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New Bolivian telecom bill creates controversy among players

A new telecommunication bill that would replace the existing one in Bolivia has been approved by Chamber of Deputies’s planning, economic policy and finance committee, but the proposed legislation is already creating controversy among players. The bill still depends on other approvals.

“If the bill is approved that will have a negative impact in the Bolivia telecommunications development. It’s necessary to have enought spectrum so carriers could offer good quality services, and according to this bill, only 33% had been available to operators, the rest remained with the government (34%) and Indians (33%),” explained Informa analyst Marceli Passoni.

In her point of view, since a good network infrastructure demands high investments, it is not comfortable that 77% of spectrum are in the hands of those who have no capital to invest. “The approval of the new law could further shake investors confidence and the attractiveness of the country.”

On June 11, vice president of Bolivia Alvaro Garcia Linera said to the local press that the frequency distribution established does not take sides with any sector. The standard determines the frequency distribution is 33% for the private sector, 33%  for the state and the remaining 34% for social sector community and indigenous people. Currently, private operators can use up to 80% of the spectrum.

Another point that is diverging the sector is a proposal of a 2% tax on operators’ gross revenues to finance rural telecom programs (compared to a 1% maximum in other regional countries).

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ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, Americasrprescott@rcrwireless.com Roberta Prescott is responsible for Latin America reporting news and analysis, interviewing key stakeholders. Roberta has worked as an IT and telecommunication journalist since March 2005, when she started as a reporter with InformationWeek Brasil magazine and its website IT Web. In July 2006, Prescott was promoted to be the editor-in-chief, and, beyond the magazine and website, was in charge for all ICT products, such as IT events and CIO awards. In mid-2010, she was promoted to the position of executive editor, with responsibility for all the editorial products and content of IT Mídia. Prescott has worked as a journalist since 1998 and has three journalism prizes. In 2009, she won, along with InformationWeek Brasil team, the press prize 11th Prêmio Imprensa Embratel. In 2008, she won the 7th Unisys Journalism Prize and in 2006 was the editor-in-chief when InformationWeek Brasil won the 20th media award Prêmio Veículos de Comunicação. She graduated in Journalism by the Pontifícia Universidade Católica de Campinas, has done specialization in journalism at the Universidad de Navarra (Spain, 2003) and Master in Journalism at IICS – Universidad de Navarra (Brazil, 2010) and MBA – Executive Education at the Getulio Vargas Foundation.