Superintendencia de Industria y Comercio

The Communications Regulation Commission (CRC, by its Spanish acronyms) of Colombia requested the Superintendence of Industry and Commerce (SIC, in its Spanish acronyms) an advocacy concept regarding the resolution project simplifying the current accounting segregation model.

The proposed model aims to reduce the regulation burden on the Network and Telecommunications Service Suppliers (PRST, in its Spanish acronyms) and the Cable Television by Subscription Operators (OTVS, in its Spanish acronyms), by adjusting the model to their current accounting structure. Likewise, the model settles the obligation of classifying the revenue flows, costs, expenses, and assets for each service. All these flows together facilitate the disaggregation and identification of the cost, revenue, and value for each wholesale or retail service, which in turn will help to determine the unit value for each service. It is worth pointing out, that this project adds the long distance and bearer services to the wholesale services. 

Moreover, the project proposes to require the PRSTs and the OTVSs the submission of support information for the Detailed Accounting Segregation Model as well as for the Simplified Accounting Segregation Model.

The information collected will allow the CRC to reduce the information asymmetry and will facilitate information comparison among the different PRSTs and/or OTVSs. This would contribute to data and result analysis, helping to highlight the existence of possible market failures and to identify anticompetitive conducts such as the cross-subsidies. 

The SIC held that the project do not pose a risk for the free economic competition.