On December 20, 2023, Legislative Decree No. 1599 (“DL 1599”) was published to promote technological innovation, the reduction of the infrastructure gap and access to telecommunications services.
The regulation empowers the Ministry of Transportation and Communications (“MTC”) to relax specific regulations and exemptions in order to promote the deployment of telecommunications infrastructure and services in areas lacking coverage. The purpose is to create a regulatory experimentation environment that allows companies to test new business models with flexible regulations and requirements (“regulatory sandbox”). This would reduce the time to market for new technological innovations for the provision of public telecommunications services.
The regulation also empowers PRONATEL to use public funds to finance connectivity projects, and to renegotiate contracts to upgrade Internet speed. In order to do so, the entity will have to carry out contractual modifications and sign addenda for the projects under its jurisdiction.
Finally, the power granted to the MTC to approve a special regime that allows the concessionaires of public telecommunication services to allocate a percentage of the contributions they make for the commercial exploitation fee of the service and/or contribution to PRONATEL for the expansion of infrastructure or technological improvement in rural areas or areas of preferential social interest.
For further information, please contact Maria del Rosario Quiroga (rquiroga@estudiorodrigo.com) and/or Andrea Morelli (amorelli@estudiorodrigo.com).
