Under Law 153-98, any communication, information or data transmitted through telecommunications services is secret and inviolable, except where an interception has been authorized by a court in the specific cases established by law.

INDOTEL is also the regulator for e-commerce and digital signatures under Law 126-02 (see Information Technology), making it the single most relevant agency for technology businesses operating in the DR.

II. Telecommunications Services

Law 153-98 classifies telecommunications services as: (a) carrier services; (b) final services or teleservices; (c) value-added services; and (d) broadcasting services.

Carrier services supply the capacity necessary to transport signals between two defined network termination points, permitting the provision of other public or private telecommunications services. Carrier services may be local, domestic long distance or international long distance; the leasing of links or circuits is a carrier service.

Final services or teleservices supply the complete capacity for communication between users. Value-added services use carrier, final or broadcasting services as a base and add some characteristic or facility to the underlying service.

Broadcasting services may be sound or television broadcasting, public or private, over the air or by cable.

A Special Registry filing before INDOTEL is required to operate amateur radio, aeronautical mobile, private telecommunications, maritime mobile and satellite services, following the requirements established by the regulations and INDOTEL.

III. Concessions and Licenses

An INDOTEL authorization is required to provide public telecommunications services to third parties. The procedures for obtaining concessions are established by the law and its regulations.

To obtain a concession or a license for public telecommunications services, the applicant must be incorporated or registered as a legal person under Dominican company law and meet the qualifications required by the regulations.

Transfers of concessions and of control over concession holders require prior INDOTEL approval, a standard condition precedent in any acquisition of a Dominican telecom or cable operator (see Mergers & Acquisitions, section II).

IV. Spectrum Tenders

Where radio-electric spectrum is available for the provision of public radiocommunications services, INDOTEL calls a public tender for the granting of the corresponding concession or license.

Public tenders proceed in two stages: first, the qualification of participants under previously established, objective and non-discriminatory requirements; and second, the comparison of offers. The selection mechanism evaluates offers objectively, and the award goes to the most advantageous offer under the criteria stipulated in the tender.

This publication is provided for informational purposes only and not as legal advice. Any transaction related to any of the described aspects shall require advice and be specifically consulted with the Firm in advance. © Arthur & Castillo. All Rights Reserved. Next