New Information and Communication Technology Services Licenses’ Regulation

The new Licenses’ Regulation intends to promote and boost free competition between telecommunications service providers by reducing the requirements to obtain a license. It emphasizes the need to have an objective and flexible license regime.

The main difference with the Former Regulation is  that obtaining a license is simpler and faster. On one hand, the obligation to submit the “Technical Plan” and the “Investment Plan” along with the step-by-step plan and the geographical coverage for the first three years of services provision is removed. Licenses’ Regulations only require the submission of a sworn statement regarding the compliance of regulations and technical specifications related to the Information and Communications Technologies Services (“ICT Services”) to be rendered.

The new Licenses’ Regulation sets forth the tacit issuance of licenses in the event that the Argentine Communications Entity (“ENACOM” after its Spanish acronym) does not expressly approve the request after 60 days of the date of submission.

Furthermore, telecommunications licensees are allowed to transfer their licenses or the share participation (whether direct or indirect) of their corporate capital a loss of corporate control as set forth in section 33 of Argentina’s General Companies Law (“GLC”), which is going to be considered performed as of ENACOM’s approval and must be informed to said entity within 30 days as of the closing of the transaction. ENACOM’s approval may be granted by deemed approval if ENACOM does not expressly reject the transaction within 90 days from the submission of the request for approval (in the event of any observation by ENACOM, then the referred term will be counted as from the reply and completion of the request by the applicant).

Unlike in the Former Regulation, section 2 of the Licenses’ Regulation establishes that lessors of passive or active infrastructure are exempt from obtaining a license; they only need to be registered in a special registry held by ENACOM to provide the mentioned leasing service.

The new Licensing Regulation implies greater speed and fewer obstacles to obtaining a license for the provision of ICT Services as well as authorization to transfer licenses or shares  in licensees.