Ecuador approves reform of Telecommunications Law

摘要

Ecuador's president Guillermo Lasso has signed Decree 126 reforming the country's Organic Telecommunications Law, in force since February 2015. The 18 articles of the reform package aim to priorities connectivity and efforts to reduce the digital divide, particularly in rural areas, rather than maximize tax revenues. In addition to capping the total regulatory obligations paid by operators at 2.5% of total revenues, the decree notably applies a narrower definition of their 'total income invoiced and received', discounting items such as income from the sale of handsets, SIM cards and assets not assigned to the concession, which should translate into a reduction in their total regulatory obligations. After the latest reform, a telco's annual investment plan may also count towards their universal service obligation (currently 1% of annual revenue), while spectrum tenders are expected to focus on maximizing coverage rather than government revenues.