

CAUSES OF IMPROVENANCE TO THE REQUEST OF A PARTICULAR

Art. 77.-They are causes of the application to obtain a concession:

a) When the portion of the spectrum or the radio service requested in concession does not comply with the provisions of the current regulations, in particular the content in the CNAF;

b) When the portion of the spectrum requested in concession, present electromagnetic incompatibility with other radio stations already allocated;

c) When the data subject requests frequencies that do not require grant under this Law; and,

d) When the applicant has outstanding the compliance with some sanction imposed

___________________________________________________________________ LEGISLATIVE INDEX

ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 18

pursuant to this Law and this Law is in a state of firmness.

REPORT TECHNICIAN

Art. 77-A.-The Superintendent in order to energize the telecommunications sector,

Information and Communication Technologies (ICT) and efficiently manage the radio spectrum, will ask the Management of Telecommunications to report on technical feasibility, opportunity in time, market conditions suitable for the granting and exploitation

of a portion of the radio spectrum according to the use. In the case of commercial regulated use, this report will define the frequency allocation mode. For the preparation of the report, multidisciplinary studies shall be carried out with the competent entities within a maximum of 60 days.

This report may additionally recommend a fragmentation of the portion of the requested spectrum, in both its bandwidth and geographical time and space, if this will be encouraged

competition and efficient use of spectrum.

MODALITIES FOR THE AWARD OF FREQUENCY CONCESSIONS

Art. 78.-The SIGET within the process for the award of concessions for the exploitation of the radio spectrum shall apply some of the following modalities:

a) Direct allocation: this modality shall apply for all that spectrum of use regulated that is non-exclusive in nature and that the corresponding technical study determines that it can operate without causing harmful interference to other stations and services

radio;

b) Public auction: this mode can be applied for any regulated use spectrum of

exclusive nature, a Community Regulated Exception; and,

c) Contest: This mode can be applied for all regulated use spectrum of

exclusive nature.

START OF THE SELECTION PROCESS

Art. 79.-Concluded and delivered the final report by the Management of Telecommunications to the Superintendent, this will resolve within a maximum period of ten days on the beginning of the procedure of

award of the concession of exploitation of the spectrum radio and the mode of the same.

TERMS OF REFERENCE

Art. 80.-As part of the procedure the Management of Telecommunications shall draw up the terms of reference of the concession, within a period of up to sixty days. You must include the following:

1) Nature of the invitation: consists of the description of the telecommunications service to be provided, including the public and essential, establishing the necessary requirements to become dealership, as well as requirements, skills,

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 19

economic, technical or professional qualities that lead to a better compliance with the public interest to which the demanial good should serve;

2) The frequency bands to be granted, the method of award, the quality of the radio service subject to the concession, transmission schedules and coverage zone;

3) Date, time, and place of submission of bids;

4) Notice publication for the withdrawal of the terms of reference;

5) Requirements to be met by stakeholders and supporting documents;

6) Obligations related to the efficient use of the frequencies to be concessional;

7) Special conditions including those related to universal access and social inclusion, in case it applies;

8) Plazos for reference and clarification of reference terms;

9) Requirements technical, financial and legal participation;

10) Methodology to be used for the assessment and qualification of tenders;

11) The terms, time and form of payment of the concession where applicable;

12) The guarantees to be surrendered; and,

13) The concession contract to be signed with the concessionaire.

APPROVING AND PUBLISHING THE TERMS OF REFERENCE

Art. 81.-The Superintendent by resolution shall approve within a maximum of thirty days, the terms of reference that will be made available on the website of SIGET and the

publication of the notice of call in at least two national newspapers, an international financial one, and on the SIGET website inviting you to download the terms of reference.

REMARKS

Art. 82.-Those interested who have fulfilled the requirements set out in the terms of

reference, may submit observations within the time limit set forth in these terms, which shall not exceed thirty days.

AMENDMENTS

Art. 83. On the basis of the comments received, the SIGET may issue resolution with addendum or amendment to the terms of reference within a maximum of 20 days.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 20

Adendas or amendments will form an integral part of the terms of reference.

RECEIPT AND OPENING OF OFFERS

Art. 84.-The receipt and opening of tenders shall be made on the date indicated in the terms of

reference, adendas or corresponding amendments. The development of the reception and opening of bids will be supervised by a firm of external auditors and will be attended by a representative of the Office of the Attorney General of the Republic.

EVALUATION OF BIDS

Art. 85.-The assessment shall be carried out within a maximum of 30 days, in order to determine the offers which comply with the requirements. The Telecom Management shall report to the Superintendent with the results of that evaluation, for the issuance of the corresponding resolution.

ADMINISTRATIVE AWARD

Art. 85-A.-The concessionaire will be selected among the submitted bids that met the requirements, following the selection procedure and the award mode set out in the terms of reference.

PAYMENT FOR THE CONCESSION

Art. 85-B.-In the event that an economic offer was required, the corresponding payments, will be

made within the time limits set out in the contract and will be by means of certified check or box, electronic payment or bank transfer. The effects of the award shall be conditional upon payment of the economic tender. When the successful tenderer does not make the payment within the stipulated time limit, the latter will lose the

respective guarantee filed, entering these funds into the assets of the SIGET and declaring the process to be deserted.

Realized the payment, the concession will be in effect on the day of the signing of the concession contract; which must be entered in the Register.

The SIGET will retain fifty percent of the final amount resulting from the auction, which will enter its patrimony, transferring the rest to the Special Fund of Resources from the Privatization of the National Administration of Telecommunications.

CONCESSION CONTRACT

Art. 85-C.-The Superintendent will sign with the successful tenderer the respective concession contract, which must specify the conditions and obligations that the concessionaire must comply with in accordance with this Law, its Regulations and the terms of reference, adendas and amendments, which also

will be part of the concession contract.

The concession contract must contain the following obligations:

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 21

a) Name and general of the parties;

b) Period of validity of the right of exploitation;

c) Full description of the service to be provided in accordance with the provisions of the CNAF;

d) The technical conditions granted: central frequency, bandwidth, area of geographic coverage and others that the SIGET considers Include;

e) The terms and conditions for the refresh, if applicable;

f) Criteria for fixing and adjusting tariffs, if applicable;

g) The minimum expansion plan and quality parameters of the service, if applicable;

h) The rights and obligations of the parties;

i) The penalties for the non-compliance with the concession contract;

j) The amounts of the rights to be paid for the concession and its form of payment, if applicable;

k) The guarantee of true compliance and the criteria and procedures for its adjustment and renewal, if applies;

l) The limitations and conditions for the grant transfer, if applicable;

m) termination of the contract, its causes and consequences;

n) Obligations related to the efficient use of the frequencies to be licensed;

or) Special conditions, including those related to universal access and social inclusion, if applicable;

p) Conditions and obligations to ensure continuity of services and causes of force majeure and fortuitous cases; and,

q) Any other that the SIGET has previously established in the terms of reference, if applicable.

SECTION II

GRANTING OF ENABLING TITLES FOR THE EXPLOITATION OF RADIO SPECTRUM OF NON-EXCLUSIVE NATURE

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 22

REQUEST

Art. 85-D.-The person concerned must submit a request to the SIGET, in which he must clearly specify the portion of the spectrum required, the conditions and technical characteristics of the radio service he intends to operate; SIGET determines that there is no interference

harmful to the authorized stations.

This request will proceed when the rules and conditions set in the CNAF indicate that

the requested spectrum portion is available for granting.

CAUSES OF IMPROVENANCE TO THE REQUEST FOR A EULAR

Art. 85-E.-They are causal of the application to obtain an enabling title:

a) When the portion of the spectrum or the radio service, requested does not comply with the provisions of the current regulations, in particular the content in the CNAF;

b) When the portion of the spectrum requested is electromagnetic incompatibility with other radio stations already assigned; and,

c) When the applicant has pending the enforcement of any sanction imposed

in accordance with this Law and is in a state of firmness.

ADMISSION OF THE REQUEST

Art. 85-F.-In the absence of any causal causal and the application meets all requirements, the request will be accepted.

TECHNICAL report

Art. 85-G.-The Superintendent will ask the Telecommunications Management to make a report on the technical feasibility of the request, which must be rendered within a maximum of twenty days.

This report may recommend additionally a fragmentation of the requested spectrum portion, both in its bandwidth and in the time and geographic space.

GRANTING AND AUTHORIZATION

Art. 85-H.-If the technical report is favorable to the Superintendent will issue resolution granting the requested, the concession will enter into force once the payment has been made and in case of the authorizations will come into force in the date of issue of the resolution.

GRANT PAYMENT

Art. 85-I.-The amount to be paid for the concession will be calculated based on the provisions of the Regulation

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 23

of this Act.

Payment shall be made by means of a certified or a cash check, electronic payment or bank transfer, by entering these funds into the assets of the SIGET.

This article does not apply to dealers who request to initiate the extension procedure established in Art. 129-A of this Decree.

Art. 85-J.-The procedure laid down in this Chapter will have legal effects from the time of the present reform, for new concessions of the radio spectrum.

PAYMENT FOR THE CONCESSION

Art. 85-K.-The effects of the award shall be conditional upon payment by the concession, which

shall be effected within five days.

The payment shall be by means of certified or cash cheque, electronic payment or transfer

When the successful tenderer does not make the payment within the stipulated time limit, he will lose the guarantee presented as a condition of participation in the auction, entering these funds into the assets of the SIGET. In turn, the SIGET will revoke the award without further processing.

The SIGET will retain fifty percent of the final amount resulting from the auction, which will enter its patrimony, transferring the rest to the Special Fund of the Resources. Coming from Privatization

of the National Telecommunications Administration. "

Art. 19.-Reform Chapter V, Title VI, as follows and repeal Articles 95 and

96 as follows:

" CHAPTER V

MODIFICATION OF SPECTRUM USAGE CLASSIFICATION

Art. 94.-The Telecommunications Management of the SIGET, may recommend to the Superintendent, the modification of the classification of the use of the different bands of the spectrum. To be able to make this modification, the SIGET will publish the intention of such modification and an incident will be opened for the only

effect of determining its origin, in which the procedures and deadlines will be indicated; according to the due process.

If the recommendation is approved, the SIGET will perform the corresponding update on the CNAF.

If, in the exercise of this power, the rights of exploitation of the spectrum are affected

radio broadcasting, the SIGET must reassign the new frequencies of exclusive nature in favour of the Dealers concerned, having to respect the rights of the dealers, the service attributed, the bandwidth originally granted and the operating rights derived from it, while maintaining the same conditions in which they were granted.

___________________________________________________________________ INDEX LEGISLATIVE

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 24

PUBLICATION

Art. 97.-Any resolution which provides for the modification of the classifications for the use of spectrum frequency bands shall be published in the form set out in this Law. "

Art. 20.-Add an Art. 97-A as follows:

" REGULARIZATION OF OFFICIAL FREQUENCIES

Art. 97-A.-The official frequencies will be regulated by the SIGET, and it will verify its use for better use of the radio spectrum. If it is determined that these frequencies are not

being used for a period of six months, the institution that has its ownership will be notified. If there is no valid justification for the non-use, those frequencies will be made available to SIGET, with their approval being revoked, following due process.

Such frequencies may be maintained within the official spectrum of use, may be authorized to another institution of the State. "

Art. 21. -Reform Art. 99 and add items 99-A, 99-B, 99-C, 99-D, 99-E, as follows:

RENEWAL PROCEDURE

Art. 99.-The procedure for the renewal of the enabling titles, will be initiated at the request of the

holder, within three to two years before the expiration.

TECHNICAL report

Art. 99-A.-The Superintendent will request the Management of Telecommunications to submit a technical report within sixty days, on compliance with all the conditions laid down in Art.

124 of this Law, in addition it must include an analysis of the technical feasibility, market conditions suitable for the renewal of the enabling title.

If the technical report is favourable, the Superintendent shall issue the relevant resolution within ten days.

If the report is approved, the Superintendent will instruct the Telecommunications Management to initiate the procedure of renewal of the granting of frequencies. Otherwise you will be notified of the renewal denial.

ENABLING TITLE REFRESH TERMS

Art. 99-B.-The renewal terms of the enabling title shall be made by the Telecom Management of the SIGET, and must include at least the following:

1. Technical, financial, and legal requirements for renewal of the enabling title;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 25

2. The payment terms and conditions, if applicable;

3. Other special conditions and obligations including those related to universal access and social inclusion in case it applies;

4. Renewal contract to be signed with the holder; and,

5. Plan of investments in the management of the goods and technological resources

involved in the delivery and continuity of the service including essential services.

APPROVAL OF THE TERMS OF RENEWAL

Art. 99-C.-If the Superintendent is brought in by resolution, it will approve the terms of renewal proposed by the Telecommunications Management.

EXECUTION OF RENEWAL PAYMENT

Art. 99-D.-The corresponding payments, when applied, shall be made within the time limits laid down in the renewal contract and shall be in the form of a cheque or a cheque, electronic payment or bank transfer. The effects of the renewal shall be conditional upon payment, in the case of non-payment, the application for renewal shall be left without effect. The voucher for that payment must be presented on the day of the signature of the

renewal contract.

ENABLING TITLE RENEWAL CONTRACT

Art. 99-E.-Upon receipt of the notice of the resolution, within ten days, the Superintendent and the holder shall sign the respective renewal contract of the enabling title which

shall specify the conditions and obligations which must be complied with in accordance with this Law and its Rules of Procedure. The renewal of the title shall take effect on the day of the signature of the contract and shall be updated in the Register. "

Art. 22. -Enter Art. 115 -A as follows:

" RULES FOR ENROLLMENT OF SECONDARY MARKET OPERATIONS

Art. 115 -A.-Dealers may transfer to any title or lease the

right of operating the concessionary frequencies prior to the following requirements:

1. That the contract made between the dealer and the acquirer or lessee, is

authorized by the SIGET, with respect to the technical aspects;

2. That the acquirer maintains the solvency of the obligations arising from the concession;

3. That continuity in service delivery is not affected; regarding the conditions originally offered to consumers;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 26

4. Efficient use of spectrum relative to the utilization of all allocated bandwidth and the entire coverage area granted, which will be determined by the respective

technical analysis developed by SIGET;

5. That the interested party and the applicant are solvent with the state tax obligations

firm and enforceable;

6. Compliance with the provisions of this Law, which regulate the

procedures, requirements and conditions for the exploitation of the concession; and,

7. If necessary, when the Superintendence considers necessary, it will request opinion from the Superintendence of Competition, for which it will have a maximum period of forty-five days. If the opinion determines that it does not generate concentration, the

corresponding procedure will proceed.

In any total or partial transfer of the spectrum, the acquirer will pay the costs of

administrative and registration according to the tariff structure of the costs in the Register published by SIGET which will be indexed each year with the CPI.

Any sub-lease of frequencies will be null. "

Art. 23.-Reform Art. 116 and incorporate an Art. 116-A as follows:

" ANNUAL RATE OF SPECTRUM MANAGEMENT OF BROADCAST STATIONS AND THEIR LINKS

Art. 116.-The enabling titles for radio spectrum use for radio and television broadcasting services shall cause fees the amount of which shall be paid annually to the SIGET to cover the costs related to the management tasks, spectrum management and surveillance

radio. Payments will be made in the month of October each year, the values to be paid are as follows:

TA=CUE* Fs *AB* Pac*n

Where:

TA= Annual Rate;

CUE= Cos to Un i ta r i o del espe c t r o, en co l one s ¢ 11. 9358, in dollars = USD$1.36408/MHz/hab/month, whose value must be indexed annually with the official CPI factor;

Fs= Service Factor, for AM equals 0.003, FM equals 0.00029, TV equals 0.000122;

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 27

AB= Bandwidth on MHz;

Pac= Population to cover; and,

n= months of the year, 12.

In no case, when applying the above formula, the values for the annual rate cannot be less than $250 in Modulated Amplitude (AM), $500 in Modulated Frequency, and $1,500 on Television.

ANNUAL RATE IN TERMS OF ADMINISTRATION, SUPERVISION AND THE RIGHT OF COMMERCIAL EXPLOITATION OF THE SERVICES OF BROADCAST AND BROADCAST RADIO

AND TERRESTRIAL AND SATELLITE TELEVISION BY SUBSCRIPTION

Art. 116-A.-The calculation of the charge of the Annual Rate is directly related to the number of

subscribers to which the licensee provides the services in a given system, according to the license granted, in such a way that achieve diversification of converged services, payments will be annual and remunerable in advance, during the months of January and February of each

year and determined by the following formula:

TA cable = Faith * #subscribers

Where:

TA cable= Annual rate for broadcast services or

terrestrial and satellite broadcast

subscription;

Faith = Economic factor per year/subscribers, being USD$ 1.80 per subscriber; and,

#suscriptores = The number of subscribers reported at 31 October of each year to the SIGET. Audio and television broadcast licensees

must submit an affidavit for the number of subscribers.

Subscribers of service packages reported by licensees will be included

within the subscriber portfolio, only if the subscription television service is provided in the package, in any of its modes.

The securities will be indexed annually according to the official CPI factor.

The previously defined formula will be reviewed by the SIGET, according to the methodology developed

in the Regulation of this same Law, and updated by means of an instructional, at least every 3 years, according to technological advances.

Any operator of subscription-based television broadcasting services that provides coverage services at the national level, must incorporate into its programming grid free and without any conditions, the channels that operate in the frequencies of the television broadcasting services of free reception with national coverage, whichever is the spectrum of regulated or official use.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 28

The subscription television broadcast services operator providing service coverage at national level, is released from the obligation set out in the previous paragraph, when in its relationship

any frequency operator of free reception broadcasting services sets a price for the inclusion of your channel in the programming grill. In the absence of an agreement on the price between the aforementioned parties, the subscription television broadcasting service operator,

will not be able to broadcast the respective channel on its grill.

The channels of the spectrum of use official and regulated national coverage will maintain its same

spectrum location on the programming grid; this provision applies to operators of television broadcasting services by land and satellite subscription.

In the case of television channels of regional and local free reception, their incorporation into the Programming grill will be by agreement between the parties and according to the operating area of each system.

The SIGET will ensure compliance with the provisions of this article. "

Art. 24.-Replace Art. 119 of the following form and add Art. 119-A:

" MONITORING AND MONITORING OF FREQUENCIES

Art. 119.-For the allocation of broadcasting channels or frequencies, the SIGET shall dictate the necessary rules and regulations, avoiding harmful interference to the broadcast stations

that are legally operating.

The SIGET will monitor, inspect and audit the operation of the broadcast stations

on a permanent basis, as well as require the dealers to provide the necessary information, in order to verify the proper exploitation of the frequency, the provision of the service attributed and the fulfilment of the other parameters and conditions set out in the contract and this Act.

VIOLATIONS AND PENALTIES FOR BROADCASTERS:

Art. 119-A.-The following are infractions of the broadcasters:

1) Do not register in the Register when there is a legal obligation to do so;

2) Do not provide information to the SIGET when there is a legal obligation to do so, or provide false information;

3) Causing harmful interference in the exploitation of radio spectrum; and,

4) Use radio spectrum without respecting the technical standards and conditions established in the CNAF.

The previously established violations will be sanctioned with a fine whose amount will be

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 29

among a thousand seven hundred dollars from the United States of America and thirty-three thousand United States Dollars, in addition to a fine of fifty-seven point fourteen Dollars of the

United States of America for each day the infringement continues.

The Regulation of this Law will determine the form of application of this Article. '

Art. 25.-Reform Art. 120 as follows:

SUBSCRIPTION BROADCAST SERVICE OPERATORS

Art. 120.-Natural or legal persons who request to provide broadcast services by

subscription, sound or television, must first obtain an enabling title of the SIGET and comply with the requirements set by the SIGET and the respective Regulation. The above independent when the medium used is either by radio waves or by wire networks. '

Art. 26.-Replace Art. 124 as follows:

" CAUSES OF REVOCATION OF THE ENABLING TITLES

Art. 124.-They are specific to the revocation of the qualifying titles:

a) Lack of payment or incomplete payment of the annual fee established in Art. 116 of this Law, twenty days after the end of the period, after hearing the concessionaire; without contravening the provisions of Art. 129 of this Law;

b) The "non-use of frequencies" assigned, for a period of six months, except fortuitous case or force majeure;

c) Failure to comply with the provisions of this Law contract of concession, in respect of the conditions and technical parameters granted and the stipulated in the current legislation;

d) Failure to perform the operation and delivery of the broadcast service by subscription by wire and wireless means, in all schedules, the areas of

covered coverage and in the set forth in this Act;

e) Not having the respective permissions, and SIGGET authorizations, for the licenses of the

subscription television distribution service; and,

f) Not submitting the annual declaration of number of subscribers and channels that transmit

or present it with false information.

Having completed the common process that sets this Act for which revocation is declared

and the enabling title is expired, the subscription television system must cease service delivery.

Also revoked the concession and expired the contract the transmitting stations involved

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 30

must cease their emissions and the corresponding frequencies will be subject to the rules applicable to the spectrum of regulated use. '

Art. 27.-Add Art. 125-A as follows:

" LINK FREQUENCY CONCESSIONS REGULARIZATION

Art. 125-A.-When the concessionaire presents a request for link frequencies for

transmitting the signals to the main or repeating transmitting stations in the approved zones, the SIGET will carry out the technical feasibility study. If the result of the study is favourable, the SIGET shall grant the corresponding concessions within the time limit laid down in the Law. "

Art. 28.-Replace Art. 126 by the following:

" Art. 126.-The SIGET shall grant concessions for the link frequencies used to transmit. The authorisation for these radio and television relay and relay frequencies shall not cause any additional payment.

The rights of third parties arising from acts concluded with the dealers who have requested the extension shall be subject to the provisions of the second paragraph of Art. 15 of this Law. "

Art. 29.-Reform the third paragraph of Art. 127 as follows:

" Except fortuitous case or force majeure duly proven, the refusal of a dealer

to transmit the national chain, will make him a creditor to an equivalent fine at the value of three times the annual fee for the first and second time; and six times for the third time or more. "

Art. 30.-Reform Art. 129 as follows:

PAYMENT WAIVERS

Art. 129.-State and community broadcasting stations, including religious, ethnic, and other non-profit, shall be exempt from the payment of the annual fee for the

management of the spectrum of the broadcasting and its links referred to in Art. 116 of this Law. "

TRANSIENT PROVISIONS

TRANSIENT DISPOSITION FOR RENEWAL OF

DIFFERENT SERVICES TO THE BROADCAST AND TELEVISION

Art. 31.-To the concessions in force and their respective processes of renewal of concessions of

different services to sound and television broadcasting shall be applied to the provisions of CHAPTER III, PROCEDURE FOR THE GRANTING CONCESSIONS FOR THE EXPLOITATION OF THE SPECTRUM, which is repealed by this Decree, and its maturities are prior to thirty-one December of the year two thousand twenty-one, and which request the advance renewal of the right of exploitation.

___________________________________________________________________ INDEX LEGISLATIVE

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 31

Therefore they will continue to be processed until their completion in accordance with the said Chapter.

EXTRAORDINARY SPECIAL CONTRIBUTION YEAR 2017 FOR CURRENT TELEVISION AND AUDIO BROADCAST DEALERSHIPS

Art. 32.-The current television and television broadcasters will pay a special special contribution for one time in July of the year two thousand seventeen, the value of the application of the formula contained in the Art. 116 of the Telecommunications Act, without any adjustment.

GRADUALITY IN THE PAYMENT OF THE ANNUAL FEE FOR THE MANAGEMENT OF THE SPECTRUM OF BROADCAST STATIONS AND THEIR LINKS

Art. 33.-The introduction of the Digital Terrestrial Television system in El Salvador entails a transition process that will produce an important economic impact for

open television broadcasting " dealers operating in the The UHF frequency band that will be decisive in the transition process.

The economic impact will include, among other aspects, the technological evolution of the production equipment, editing and transmission equipment, microwave equipment and main transmitters and antennas, repeaters and antennas, towers, peripheral distribution equipment and storage.

For the purposes that current dealers can make the necessary investments that the implementation of the Digital Terrestrial Television entails, the annual single rate contained in Art. 116 of the Law, will be applied in form gradual. The values to be gradually and temporarily paid for a station

with national coverage are:

a) In the year 2018 the amount of US$ 36,000;

b) In the year 2019 the amount of US$ 36,000;

c) In the year 2020 the amount $42,000; and,

d) From 2021 onwards, an annual growth rate of 3.55 per

will be applied in relation to the rate of the previous year.

The payments contained in literals (a), (b), (c) and (d) shall be annual and will be paid for the month of October

of each year, until the expiration of the time of the concession.

The previous It will only apply to the current broadcast dealers

free reception television operating in the UHF Band. Current VHF dealers will pay the fee set forth in Art. 116 of this Act as long as they do not migrate to the UHF band.

For the case of non-national coverage frequencies, the payment of the fee will be proportional to the CAP.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 32

EXTENSION OF THE BROADCAST AND RADIO BROADCAST CONCESSIONS

Art. 34.-The concessions of the radio and television broadcasting services, modulated frequency and modulated amplitude, of free reception that were granted prior to the issuance of the Judgment

of Inconstitutionality 65-2012/36-2014, dated July of two thousand fifteen, shall be extended for twenty years more, counted from the date of its expiration. The above will occur once SIGET verifies that the dealers have not incurred one of the following causes:

a) Absence of payment or incomplete payment of the special contribution established in Art. 116, twenty days after completed the deadline, after hearing the concessionaire;

b) Not using for any cause of the assigned frequency, for one year; and,

c) Not having the respective permits or authorizations for the transmission of the programs, when you apply.

The verification referred to in the first indent must be performed by SIGET, in accordance with Article 124 in advance of this reform.

The natural or legal persons who have the concession or concessions of the services before

shall submit their application within the period of 12 months before its expiration, and must update the respective legal and technical information in the Register. If the deadline does not present the request for an extension, it is understood that the concessionaire has no interest in continuing to exploit the

spectrum; consequently, the latter will be extinguished by the date of its expiration, in which case, the SIGET will be able to have the spectrum that was assigned to these concessions, applying the legal framework in force and following due process.

The SIGET through the Management of Telecommunications will yield ex ante a technical report on compliance with the conditions.

If the technical report is favorable, the Superintendent will issue the a corresponding resolution within ten days, in the technical terms and conditions duly updated in the Register.

If the resolution is negative, the corresponding legal remedies shall be issued to the concessionaire.

Once the notification of the resolution has been received, within ten days, the Superintendent and the concessionaire shall sign the respective contract of extension of the concession which shall specify the technical terms and conditions duly updated in the Register to continue to comply with

compliance with the above statement, this Law and its Regulations.

TRANSITORY FOR THE DIGITALIZATION OF THE TERRESTRIAL BROADCASTING SERVICE

TELEVISION

Art. 35.-Facultate to the Superintendence General of Electricity and Telecommunications to elaborate within a period not greater than one year from the entry into force of this Decree, the Plan

___________________________________________________________________ LEGISLATIVE INDEX

ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 33

National Terrestrial Digital Television; such plan will include the process of selecting the standard to be adopted in the country, the respective Transition Plan of the Analog Television to Digital Television,

and associated with it the implementation of the Digital Dividend, and the corresponding regulations, for which the SIGET May carry out technical consultations with International Organizations recognised by existing Treaties.

The SIGET will relocate the new frequencies to the television operators affected by the Digital Terrestrial Television; ensuring in the relocation referred to, the respect for the rights of the

affected dealers who are required to migrate to other frequencies, the bandwidth originally granted and the operating rights derived from it, with the legal certainty of maintaining their emissions in conditions equal to or similar to how they were developing them; and assuring the

affected dealers that they should To migrate to other frequencies, the enjoyment of preference in the same-width-frequency reallocation and registration in the National Frequency Attribution Table, with respect to those concessionaires whose frequencies will not suffer any alteration with

implementation of Digital Terrestrial Television.

Regulation

Art. 36.-Replace Art. 130 as follows:

" Art. 130.-The reform of the Regulation of this Law shall be issued within the maximum period

of nine months from the entry into force of this Decree. "

Art. 37.-Derogase Art. 131 of this Law.

Art. 38.-Add Art. 131-A as follows:

GENERAL CHOICE

Art. 131-A.-For the purposes of this Law, it should be understood that the reference to Superintendent

and Managers, implicitly encompasses the male and female gender, unless otherwise specified. "

Art. 39.-This Decree shall enter into force eight days after its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, five days of the month of May of the year two thousand sixteen.

LORENA GUADALUPE PEÑA MENDOZA, PRESIDENT.

GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

___________________________________________________________________ LEGISLATIVE INDEX

LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

____________________________________________________________________ 34

JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.

SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA,

FIRST SECRETARY. SECOND SECRETARY.

MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA,

THIRD SECRETARY. FOURTH SECRETARY.

JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL,

FIFTH SECRETARY. SIXTH SECRETARY.

ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ,

SEVENTH SECRETARY. EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, at the eighteenth day of May of the year two thousand sixteen.

PUBESCOSE,

Salvador Sánchez Cerén,

President of the Republic.

Tharsis Salomon López Guzmán,

Minister Economy.

D. O. N ° 91 Tomo N ° 411 Date: 18 May 2016.

FN/pch 20/06/2016

___________________________________________________________________ LEGISLATIVE INDEX