Regulator closes round for CTC rate comments

Chile's telecom regulator Subtel on Sunday closed the window for receiving feedback on tariff proposals made in November by dominant fixed-line operator Telefonica CTC Chile (NYSE: CTC), a Subtel spokesperson confirmed for BNamericas. CTC's proposals for the decree, which will run for five years from May 2004, would let it significantly increase the rates it can charge compared to the regulator's current tariff regime, due to end in May of next year. CTC wants to hike interconnection fees with rival operators to 14.6 pesos a minute from 6.6 pesos a minute, raise the peak rate charge for voice calls to 38 pesos a minute from today's 24 pesos, and up the off-peak rate to 12.7 pesos a minute from 4 pesos. CTC also wants the country to be divided into 20 charging zones, rather than four, giving it more flexibility to apply different regional charges. Chile's antimonopoly commission, the CRA, recently backed this option for greater freedom. Subtel will use comments from operators and consumer groups to prepare a report on "objections and counterproposals" that will be released on March 5, 2004. After that, Subtel will request responses from CTC and other operators for a one-month period. During this time, CTC can call for an independent panel of experts to contribute. The regulator will then analyze all comments and feedback before publishing the final tariff decree on May 4.