The initiatives of Competition, Leasing and the reforms to the General Law of Telecoms are some of the projects that the new administration of Giammattei plans to present to the Congress of Guatemala.
During his inaugural speech, the new president of Guatemala gave the first guidelines in the economic field, highlighting which projects should be streamlined in the Legislative.
More competitive prices, broadband expansion and number portability are some of the benefits that are not being taken advantage of in Guatemala because the regulations there have not been modernized.
The regulations in the country have been in force since 1996, and according to representatives from the sectors involved in the activity, they have become obsolete in some aspects, as coverage thereneeds to be improved and frequencies assigned in order to exploit the spectrum to the maximum.
The private sector is warning that the new law contains technical deficiencies and could harm free competition by creating different conditions for companies in the sector.
The Union of Cable Television Operators is opposing the rapid adoption of the Law on Control of Mobile Telecommunications in Prison Centers, because of a lack of consensus and consultation with the sector, the fact that it contains technical and legal gaps and could harm domestic firms through the generation of privileges and monopolies under the rule .
In Guatemala and proposals arising from the recently passed amendment to the Communications Act, which extended radio concessions for 20 years.
In light of the act coming into effect, deputies in the Transparency Commission are preparing a bill relating to the issue of transparency, Deputy Carlos Barreda, a member of the panel, said "We must establish that the usufruct be delivered through an auction or implement a public payment for its renewal.
The extension for another 20 years, without any fees, of the concessions for radio frequencies, will deprive the Guatemalan State of millions in income, and removes market transparency.
While in other countries concessions for the use of radio frequencies provide state coffers with many millions of dollars, in Guatemala, Congress has passed legislation extending licenses that are currently in effect for another 20 years, without any costs to the concessionaries, who in addition at the end of the period of usufruct, may renew them again.
Guatemala's Congress has amended the Telecommunications Act, increasing to 20 years the time of usufruct for the radio, television and telephony frequencies.
When the deadline has been passed, a request for extension can be made for a similar period.
"When parliamentarians were asked about why they supported the reform, most agreed that it was to create legal certainty for multinational companies wishing to invest in the country.
If approved, the usufruct of radio, television and telephony frequencies would be extended to 25 years.
The reform of the Telecommunications Act will allow beneficiaries of radio, telephone and television frequencies, who have been given usufruct for 15 years to request an extension to 25 years.
"If the law is passed, the Superintendency of Telecommunications (SIT) 'shall, no later than 15 days after filing the request for extension of the lease, provide the titles for a period of 25 years.'
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