YOU ARE AT:AmericasLatAm Wrap-Up: OECD says Colombia should empower regulator; Brazil’s 700 MHz auction

LatAm Wrap-Up: OECD says Colombia should empower regulator; Brazil’s 700 MHz auction

The Colombian regulator needs more power to increase competition in the telecommunications sector,  according to a new report from the OECD (Organization for Economic Co-operation and Development). The report does recognize that Colombia has done a lot to strengthen the rules governing its telecom sector, but the country still has a highly concentrated mobile market—the dominant mobile operator controls around 60% of the market, compared with an average of 42% in other OECD countries. The OECD found that the country’s Communications Regulation Commission (CRC) lacks independence and sanctioning powers.

Among its recommendations, the OECD said the CRC should be more independent and responsible for enforcing regulations. It should be given the power to impose sanctions for non-compliance and have the authority to conduct spectrum auctions, or establish auction criteria, given the auctions’ implications for competition. The report suggests that the merger of the CRC and the national television authority, ANTV, would ease the shift to greater convergence.

To increase competition, the OECD recommended that the CRC should prevent off-net/on-net price discrimination and reduce termination rates to close to zero for all operators except for new entrants, and do more to protect people from excessive international roaming charges. It should also ensure number portability and set up better facilities for complaints. Other suggestions include removing barriers to building new telecom infrastructure and promoting the development of Internet exchange points.

Mobile penetration in Colombia is on level with the OECD average of 105%, but wireless broadband adoption remains low, since many Colombians still rely on 2G connections.

Brazil’s 700 MHz auction: A draft proposal for the auction of the 700 MHz spectrum for LTE indicates that Brazil’s regulator Anatel will auction four blocks of 10 MHz + 10 MHz. Also, Anatel will consider three national licenses and multiple permits for three regions of the country. In case one of the blocks is not sold, the agency will split it into two blocks of 5 MHz + 5 MHz. The cost to clean up the spectrum and supply filters will be factored into the auction terms which will be published 30 days before the bidding in August, resulting in a lower minimum bid.

Anatel plans to hold the auction in August, although telcos and broadcasters are calling for a postponement. The government expects to raise at least R$7 billion (U.S.$3.2 billion).

More news from Latin America:

Wondering what’s going on in Latin America? Why don’t you follow me on Twitter? Also check out all of RCR Wireless News’ Latin American content.

ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, [email protected] 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.