No To Politic Regulation of Prices

In El Salvador, many argue if Congress should establish the basic rate of fixed telephony.

Wednesday, March 3, 2010


©image: bengal*foam

An article in Elsalvador.com remarks that "economic analysts and representatives of the private sector argue that lawmakers shouldn't regulate prices, as they intend to do with a decree to lower the basic fee for fixed telephony. Manuel Enrique Hinds considers the Assembly should not be lowering or increasing rates, as that is one of the functions of the Telecommunications Superintendence".

Many also criticize the fact that lawmakers intend to regulate prices by setting them to the same levels of the rest of Central America.

More on this topic

International Calling Rates in El Salvador

April 2012

Telephone companies are appealing for a presidential veto against the establishment of international call rates by the regulator SIGET.

With the authentic interpretation of Legislative Decree 132, the Legislature gave the Superintendency of Electricity and Communications (SIGET) the authority to set international interconnection charges.

El Salvador Postpones Implementation of New Telephone Tariffs

October 2010

Congressmen extend by nine months the coming into effect of new tariffs.

Elsalvador.com writes, "Lawmakers of all political parties approved in April of this year an amendment to Article 8 of the Telecommunications Act which reduced the charge to $ 6.14 and calls to $ 0.21 per minute (both costs without VAT), but the Superintendence of Electricity and Telecommunications (Siget) has not created a chart with the maximum prices for fixed and mobile telephones, which would allow to reduce the basic rate, according to committee members of Congress´s Economy Commission. The extension request made by the Siget which creates delay in implementing the new rates will cause inconvenience to users.

Lower Telephony Rates in El Salvador

April 2010

Fixed residential telephony will drop 26% and the minimum rate for post-paid landlines will be $6.94.

The cost of calling from a landline to a mobile one will drop $0.02, from $0.26 to $0.24.

From Laprensagrafica.com: “The decree also sets at $0.09 the termination cost in either mobile or fixed networks. ‘Users may not be charged above the maximum fee for any extra air time or network usage’ reads the decree”.

Salvadoran President Won't Sanction Fixed Telephony Decree

January 2010

President Mauricio Funes announced he will not sanction the decree which eliminates the basic fee for fixed telephony.

Once the decree falls in his hands, the president may constitutionally sanction it, observe it or veto it. To lift the veto, the Assembly needs to vote so by qualified majority.

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