Daily Archives: July 8, 2011

Telecommunications’ constraints Bolivian private sector

Red Erbol (news agency) reported that the government intends to control (new telecommunications law) at least 33% of the television and radio waves to government radios and TV stations. Another 17% will go to the social community sector, controlled by this government; and another 17% to indigenous organizations which are also controlled by the political party in government. Thus, leaving only 33% to commercial/private uses.

This distribution is said to cover only FM radio frequencies and analog TV. In addition, Digital TV broadcast will be authorized by Supreme Decrees alone. Foreign investment will be acceptable only if it is no more than 25% of its capitals; unless there are special Agreements/Treaties, as approved by the State. Licenses to operate will be for ten years and only renewed for one more time, additional ten years.

http://www.hoybolivia.com/Noticia.php?IdNoticia=50199&tit=el_gobierno_quiere_controlar_67%_de_las_frecuencias_de_radiodifusion

It could be argued that government will have a potential control of about 66% of those licenses. Furthermore, an investor will have to assess whether or not it makes sense to have an investment within a twenty year span, let alone how hard and important is to build credibility and keep a radio/TV in operation. As for the foreign investor, his decision to come over or not is certainly reduced to the minimum.