LICENSING CONDITIONS IN THE TELECOMMUNICATIONS

UNCLAS SANTIAGO 001427 SIPDIS DEPARTMENT FOR EB/CIP TIMOTHY C. FINTON; USTR JONATHAN MCHALE/PAUL NEUREITER E.O. 12958: N/A TAGS: ECPS ETRD CI SUBJECT: LICENSING CONDITIONS IN THE TELECOMMUNICATIONS SECTOR - REQUEST FOR INFORMATION REF: SECSTATE 114687 ¶1. This message transmits information per reftel request on licensing conditions in the Chilean telecommunications sector. ¶2. The GOC does not assess any fees in connection with licensing fixed line services in excess of what is necessary to cover administrative costs. ¶3. The GOC only imposes capitalization or bonding requirements when concessions are awarded by means of a public competition. The purpose is to insure that the project is implemented as proposed; once the concessionaire fulfills the obligated project, the bond (or other form of guarantee) is returned. The level of such a requirement depends on each case. Type of service and coverage are considered when making an estimate. ¶4. No build-out investment requirements are imposed. KELLY