What changes does Uruguay's new audiovisual services law bring to the ICT sector?

Uruguay's new law on audiovisual communication services, which repeals the one approved in 2014, was finally passed in the lower chamber of congress in the early hours of Thursday.

The bill, which had been criticized for including articles that limit freedom of expression, also brings certain changes to Uruguay's ICT sector, such as modifying the number of licenses that a single owner can hold, and the possibility of incorporating foreign investment in service providers.

The bill was approved by the senate in May and is now in the hands of President Luis Lacalle Pou, who has decided to veto the article on freedom of expression. The Colorado party, which helped pass the law, has hoped that the president would not rubberstamp that controversial article.

Although the law regulates audiovisual services, it incorporates some of the changes that had already been implemented in the previous version of the law. For example, pay-TV service providers are allowed to apply for licenses to provide broadband services and internet access.

Cable operators can offer these services through their own networks, future developments or resources that they contract from third parties in the same coverage area as their respective license.

The regulation does not include an obligation for the state-owned telco Antel to open up its fiber optic network.

The opportunity for TV operators to internet services was included in the previous law in 2022.

FOREIGN INVESTMENT

The text enables foreign investment in pay-TV services as a percentage of the total share capital.

The prohibition on having legal corporate ties with foreign capital entities or being a subsidiary or affiliate of foreign companies must be adhered to by shareholders who represent at least 51% of the voting share capital.

LICENSES

The approved text increases the maximum number of licenses for cable television to eight. It stipulates that up to five licenses can be held in the metropolitan area of Montevideo and six in the rest of the country for providing services via the AM and FM bands, as well as one license for open television.

However, the text specifies that no individual may simultaneously hold, either wholly or partially, a license for providing nationwide satellite or cable subscription television services and licenses for providing open broadcasting services, or any other pay-TV licenses.