Telcos must set up separate legal entities for local and LD services

Below is a summary of the main proposed changes in the fixed-line license contract posted for public comment on December 27, according to Anatel director Luiz Tito Cerasoli. The consultation period ends March 17:

* Licenses for local and long-distance service to be granted to different legal entities, obliging existing telcos to set up separate companies for this purpose and enabling Anatel to oversee services and above all interconnection more effectively
* Licenses to expire in December 2025, with opportunities for review and adjustment at the end of 2010, 2015 and 2020; public consultation on any changes proposed under such reviews to be held 24 months in advance

Notícias relacionadas
* Co-billing and co-collection to be provided on request in not more than 30 days
* Anatel to be empowered to impose interconnection regardless of commercial terms
* Failure to file interconnection contracts or obey an executive order on schedule will be deemed an unjustified refusal to provide interconnection, subject to appropriate penalties
* License agreements to include specific rules on local area demarcation, use of services and networks for Internet access, portability, penalties, standard accounting, and asset reversal, among others.

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