Article 18º
Foreign capital
Foreign individuals or corporate legal entities may not hold majority
stakes in the equity capital of public or valueadded telecommunications
carriers.
Article 19º
Concession and license
1. Within the field of telecommunications, concession is the act undertaken
by the Government which consists of delegating to a specific public or private
entity the right to render public services, under contract, for a specific period,
with the utility accepting the business risks involved therein, deriving
compensation from payment made by users or from other alternative revenues,
and being held directly liable for its obligations as well as for any losses and
damages caused thereby.
2. Concessions are awarded for service areas in which the number of
licenses open to awards through concessions is contingent on constraints of the
radio electric spectrum or other technical constraints, or on services provided
nationwide which are of vital importance to the development of the economy
being, thus, under the jurisdiction of the State.
3. Examples applicable to the previous item are authorizations for
implementing the following types of infrastructure and public services:
a) Mobile landline services;
b) Transmission infrastructure supporting public networks;
c) Deployment of international access to the public service.
4. Concessions shall not be awarded on an exclusive basis and shall comply
with a Licensing Plan.
5. The other authorizations for infrastructure facilities and operation of public
services are subject to licenses issued by the Telecommunications Authority.
6. The Telecommunications Authority may issue an order delegating part or
all of its jurisdiction on this matter to the Regulatory Agency.