RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.30
20September 1995
ORGANIZATION(95-2726)
Original: Spanish Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THE DOMINICAN REPUBLIC
Response toQuestionnaire onBasic Telecommunications
Theattached communication iscirculated attherequest oftheDominican Republic toMembers
oftheNegotiating Group onBasic Telecommunications.S/NGBT/W/3/Add.30
Page2
REPLIES BYTHE DOMINICAN REPUBLIC TOTHE QUESTIONNAIRE
ONBASIC TELECOMMUNICATIONS OFTHE
WORLD TRADE ORGANIZATION
PART I
Definition andmarket structure
Definition
1. What areconsidered tobebasictelecommunications under yourregulatory regime? Howdoes
yourregulatory regime define thatwhich isnotconsidered basic telecommunications?
There isnodefinition ofbasic telecommunications inDominican legislation.
2. Does yourregulatory regime distinguish between networks (facilities) andservices indefining
basic telecommunications? Ifso,howisthisdistinction made?
Notapplicable, since there isnodefinition ofbasic telecommunications services.
3. Arethereanynetworks orservices which would beconsidered tobebasictelecommunications
within thescope oftheGATS definition which would notbesoconsidered byyournational definition?
Ifso,whatarethey?
Notapplicable, since there isnodefinition ofbasic telecommunications.
Market structure
4. Listanybasic telecommunications subsectors orcategories which arereserved tosupply by
monopoly orexclusive supplier(s).
Nolawsorregulations reserve thesupply oftelecommunication services totheState orany
monopoly suppliers. However, telegraph services arenotincluded intheconcession agreements that
theState hasconcluded withconcession-holders.
5. Doesyourregime designate oneoralimited number ofmonopoly/exclusive suppliers tosupply
anybasic telecommunications nationally, onageographical basis, orforparticular market segments?
Howisit(orthey)constituted(e.g.governmentministryoragency,whollygovernment-ownedcorporate
entity, company partly owned bytheGovernment, privately owned)?
Theonlymonopoly supplier istheStateinrespect ofthetelegraph service. ThisStateservice
isoffered nationally, through theGeneral Directorate ofTelecommunications (DGT). Theother
telecommunications services areoffered byprivate companies.
6. Isforeign equity participation orownership ofmonopoly orexclusive suppliers permitted?
Ifso,whatisthemaximum percentage share allowed andwhatisthecurrent levelofidentifiable foreign
participation?
There arenomonopoly suppliers, noranyrestrictions onforeign participation intheequity
ofcompanies supplying telecommunications services.S/NGBT/W/3/Add.30
Page3
7. Ifyourregime isgenerally characterized asnotpermitting competition, please indicate:
(a) Ifcertain activities orcategories ofwhatcould beconsidered basictelecommunications
arenotreserved tothemonopoly, e.g.facsimile, telex, datatransmission, mobile,
satellite services;
(b) arethereanyothermeans through which foreign suppliers ofbasictelecommunications
areormayparticipate inthesupply ofbasic telecommunications, e.g.subcontract or
build-operate-transfer arrangements withthemonopoly suppliers.
Competition isallowed under Dominican law. Every concession contract contains aclause
sostating. However, thisbecame effective onlyin1990. Before then, theDominican Telephone
Company (CODETEL), aGTE subsidiary, hadadefacto monopoly.
In1990, theDominican Stateconcluded atelecommunications services "concession" contract
with thecompany Telepuerto SanIsidro (TRICOM). Inaddition, CODETEL concluded an
interconnection agreement withAllAmerica Cables &Radio which already heldaconcession contract
withtheState.
8. Please listandbriefly describe anyinter-governmental agreements, bilateral orotherwise, that
yourGovernment hasentered intorelating tothesupply ofbasic telecommunications networks and
services.
TheDominican Republic isamember oftheInternational Telecommunications Satellite
Organization (INTELSAT) which wasestablished on20August 1971.
TheDominican Government designated CODETEL astheprivate entity toparticipate inthe
INTELSATOperatingAgreementasthecountry'srepresentive,inaspecialcontractof7October1989.
However, theDGT hasprovided thatallconcession holders mayuseINTELSAT services. Satellite
access thusexists under anopenskies system.
PART II
Competition
Forthesubsector andcategory headings insections AandB,thefivequestions listed below
should beaddressed foreachsubsector andcategory thatyoudescribe. Recognizing thatsubsectors
andcategories mayoverlap, please keepinmind thatitistheintroduction ofcompetition andtheway
ithasbeenintroduced thatshould determine howtoselect which subsectors andcategories covered
inyourresponses.
(i) Overview. What arethemain government policies andregulations regarding the
competitioninthissubsectororcategory?Canforeignsuppliersparticipateinthesupply
ofbasic telecommunications inthissubsector orcategory?
(ii) Modes ofsupply. Inyourview, howdotheGATS modes ofsupply (cross-border,
consumption abroad, commercial presence, andpresence ofnatural persons) apply
tothissubsector orcategory? What kinds ofrequirements, conditions orlimitations
areapplied inthissubsector orcategory which relate toeachmode ofsupply?S/NGBT/W/3/Add.30
Page4
(iii) Market access. What kinds oflimitations onmarket access areapplied? (i.e.arethere
anyquantitative limitations on,oreconomic needs testsapplied to,thenumber of
suppliers? Arethere anylimits onthetotalvalue oftransactions, totalnumber of
operations, quantity ofoutput, orthetotalnumber ofpersons thatmaysupply basic
telecommunications orbeemployed byasupplier? Arethere anyrestrictions or
requirements regarding typeoflegalentity thatmaysupply basictelecommunications?
Arethere anylimits onforeign ownership orequity participation?)
(iv) Nationaltreatment.Whatkindoflimitationsonnationaltreatmentareinplaceextending
toforeign suppliers treatment lessfavourable thanthatfordomestic suppliers? (e.g.
arepreferences given todomestic suppliers orrestrictions orobligations imposed on
foreign suppliers withrespect toanyprocedures orregulations, including licensing?
Arethere anylimitations onthenationality orresidency ofmanagers, directors, or
board members? Arethereanyrestrictions onforeign ownership oflandorfacilities?)
(v) Licensing. Iflicensing isrequired inthissubsector orcategory, briefly describe the
procedures concerned andexplain themain requirements, criteria andfeesapplied.
What aresome oftheprinciple terms andconditions onlicensees, oncealicence is
obtained?
A. Subsectors
Foranysubsector inwhich competition ispermitted inyourregime (i.e.which arenotreserved
tomonopoly orexclusive suppliers) answer questions (i)through (v)above, asapplicable. Thefollowing
listofsubsectors isconsidered illustrative andshould besupplemented withanyother subsectors or
sub-activities which youmaywishtodescribe:
(a) Voice telephone services;
(b) packet-switched datatransmission services;
(c) circuit-switched datatransmission services;
(d) telexservices;
(e) telegraph services;
(f) facsimile services;
(g) private leased circuit services; and
(o) other
Thefollowing aresome additional examples ofbasictelecommunications networks orservices
notexplicitly listed in(a)-(g) and(o),above, forwhich responses mayberelevant: voice/non-voice
services using domestic/international private leased circuits; cable-TV-related voice telephone networks
andservices; domestic/international satellite services andsatellite links/capacity; analogue/digital
cellular mobile networks andservices; PCsnetworks andservices; paging services; mobile data
services; fixedline/wireless localaccess; local/long-distance linelinks; local/long-distance switching;
international switching andother international gateway facilities. Whereas some ofthese might be
considered tofallunder (o),above, some might alsobeconsidered tobeactivities falling within
subsectors (a)-(g).S/NGBT/W/3/Add.30
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Before listing thevarious subsectors ofthetelecommunications service provided inthe
Dominican Republic, some explanation isnecessary. TheTelecommunications Act,No.118,of
1February1996,stipulatesthata"concession"isrequiredforoperatingfixedservicetelecommunications
stations, which willbegranted bytheExecutive intheformofacontract laying down therequirements
forsuchoperation, which include commercial presence.
Inaccordance withexisting practice andtheprovisions oftheabove Act,theExecutive provides
inthecontract inquestion thattheservice supplier mayprovide allforms oftheservice except telegraphy
which isstillreserved totheState. Inother words, acompany thathasobtained aconcession will
nothavetoseekanyadditional permit orauthorization tooperate anewtelecommunications service.
Thereplies tothequestions onthesubsectors thusapply generally except forthespecific cases
expressly indicated.
(i) Thesupply ofservices inallthesubsectors isopentocompetition. Thesuppliers are
CODETEL, TRICOM andAllAmerica Cables &Radio (AAC&R). Thelatter does
notoffer localcallservices.
(ii) Theexisting legalregime isopentoallmodes ofsupply without limitations onnational
treatment andmarket access, other thantherequirement ofcommercial presence for
thesupply ofbasic telecommunications local services. Ineffect, themajority
shareholder ofCODETEL isGTE, while Motorola owns40percentoftheshare capital
ofTRICOM.
(iii) Decree No.2543 requires anyforeign natural orlegal person wishing toacquire
premises ofover2,000 square metres (2,000 m2)tofirstobtain authorization from
theExecutive. Similarly, theLabour Code provides that80percentofthestaff
employed byforeign companies must beDominican nationals. Lastly, commercial
presence isrequired forthesupply ofbasic telecommunications services.
(iv) There arenolimitations onnational treatment.
(v) Once thecompany hasobtained the"concession" from theExecutive, itmustobtain
apermit orauthorization from theauthorities ofmunicipalities concerned inorder
toprovide thetelephone service. Similarly, ifacompany wishes toestablish networks
orfacilities ofanother type,itmustobtain apermit fromtheMinistry ofPublic Works
andfrom theauthorities ofadministrative district concerned.
B. Categories
Foreachofthecategories thatfollow inwhich competition ispermitted, answer questions (i)
through (v)above, asapplicable, aswellasthespecific questions listed under agiven category.
Local/long-distance/international
1. How arelocalanddomestic long-distance distinguished ordefined?
Bothterms areclosely linked tothetariffarea. Thisisdefined asthegeographical areaserved
byatelephone network, inwhich asingle tariff isapplied.
Thus,thelocalservicecomprisesallserviceschannelledthroughcallsoriginatingandterminating
within onetariff area.S/NGBT/W/3/Add.30
Page6
Thedomesticlong-distanceservicecomprisesalltheserviceschannelledthroughcallsoriginating
inagiven tariff areaandterminating inanother tariff area, bothlocated within thenational territory.
2. Arethere anyregulatory orother distinctions between domestic (local andlong-distance) and
international networks andservices andbetween thesuppliers ofbasic telecommunications inthese
market segments? Ifso,whatarethey?
There arenoregulatory distinctions between thesetypeofnetworks. Theconcessions granted
sofarenable thecompanies toparticipate inallforms ofpublic telecommunications services, subject
totherequirement ofcommercial presence inthecountry.
Wire-based
There arenodistinctions. These services areregulated onlybyArticle 2ofRegulation 84-93
implementing theCopyright Act.
Radio-based
Note: Please address alltypes ofrelevant radio-based telecommunications including satellite links,
access tosatellite capacity, VSAT, mobile cellular communications, paging, mobile dataservices and
otherradiocommunicationssystems.Recognizingthatwire-basedor"fixed"networkscanberadio-based
inpart,responsesunderthiscategoryshouldrelatetoanyrequirementsspecificallyrelatedtoradio-based
elements ofnetworks orservices.
These services arecovered byTitleIV,Chapter IoftheTelecommunications Act,No.118,
of1February 1966.
Inthecaseofradiolocation, thecompany mustapply totheDGT forallocation ofafrequency
channel tooperate thisservice, inaccordance withArticle 9(f)ofDGT Resolution No.2.91of
22August 1991.
Withregardtoaccesstosatellitetransmissions,althoughCODETELwasdesignatedassignatory
oftheINTELSAT Agreement torepresent theDominican Government, DGT Resolution 94-003 of
20May1994requires CODETEL tofacilitate theaccess oftheothersuppliers ofthetelecommunications
service toINTELSAT circuits.
Resale basis
3. Doyourregulations permit international resale ofprivate-leased circuit capacity ifconnected
tothepublic network? Ifsoatoneend? Atbothends? Under what conditions? Isresale of
switched-voice capacity permitted?
Private-leased circuits inthedevelopment oftelecommunications intheDominican Republic
are"point topoint" dedicated circuits, andassucharenotconnected tothepublic network.
4. Isresale private-leased circuit excess capacity permitted? Ifso,under whatconditions? May
basic telecommunications beresold tomake them available tothird parties? Forwhich basic
telecommunications isthispermitted?
There arenoprovisions restricting resale.S/NGBT/W/3/Add.30
Page7
Facilities-based
5. Maybasic telecommunications suppliers (foreign anddomestic) construct andoperate their
ownnetworks orinvest inconsortia toconstruct andoperate suchfacilities? Ifnot,whatorganizations
arepermitted toconstruct andoperate basic telecommunications network infrastructures?
Yes.
Public/non-pubic supply
6. Does yourregime make distinctions between suppliers ofpublic switched andnon-public basic
telecommunications? Ifso,how?
There arenoprovisions inthisarea.
7. What basic telecommunications doyourregulations require, explicitly orineffect, tobemade
available tothepublic generally?
There arenoprovisions inthisarea.
8. What basictelecommunications doyourregulations permit tobesupplied onanon-public basis
(i.e.notrequired tobemade available tothepublic generally)?
There arenoprovisions inthisarea.
9. What obligations orresponsibilities areincurred bystatus asapublic basictelecommunications
supplier andunder whatconditions? E.g.whatkinds of"common carrier"-like obligations areimposed
(e.g. withregard touniversal service), andonwhom?
Theexisting legalregime provides thatconcession-holders oftelecommunications services must
ensure thesupply oftheuniversal service. Tothisendthecross-subsidy scheme wasdevised, whereby
theconstruction ofthelocalnetwork andthesupply oflocalvoice services atareasonable costwould
befinanced from theincome from long-distance transmissions.
However, withtheliberalization oflong-distance ratesandthearrival ofnewcompetitors in
these services since 1990, thereform ofthetelecommunications regime willintroduce anewconcept
ofuniversal service without restrictions onfreecompetition andthefixing ofcompetitive prices across
theboard.
10. What, ifany,restrictions arethere onorganizing andoffering aprivate network bya
telecommunications supplier?
There arenoprovisions inthisarea.
11. Istheoperation ofpublic pay-phones reserved tomonopoly orexclusive suppliers?
No.S/NGBT/W/3/Add.30
Page8
PART III
Regulatory Issues
Inrespondingtothequestionsinthissection,participantsareaskedtoprovidespecificreferences
tothesource orstatus ofthemeasures concerned (e.g. where possible, acitation ofthelaw,regulation,
rule,guideline, decision ordecree).
Relationship between regulatory andoperational functions
1. Doanybasictelecommunications suppliers become involved, directly orindirectly, inmaking
regulatory policy? Enforcement ofregulations? Informulating standards orenforcing standards?
There arenoprovisions inthelegislation which stipulate thattheregulatory body isrequired
toallow service suppliers totakepartinformulating standards orregulations. Inpractice, however,
theauthorities seektheopinion ofservice suppliers before adopting astandard orrequesting technical
assistance abroad. Forexample, therecent resolutions oninterconnection wereformulated bytheDGT
withtheadvice oftheInternational Telecommunication Union (ITU), attherequest oftheprivate
companies involved inthesector.
On15August 1995work began onareform ofthecountry 'slegal, institutional andregulatory
telecommunications regime withthetechnical assistance oftheITUandfunding fromthefourcompanies
authorized tooperate inthecountry, under thecoordination oftheTechnical Secretariat ofthePresidency
andwiththeactive participation oftheDGT. Theobjectives ofthereform include:
Updating oftheTelecommunications Act;
institutional planning ofanew, decentralized andparticipatory regulatory body, to
beself-financing andhavetotaladministrative autonomy;
newstandardsoninterconnection,typeapproval,numbering,user-protection,arbitration,
authorization forsupplying services, rates, service quality, issuance oflicences for
radio communication services anduseoftheradio spectrum;
plans fortransmission, tariffication, numbering, routing, signalling, synchronization,
service quality, access, security andallocation offrequencies.
2. Isyourregulatory authority (orauthorities) alsoresponsible forformulating standards? For
enforcing standards?
Section 140ofTelecommunications Act,No.118of1February 1966, authorizes theDGT,
which comes under theDepartment ofPublic Works (SEOPC), totakeadministrative measures to
facilitate compliance withthelaw.
Similarly, theSEOPC issues resolutions setting standards forthesector. Fortheirenforcement,
Sections 129and130ofActNo.118empowers theDGT toimpose sanctions.
3. Howmany levels ofgovernment (e.g. national, regional, state, local) haveresponsibility for
regulationaffectingbasictelecommunications?Pleaseidentifyanddescriberelevantlevelsofgovernment
authority. Arethereanyprocedures enabling suppliers toresolve questions ordisputes theymayhave
ortoappeal adecision withtheregulatory body concerned? Ifso,please describe.S/NGBT/W/3/Add.30
Page9
Thegovernment bodies empowered toregulate telecommunications aretheSEOPC andthe
DGT. Thejurisdiction ofbothisnationwide.
Withregardtoprocedures,ActNo.1494of31July1947establishestheAdministrativeTribunal
towhich alldecisions oftheadministration oranyadministrative bodymaybeappealed. Theappeal
procedure ishierarchical; DGT decisions maybeappealed totheSEOPC, itshierarchical superior,
andSEOPC decisions maybeappealed totheAdministrative Tribunal.
Inaddition, on20May 1994 theDGT issued theRegulations ontheInterconnection of
Telecommunications Networks. Theyestablish anarbitration procedure foranydisputes thatmayarise
inthisarea.
TheArbitration Commission iscomposed oftheDirector oftheDGT, theSecretary ofPublic
Works andarepresentative oftheTechnical Secretariat ofthePresidency.
Frequency allotment orassignment
4. What aretheprocedures, requirements andcriteria applied fortheallotment orassignment
ofradio frequencies?
Section 9(f)ofActNo.118empowers theDGT toassign frequencies toradio stations.
Applicants must submit thefollowing documents totheDGT:
Thedocument attesting theirstatus asanatural orlegalperson inaccordance withthe
procedures laiddown intheAct;
aproject description ,using theappropriate form supplied bytheDGT;
proof ofeconomic capacity andgood standing.
5. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?
Yes.
Numbering andidentification codes
6. What aretheprocedures, requirement andcriteria usedtoassign numbering andidentification
codes?
Fortheassignment ofnumbering andidentification codes theDominican Republic isinworld
areaNo.1,together withtheUnited States andtheother Caribbean countries. Accordingly, itfollows
theprocedures ofBELLCORE, theUnited States company thatcontrols areascodes (NPA) and"office"
codes orthefirstthree digits oftheseven making upatelephone number.
7. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?
Yes.S/NGBT/W/3/Add.30
Page10
Standards, typeapproval andequipment attachment
8. What types ofmandatory standards areinplace?
None. Inpractice BELLCORE standards areused.
9. When astandard isunder review oranewstandard isbeing developed byyourstandards
authority, isthereanyopportunity forpublic review andcomment priortoitsadoption? Mayforeigners
participate inthisprocess? Maytheprivate sector participate inthedevelopment ofstandards? If
so,how?
Nostandards orlegal provisions require participation oftheprivate sector orforeigners in
theformulation ofstandards affecting thesector. Seeanswer toQuestion 1.
10. Whatequipmentissubjecttotypeapproval?Isself-certificationallowed?HasyourGovernment
concluded mutual recognition agreements fortelecommunications equipment certification? Arethey
required forforeign produced equipment?
IntheDominican Republic there arenoprovisions governing equipment certification. The
standards thatwillresult from thereforms nowunder waywillbeinlinewithexisting international
ones.
11. Howistheability toattach terminal equipment tothenetwork regulated? What restrictions
arethere onterminal equipment thatmaybeattached tothenetwork?
DGT Resolution No.4-91of29November 1991provides thattelecommunications companies
mustmake theirequipment available tousers. Italsorequires them toallow anyother company to
connect terminal equipment totheequipment oftheother companies without restrictions astothetype
ofequipment tobeused.
Inaccordance withabove-mentioned Resolution No.4-91, atelecommunications company
connecting itsterminal equipment totheequipment ofanother company isresponsible forensuring
thatthetelephone linescomply withinternational telephony standards asregards bothequipment and
quality ofservice. Intheevent ofdispute, thetechnical department oftheDGT willissuetherelevant
certification andtypeapproval.
12. Maybasictelecommunicationssuppliersconnectedtothepublicnetworkusetheirownswitches?
Yes,there arenorestrictions inthisarea.
13. Does theGovernment require network-based suppliers topermit theattachment of
customer-supplied terminal equipment?
Yes,under theprovisions described intheanswer toQuestion 11.
Interconnection
14. Ingeneral, howisinterconnection regulated inyourregime? What aretheregulations applied?
Thestandards governing telecommunications company interconnection aresetoutin
Resolution 94-003 of20May1994 andResolution 95-001 of7April 1995, bothissued bytheDGT.S/NGBT/W/3/Add.30
Page11
Theabove Resolutions require operators tointerconnect thetelecommunications networks of
which theyholdtheconcession inorder toprovide services intheterritory oftheDominican Republic,
sothatthetraffic generated inonenetwork mayterminate intheterminal network ofaninterconnected
operator.
The"SINGLE NETWORK" concept isbeing introduced, whereby subscribers toonenetwork
willbeabletocommunicate withsubscribers ofanother network, within thenational territory.
15. Doyourregulations require network-based suppliers toprovide interconnection forother basic
telecommunications network orservices suppliers?
Yes.
16. Isinterconnection between leased circuits andpublic datanetworks permitted?
Yes,under Article 1ofabove-mentioned Resolution 94-003 which provides forinterconnection
forvalue-added services.
17. What aretherulesandregulations regarding thepricing ofinterconnection? Areinterconnection
charges setinrelation toanyprinciples (e.g. costoriented)? Isthere arequirement tosubmit
interconnection charges toaregulatory body forapproval? Arethese charges inthepublic domain?
Arethesameinterconnection charges applied toallthesuppliers requesting interconnection ofarethey
negotiated onacase-by-case basis? What requirements orobligations existtopublish, make publicly
available ortosupply details ofinterconnection agreements toregulatory authorities?
Resolution 94-003 establishes theeconomic factors togovern thepricing ofinterconnection.
They are: (i)access charge, subdivided intoacharge foruseandalocal service subsidy charge;
(ii)interconnection costs and; (iii)distribution ofpayments between companies.
Article 12ofResolution 94-003 fixesthevalues tobeapplied tothese access charges. For
useofthelocaland/or national network, itestablishes acharge ofRD$0.95 perminute ofpaidservice;
andforthelocalservice subsidy, RD$0.70 perminute ofpaidinternational service.
TheratesaresetbytheDGT inaccordance withitsowncostcalculations. Asstated earlier,
theDGT setstheinterconnection cost,applying thesame ratestoallcompanies.
There arenoprovisions requiring publication ofinterconnection agreements. Their signatories
havesoleandexclusive knowledge ofthem.
Competitive safeguards
18. Whatkindsofsafeguardsdoesyourregimehaveagainstanti-competitivepracticesofmonopolies
ordominant suppliers insituations where theymaycompete withother firms tosupply certain basic
telecommunications inthedomestic market? Intheinternational market?
There arenoprovisions onsafeguards against anti-competitive practices ofdominant suppliers
withregard tothesupply oftelecommunications services, either inthedomestic market, orinthe
international market.S/NGBT/W/3/Add.30
Page12
19. Doyourregulations distinguish between dominant andnon-dominant suppliers? Ifso,what
arethedetails andhoware"dominant" and"non-dominant" defined? Arethere anysafeguards
concerning suppliers whohavemonopoly ordominant control ofaccess tocertain market ornetwork
segments?
Article 1ofSEOPC Resolution 1-95refers totheconcept of"main carrier" inthecontext of
international long-distance calls, defined asthetelecommunications company having themosttraffic
ininternational callsonagiven route. According tothisdefinition there maybeseveral suppliers
acting asmaincarrier, depending ontheroute. Telecommunications companies operating inthecountry
willnegotiate anaccounting rateequal totheoneagreed bythemain carrier. Thissystem applies
forpurposes ofclearing between concession holders andcompanies outside thecountry. There are
nosafeguards applying tomonopoly suppliers.
20. Isthereanindustry-wideantitrustpolicyand/oranytelecommunications-specificantitrustpolicy?
What aretherules andregulations regarding mergers andacquisitions?
There isnoantitrust policy. Norarethere anygeneral provisions regarding mergers and
acquisitions. However, theoperating licence contracts granted tothetelecommunications companies
contain aclause stipulating thattherearenorestrictions onthetransfer ofthecontract toprivate, national
orforeignnaturalorlegalpersons,subjecttoauthorizationfromtheExecutive.However,itisprohibited
inthecaseofinternational legalentities.
Itisplanned tocreate alegalandinstitutional regime forcompetition inthecountry, taking
asthebasis thework donebyUNCTAD intheareaofprotection against restrictive trade practices
andconsumer protection.
Similarly, thereform ofthetelecommunications regime inthecountry willinclude explicit
provisions toprotect freecompetition inthesector inboththenewTelecommunications Actandthe
specific regulations which willbeissued asthereform isimplemented.
21. Arethere anysafeguards concerning basic telecommunications suppliers alsoengaged inthe
manufacturing oftelecommunications equipment? Ifso,please describe thecontent andworking of
these safeguards.
TherearenomanufacturersoftelecommunicationsequipmentintheDominicancustomsterritory.
Accordingly, there arenoprovisions inthisarea.
Pricing-related measures
22. What istheroleoftheGovernment oranyrelated agency withregard toestablishing prices
(e.g., tariffs, access charges, accounting rates) orpricing policy? E.g., doestheGovernment setprices
oraccounting rates, directly orindirectly (e.g., price capsorrateofreturn controls), ordobasic
telecommunications suppliers determine thesethemselves? What requirements orobligations doesthe
Government setregarding prices charged bymonopolies/dominant suppliers? Orother suppliers?
TheSEOPC intervenes insetting theprices forthebasic residential telephone service. The
other modes ofbasic telecommunications, national longdistance, international longdistance, mobile
communications etc.,aresetfreely bythesupplier oftheservice. Recently, inaccordance with
Resolution 2-95issued bytheSEOPC on23January 1995, therateswerefixedforthebasicresidential
service, withaseries ofincreases uptoDecember 1996. Under theabove Resolution, suppliers of
theservice areallowed toadjust theestablished prices inaccordance withtheexchange and/or inflationS/NGBT/W/3/Add.30
Page13
rate,asfrom December 1996. However, theadjustment must firstbesubmitted totheSEOPC for
approval orrefusal within 30days.
With regard toaccess charges, these were fixed bytheDGT forinterconnections in
Resolution No.94-003 of20May1994 amended byanewDGT Resolution of7April 1995.
Asregards theaccounting rate,theGovernment doesnotsetprices directly. Inaccordance
withResolution No.1-95of3January 1995, telecommunications companies operating inthecountry
willnegotiate anaccounting rateequal, foragiven route, totheoneagreed bythetelecommunications
company withthemost outward traffic ontheroute (themain carrier).
23. DoestheGovernment require tariffapproval ornotification and,ifso,whataretheprocedures?
What requirements regarding costaccounting areputinplace toensure transparency?
Theonlytariff fixed withdirect government intervention istheoneindicated above forthe
basic residential service.
24. Towhatextent istheprinciple ofnon-discrimination applied inpricing policy? E.g., isatariff
package suchasavolume discount targeted foraspecial group allowed and,ifso,whataretheterms
andconditions applied? Areaccounting ratesapplied onanon-discriminatory basisbetween countries?
Ifaccounting ratesapplied indifferent agreements arenotthesame, whatarethecriteria usedtoarrive
atdifferent accounting rates? Aresome ofthese criteria required ordefined bytheGovernment?
Asindicated above, under Resolution 1-95, theaccounting rateissetbythemain carrier.
TheResolution alsoprovides thattariffs atagiven point, fortraffic originating intheDominican
Republic, maynotbelessthanthose applied totraffic towards theDominican Republic originating
atthatsame point.
25. Doanybasic telecommunications suppliers getinvolved insetting industry-wide tariffs?
Existingtelecommunicationslegislationdoesnotprovideforanymechanismfortheparticipation
oftheprivate sector insetting sector prices. However, theDGT veryfrequently allows thesector
toparticipate initsdecisions.
26. Onwhatbasis areprices (e.g., tariffs, access charges, accounting rates) determined? What
concepts areapplied regarding costs? Isthereageneral principle applied regarding allocation ofcosts?
Iscost-oriented pricing ofbasic telecommunications usedorrequired bytheGovernment? Ifnot,do
basic telecommunications suppliers usecost-oriented pricing?
Each company fixesitsprices, except forthebasic residential service described above, and
theaccounting ratesandaccess charges inthecaseofinterconnection, asindicated earlier.
27. Towhatextent istheprinciple ofnon-discrimination applied inpricing policy? E.g., doany
specific groups benefit from tariff packages suchasvolume discounts? Isthisallowed? What are
theterms andconditions applied?
There arenolimitations onthediscounts thattelecommunications companies mayapply to
theircustomers. Accordingly, companies offerdifferent types ofpackages which mayinclude volume
discounts, acombination ofdifferent types ofservices andfacilities, including vouchers which may
beredeemed inexchange forminutes ofuse.S/NGBT/W/3/Add.30
Page14
Thepackages offered areapplied tospecial segments ofthemarket suchasthetourism sector,
enterprises inthefreezoneandindustrial groups. Thus, there isnodiscrimination intheapplication
ofpackages.
Rights ofwayfortheconstruction ofinfrastructure
28. Arebasic telecommunications services suppliers permitted tobuild theirowninfrastructure
orfacilities? Ifso,what aretheprocedures andcriteria forauthorization tobuild infrastructure or
facilities? What aretheprocedures, criteria, limitations orqualifications applied withrespect tothe
granting ortheavailability ofrights ofwayfortheconstruction ofinfrastructure orfacilities?
Asarule,theconcession contract granted bytheStatetotheservice supplier includes aclause
empowering theservice supplier toconstruct itsnetworks andinfrastructure ingeneral.
However, above-mentioned ActNo.118stipulates that,toobtain arightofwayforinstallation
ofthecorresponding infrastructure, thecompany mustobtain theapproval oftheDepartment ofPublic
Works andtheauthority oftheadministrative district where theinfrastructure inquestion istobe
installed.
29. Isnational treatment extended toforeign basic telecommunications suppliers under these
procedures andcriteria?
Yes.
Newtelecommunications services
30. Please describe anygeneral regulatory processes orprocedures thatapply todealing withthe
introduction of"new" telecommunications services. Prior toanyrelevant regulatory procedure having
beencompleted isitnotpossible forsuchnewservices tobesupplied?
Asarule,theconcession granted bytheExecutive totheservice supplier includes alltypes
ofservices. Accordingly, nopermit orauthorization isusually required todevelop anewtypeof
telecommunications service oncetheconcession hasbeenobtained, except forservices operating with
frequencies, asisthecasewithmobile communications, asindicated inPartII.
31. When anewservice becomes possible oravailable, whodetermines thestatus ofthenewservice
(whether itisbasic orvalue added), andunder whatprocedure andtime-frame?
Notapplicable.