2. TELECOMMUNICATIONS

A. Sub-Regional Sectoral Agreements

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1. Decisión 395: “Marco Regulatorio para la Utilización Comercial del Recurso Órbita-Espectro de los Países Miembros con el Establecimiento, Operación y Explotación de Sistemas Satelitales por parte de Empresas Andinas” (Decision 395: Regulatory Framework for Commercial Use of the Member Countries’ Orbit-spectrum Resource for the Establishment, Operation and Exploration of Satellite System by Andean Enterprises)

DATE: August 3, 1996

MEMBERS: Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela)

Summary of Provisions

Definitions: 
Article 1 covers: “Competent National Authorities”, “Community Authorization”, “ Authorized Enterprise”, “Resource Orbit-Spectrum”, “Resource Orbit-Spectrum of the Member Countries”, “Spatial Segment”, “Land Segment”, “Andean Satellite System”.

“Resource Orbit-Spectrum” means the natural resource constituted by the orbit of geostationary satellites or other obit of satellites, and the spectrum of radio electrical frequencies attributed or awarded by the International Telecommunications Union (ITU) to the services of radio communications by satellite.

“Andean Satellite System” means the spatial segment under the control or ownership of authorized enterprises in conformity with this Decision, which uses a specific share of the orbit-spectrum resource of the Member Countries.

Objective and General Principles:
Article 2: The objective of this Decision is to secure the general conditions for the commercial use of the orbit-spectrum resource of the Member Countries, with the establishment, operation and exploitation of Andean satellite systems by authorized enterprises.

Article 3: The general principles which apply to the present Decision are the following:

a) Equity: The Member Countries have equal rights over the orbit-spectrum resource of the Member Countries, as well as over the aspects related to the establishment, operation and exploitation of satellite systems.

b) Reciprocity: The Members will consider formulas which allow for reciprocity with third countries, with respect to the benefits that arise from the commercial use of the orbit-spectrum resource of the Member Countries in the establishment, operation and exploitation of satellite systems.

c) National Treatment: In relation to the commercial use of the Member Countries’ orbit-spectrum resources in the establishment, operation and exploitation of Andean satellite systems, the Member Countries will accord to the authorized enterprises treatment no less favorable than they accord, in like circumstances, to their national enterprises, in term of taxes, fees, obligations and other internal regulations.

d) Non-discrimination: The authorized enterprises will provide their satellite capacity to all authorized operators, from Member countries or from third countries, universally, on the basis on non-discrimination and commercial criteria.

Community authorization for the commercial use of the orbit-spectrum resource of Member Countries:
Article 4: The following rights are granted, given community authorization:

1. Use of the Member Countries’ orbit-spectrum resources assigned to an authorized enterprise;

2. Commercialization of the spatial segment of the respective Andean Satellite System in the whole sub-region.

Article 8: The authorized enterprise may momentarily operate and explore the spatial segment of other satellite systems as long as it uses the Member Countries’ orbit-spectrum resource. This shall be done within three (3) years following the granting of community authorization. This deadline may be extended by the Commission of the Cartagena Agreement in face of justified reasons provided by the Cartagena Agreement’s Board, given a request made by the authorized enterprise and a report by the CAATEL (Andean Committee of Telecommunications Authorities).

Commercialization of the spatial and land segments:
Article 10: The spatial segment may be commercialized without restrictions in all the Andean Sub-region, with no requirements other than obtain the correspondent community authorization. The operation and exploration of the spatial segment shall follow ITU provisions.

Article 11: The authorized enterprises will require a concession or authorization by the Member Country whose land segment will be the support for the establishment, operation and commercialization of telecommunications services, in conformity with its national legislation.

Fees:
Article 12: The authorized enterprises will set their fees according to the market, in conditions of free and fair competition.

Article 13: The authorized enterprises will award the Member countries a 30% reduction on applied commercial fees, which will be committed to social governmental programs. The amount of services rendered in this context will not exceed 7.5% of the total capacity of the satellite system using the granted orbit-spectrum resource.

Relationship with International Telecommunications Organizations:
Article 17: The competent national authorities of the Member Countries will designate one of them as the Representative Administration which, in name of the group of authorities and in coordination with the authorized enterprises, will act and proceed in conformance with the Radio Communications Regulations of the ITU, in order to obtain the inscription and registration of the assignment of frequencies and associated orbit characteristics and, consequently, the international recognition of the use of the assigned orbit-spectrum resource.

Infractions and Sanctions:
Article 20: The Board of the Cartagena Agreement will initiate an investigation when evidence is found that the authorized enterprise has committed an infraction. Within a maximum of 90 days after the investigation has begun, the Board will present a report and, when it is the case, a proposal to the Commission. If the Commission accepts the existence of serious infraction a community sanction suspending the authorization may be imposed.

Settlement of Disputes:
Article 23: The settlement of disputes or conflicts arising over the constitution or functioning of an authorized enterprise and its branches, will be subject to the provisions contained in the juridical framework of the Cartagena Agreement and, when it is the case, in the relevant national legislation.

2. Tratado sobre Telecomunicaciones entre las Republicas de Nicaragua, El Salvador, Guatemala y Honduras (Treaty on Telecommunications Between the Republics of Nicaragua, El Salvador, Guatemala and Honduras)

DATE: April 26, 1966

MEMBERS: El Salvador, Guatemala, Honduras and Nicaragua

Summary of Provisions

Objective:

• Build the Central American Artery of Telecommunications (expression found in Article 3 of the Treaty).

Article I: The Governments of El Salvador, Guatemala, Honduras and Nicaragua agree to establish modern telecommunications services which will connect the cities of Managua, San Salvador, Guatemala and Tegucigalpa. For such, high quality equipment is to be adopted, with sufficient capacity in terms of telephone channels (960 as a minimum).

Article V: A Regional Technical Commission for Telecommunications, composed of the Member Countries’ General Directors, Presidents or individuals who are responsible for the area of telecommunications, is created to carry out the execution and administration of this Treaty.

Fees:
Article VI: The fees for the provision of radiotelephone or radiotelegraph services from capital to capital, in both ways, will be equivalent.

Article VII: The fees for telephone communications from capital to capital, or for telegraphic messages from a capital to any place in other Members’ territory, will be incurred by the country of origin.

Balance:
During the first five days of each month the Parties will verify if there are any creditors or debtors among them, and they shall reach a balance within the following ten days.

Additional Protocol: 
To facilitate the application of the provisions contained in this Treaty, an Additional Protocol is elaborated.

Duration:
This Treaty shall remain into effect for a period of ten years, and may be extended in successive periods of equal length if none of the Parties shows an intention to terminate the agreement, which shall be done upon six months notice.

Depositary:
Article XIV: The Organization of Central American States will be the depositary of this Treaty.

Transitory Article:
This Treaty will be open to the Republic of Costa Rica, to join at any time.

Continue on to Bilateral Sectoral Agreements