do business in the Dominican Republic - Pellerano & Herrera

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DOING BUSINESS INTHE DOMINICAN REPUBLICcompanies providing public telecommunications services,a representative of thecompanies providing broadcasting services, and a member who will representthe interests of consumers.INDOTEL initiated its operations in 1999 and has since then worked actively andinnovatively in order to ensure the application of Law 153-98 and to organize andpromote the telecommunications market.This entity has indeed carried an active process of construction and implementationof the legal framework required for the proper functioning of telecommunications.In this regard, in addition to the legal instruments mentioned in thissection,there have been a large and varied number of resolutions,regulations andrules adopted in the last years to guarantee the efficiency of the system andimprove the quality of service, within an absolutely institutional context.b) Telecommunication Services. Law 153-98 applies to the following telecommunicationservices:Public services for the transport of telecommunications, such as telephone,telegraph, telex and any transfer of information between two or more points,without any change from one point to the other in the form or contents ofsuch information.These services may be carrier services, final or teleservicesand value added services.Broadcasting services, which may be radiobroadcasting services by sound ortelevision,by earth waves or satellites,or cable or other broadcasting service,and are provided to the public in general. Broadcasting services are regulatedby Law 153-98, as well as by the applicable laws in the fields of socialcommunications and copyrights.c) Procedures. Law 153-98 sets the principle of free provision of telecommunicationsservices, and any company that complies with the established requirements(which include the need to be organized as a Dominican limited liabilitycompany) is thus entitled to request concessions for the provision of telecommunicationsservices, which are granted by INDOTEL for renewable periods offive or twenty years. Concession requests must be handled pursuant to the principlesof equal treatment and no-discrimination.As to broadcasting services, the applicants must be Dominican nationals, andconcessions are granted through public bidding.A license is also required, whichis issued simultaneously with the concession.There are certain telecommunication services that do not require concessions,being only subject to special registration systems. These services are maritimeand aeronautic services, value added services, resale of services and privatetelecommunications services.Finally, any telecommunications equipment to be connected to any network orsold in the country must have a Certificate of Ratification issued by INDOTELafter carrying out the relevant technical verifications.INDOTEL Resolution 0007-02 of 24 January 2002 adopted the Regulation on74
Pellerano & HerreraAttorneys at lawConcessions, Registrations and Licenses to provide Telecommunications Servicesin the Dominican Republic.d) Rights of Concession Holders. Since the provision of telecommunication servicesis of public and social interest, concession holders are entitled to the followingin order to install their networks and/or equipment:1. To connect their equipment to public telecommunication networks.2. To use public property.3. To create easements on private property.4. To interconnect their networks with other concession holders.The owner of the network or property is bound to consent to such operations,pursuant to terms and conditions to be agreed with the concession holder.In theevent of disagreement INDOTEL may intervene to set such terms and conditions.By way of Resolution No. 042-02 of 15 February 2002 INDOTEL adopted theRegulation on Interconnection for Networks of Public TelecommunicationsServices.e) Technical Norms. Concession holders are bound to comply with the basictechnical plans and technical norms fixed by INDOTEL.These norms must be inaccordance with the international practices applied in the zone to which thecountry belongs, which is the World Zone Number 1 (formed by United States,Canada and a group of Caribbean islands), and with the recommendations of theinternational organizations to which the country belongs.75f) Competition Rules. Law 153-98 sets forth a number of rules in order to promotethe free operation of the telecommunications market in conditions of effectivecompetition.First, the law provides that one of the purposes of the regulatory body of the sector,INDOTEL, is to “ensure the existence of a sustainable, fair and effective competitionin the provision of public telecommunications services”. Furthermore,the decisions of this entity must be taken on the basis of the minimum regulationrule and the maximum operation of the market, being obliged to act in such away that the effects of its decisions equal those of a loyal, effective and sustainablecompetition whenever such competition does not exist.The law sets also the principle of free pricing,and companies may thus freely fix thetariffs they charge to their customers.INDOTEL may intervene in this field only whenthere are not enough conditions in the market to ensure an effective competition.Furthermore, the law sets the principle of free negotiation between serviceproviders wishing to sign co-operation or interconnection agreements. Suchagreements must not contain provisions which are discriminatory or which distortcompetition.Finally, Law 153-98 forbids unfair practices such as:False publicity intended to hinder or limit free competition.The promotion of services based on false declarations, related to disadvantagesor risks of competitors' services.
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