Colombia. The Ministry of ICT of Colombia published a series of questions and answers in order to help better understand what are the main changes included in the Draft Law on Modernization of the ICT Sector presented by the Government to the Congress of the Republic.
This is the document:
Why is this bill necessary?
Because it will generate the conditions that will increase private investment in Colombia and thus bring Information and Communication Technologies (ICT) to the population of scarce resources, in addition to rural areas. The project also seeks to guarantee and increase resources for the generation of content and applications of public interest. Likewise, the revitalization of the ICT industry will be key to the reactivation of the national economy and to achieve a more competitive country.
How does it benefit the economy and the citizen?
It will make the country more attractive and increase investment, which will ultimately translate into benefits for all citizens, because with these resources it will be possible to connect the entire population and connect it well, making, for example, important efforts in the last mile. With a connected Colombia, it will be possible to improve the competitiveness and productivity of the regions, and generate more employment. This will have important impacts on the reactivation of the economy, on the reduction of inequality and will leave the country with a solid foundation for the Fourth Industrial Revolution.
Why is it a modernization project?
Because precisely the practices that are being established in this law are framed in the international state of the art and are at the forefront of institutional and regulatory issues to increase investment. Colombia has been in arrears for at least five or six years in making this reform, which will leave the country with solid foundations for the Fourth Industrial Revolution.
How will investment in the ICT sector be encouraged?
Generating legal certainty, which is what really matters to the industry to be able to bring resources to Colombia. It is important to emphasize that this legal certainty will be worked on while protecting the rights of citizens and maximizing the social welfare of the population.
Is it the same project filed by the previous government?
No. The current project aims to modernize Law 1341 of 2009, which is the framework standard for the ICT sector; while the initiative of the previous government was completely new, since it was based on a new law that did not make express derogations and did not unify functions.
Why is a Single Fund for the ICT sector created?
Because today the industry has different burdens, in two different funds, which generates legal uncertainty; in addition, there is a general migration to the Internet, and since there are two funds, the projects were structured disjointedly, reducing their impact. This Single Fund will result from the union of the Information and Communications Technologies Fund (FonTIC) and the Fund for the Development of Television and Content (FonTV), and its resources will be used to ensure that all Colombians have access to and use ICTs; the development of public television; the promotion of multiplatform content of public interest and technological appropriation with a social and productive approach.
How will investments in the sector be prioritized and focused?
Through specific guidelines in the law, which allocate the use of resources to close digital and social gaps, focusing on the low-income population and indigenous, Afro-Colombian, Raizales, Palenqueras and Rrom communities, in addition to people with physical limitations; with emphasis on rural areas and everything that is of national public interest.
Will this project end public television?
No, on the contrary, it will strengthen it. This bill guarantees television resources with annual increases and additional resources aimed at strengthening content.
Will resources for public television and radio be reduced?
They will not be reduced, they will be maintained with an annual increase and there will be additional resources for the creation of multiplatform content of public and social interest.
How are resources guaranteed?
With a formula that is established in the law: television resources, from now on, will be the maximum amount they have had so far between 2012 and 2017, with an annual increase. In addition, the project also establishes and obliges the ICT Ministry to allocate more resources for the development of content of national public interest.
What is institutional modernization?
In putting the country at the international forefront. Today there are two entities that regulate the sector and that generates differences and sometimes contradictions between themselves (the CRC and the ANTV). That is why they are going to be unified in a single entity, the 'single regulator', which will help generate greater certainty in the sector. It will also unify the imposition of sanctions that today is distributed in several entities, in this way, the ICT Ministry will be the only one with the power of surveillance and control.
How will the 'single regulator' be formed and how will it be financed?
The 'single regulator' will be made up of five commissioners, who will have fixed terms of four years, and will be financed – as has always been done – with a regulatory rate that is defined in the law, which makes it independent and levels the country at the international level.
How is the independence of the 'single regulator' guaranteed?
It is given a character of hierarchy; of technical, legal, patrimonial independence, and will only be subject to the judicial control of a judge of the Republic.
What functions will the 'single regulator' have?
Regulate all telecommunications markets, including television and radio services.
Will there be separation of roles between regulation and the implementation of public policies?
Yes, the roles in the 'single regulator' and the ICT Ministry are separated, which is healthy because you can't be judge and party at the same time. Likewise, this will give greater dynamics to the closing of the digital divide.
What will happen to the ANTV?
The National Television Authority - strictly speaking - will be liquidated. This will last one year, which is the time established by the Law.
With this change, will the licenses granted for television and radio be maintained?
Yes, acquired rights are respected, that is why we talk about legal certainty.
Which entity will be in charge of allocating the spectrum?
The ICT Ministry will be solely responsible for allocating the spectrum. Today two entities (MinTIC and ANTV) can do so, which also generates differences and negative impacts. Only MinTIC will do so from now on, because the spectrum is an instrument of public policy with which it is intended to massify connectivity throughout the country.
What will happen to the National Spectrum Agency (ANE)?
The administration, management, attribution, and surveillance and control of the radio spectrum will be maintained in the ANE. The entity will continue to be attached to the ICT Ministry and will not have changes in its functions. This taking into account that in Colombia the spectrum is an instrument of public policy and this is implemented by the ICT portfolio.
What other role will the ICT Ministry assume?
Surveillance and control, and all spectrum allocation.
Why extend the time of spectrum use permits?
It is proposed to increase spectrum use permits for up to 30 years, subject to proportional investment plans. This taking into account that today it is more difficult to recover the investment in telecommunications and 10 years -as it is currently established- is a very short time for that purpose, which makes Colombia an unattractive country for investment. If the time of the permits is increased under conditions that maximize social welfare, coverage and technological renewal will be guaranteed, keeping the country updated and at the forefront of ICT.
How will the payment of compensation for the use of spectrum become more efficient?
It will be made more efficient because it is unified (a single rate of consideration will be defined for operators) and, in addition, obligations to do will be allowed, which is what requires operators to deploy infrastructure. That is the mechanism that is contemplated to ensure that operators, when they see the country attractive, actually invest their money and comply with what will be established in the Law. The ICT Ministry will define the value of the periodic consideration in maximum six months after the promulgation of the Law and will be reviewed every four years.
Will this increase the collection of the Single Fund?
Rather than increasing, the important thing is that it will increase the efficiency in the collection and investment in terms of coverage and its impact on society.
What benefits will community media have with this project?
They are a great ally, because they reach places in the country that have been forgotten. Then, an alliance will materialize, providing conditions and incentives for the operators of the community television service to renew their networks and digitize them, and to become Internet providers in these areas (they will be exempt from their periodic consideration for three years).
