Liberalization and Deregulation
Bolivia has made great strides since the mid-1980’s in developing its infrastructure and modernizing many aspects of its often rural culture. The election of President Sanchez de Lozada in 1993 ushered in a new era of liberalization and political reform.
The Bolivian government passed a series of privatization reforms in 1995, which have had a very positive impact on its economic development. In 1995 the Bolivian government passed new telecommunications laws revising its regulatory framework and initiating the privatization of ENTEL (the Empresa Nacional del Telecomunicaciones) the state-owned owned provider of domestic and international long distance telecommunications. Bolivia established a new telecommunications regulatory authority to oversee the privatization and transfer of the telecommunications services to the private sector. Currently monopolies exist on local and long distance services, which will expire in November 2001.
The new regulatory agency
created in 1995 was entitled the Superintendency of Telecommunications
(Sittel) and established the following:
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Rate-setting procedures for telecommunications services |
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Granted a 6-year period of exclusivity to the local telephone cooperatives |
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Limited the market share of existing private data transmission companies |
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Strengthened regulations and penalties for broadcasting of unauthorized programs |
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Banned international call-back services.1 |
Boliva became a member of the World Trade Organization (WTO) in 1995 and an associate member of MERCOSUR in 1997. Bolivia agreed to abide by the WTO Agreement on Basic Telecommunications Services, which became effective on January 1, 1998. In addition, Bolivia agreed to open its markets for all local data, telex, telegraph, fax, and non-public mobile services such as cellular, paging, Personal Communications Services (PCS) and mobile satellite services by January 1, 1998.
