RESOLUTION OF 2019 3121

(November 28)

Official Gazette No. 51,151 of November 28, 2019

MINISTRY OF INFORMATION TECHNOLOGY AND COMMUNICATIONS Whereby amending Article 7 o., Article twenty-one

and Article 2. 3 of Resolution 3078

2019.

DEPUTY MINISTER OF CONNECTIVITY AND SCANNING FUNCTIONS MANAGER CLEARANCE MINISTER OF

INFORMATION TECHNOLOGY AND COMMUNICATIONS,

in exercise of its legal powers and in particular those conferred by Article 18 Act 1341 of 2009; the section one Chapter 1,

Title 2, Part 2, Book 2, of the Decree 1078 of 2015; the articles the 2nd Y the 5th Decree 1414 of 2017, Decree 2004 of

the November 1, 2019, and WHEREAS:

The Ministry of Information Technology and Communications issued Resolution

3078 2019 "By which opening is declared and the requirements, conditions and procedures are established to
participate in the objective selection process through the auction mechanism for permissions granted for use of the
radio spectrum nationwide in the bands 700 MHz, 1900 MHz and 2500 MHz ";

That since the issuance of the resolution, have received comments from interested aimed at determining whether the
setting up of subsidiaries by those companies not domiciled in Colombia, or if possible change the composition of
capital of the company formed in is possible compliance with the obligations arising from the auction;

The current regulation does not provide for any restriction on the change in the composition of capital Providers
Telecommunications Networks and Services (PRST), other than those derived from the application of the rules on
competition advocacy. Additionally, the incorporation of subsidiaries mechanism can be considered to meet the
obligations of the auction, provided that this basic guarantees offered to reduce the Ministry report nor less information
than required during the process;

That according to Article 260 of the Commercial Code, a company will be subordinated or controlled when its
decision-making powers be subject to the will of another or others who will be your parent or controlling, either directly,
in which case that it will be referred subsidiary or the tender or through subordinate matrix, in which case it is called
subsidiary; The literal a) of Article 2. 3 of the resolution defines the obligations of technological update that must be
assumed by the allottees permits use of the radio spectrum in the 700 MHz band, in order to achieve the objective of
allocating permission for use of this scarce resource the nation will contribute to improving the quality of
provision of public mobile telecommunications service as a basis to popularize the digital environment of the country,
coverage of mobile services 4G and improve the quality of life of all Colombians, especially those living in rural and
remote areas of the country, and those in poverty and vulnerability;

That these objectives can be achieved by two (2) alternative mechanisms for technological upgrading, namely by
footprint or base station coverage exists, something that was mentioned by several interested in your comments to the
above resolution. Both mechanisms allow the fulfillment of public policy objectives associated with conditions defined
technological modernization, and are related to specific conditions of the design and management of the network of
each provider networks and telecommunications services, which obey own technical conditions of allottees. Therefore,
as a guarantee of the principle of technological neutrality as defined in Article the 6th Law 1341 of 2009 and in
accordance with the principles of equality, efficiency, economy, and impartiality governing the administrative function, in
accordance with Article 209 of the Constitution, the literal must be modified a) of Article 2. 3 Resolution 3078, 2019, in
the sense of incorporating the mechanism of technological upgrade existing base station as an alternative to the
mechanism coverage footprint; That paragraph 2 of that Article 2. 3 It provides that for verification of coverage the PRST
Assignee shall conduct site visit in order to determine that no operator offers any land mobile service IMT in the resort,
respect, several interested parties have requested the Ministry include additional details, for the purposes to have more
certainty about the conditions for carrying out such a visit, from the above, in accordance with the principle of
effectiveness of the administrative proceedings, the said paragraph will be supplemented to provide clarity on the
conditions mentioned; In light of the foregoing, DECIDES:

ARTICLE 1o. Article 7. MODIFICATION OF THE RESOLUTION 3078 2019. To amend paragraph 7.2 of Article the 7th Resolution
3078 of 2019, which will read:

7.2. Requirements for legal persons not domiciled in Colombia:

a) The legal persons foreign that do not have address or branch duly established and incorporated in Colombia must
attend the process by proxy, duly authorized to submit the request, sign the required guarantees, notified of
administrative acts issued during process, including the eventual award, and acting during the auction process;

b) undertake, if awarded the contract resulting from a permit to use radio spectrum to provide within fifteen (15)
business days following completion of the auction, an affiliate or subsidiary or establish a branch in Colombia society,
including principal activity is the provision of networks and / or telecommunications services in Colombia, whose
duration should not be less than that of the term of the permit use of the radio spectrum covered by Article twenty of
this resolution and two (2) years;

c) Commit to start the process of registration and incorporation into the National Register of ICT which Article fifteen Law
1341 of 2009, as amended by Article 12 Act 1978
2019, within fifteen (15) business days following the establishment of the branch, subsidiary or affiliate in Colombia. To
verify that condition, it must be provided or the certificate signed by the proxy document stating commitment to start
the registration process referred;

d) not meet the legal entity, its legal representatives, board members or board directors or partners, except in open
corporations, disqualified on grounds of disability or prohibition of constitutional or legal order, in accordance with the
rules governing the matter . If the disability or befalls ban during the process, this situation must be reported to the
Ministry and it is understood that the application form does not meet the conditions and waiver of participation, without
prejudice to the legal consequences applicable, according to the grounds for disqualification or prohibition of
constitutional or legal order it to be configured;

e) Have experience, or any of its members, not less than four (4) years in the provision of networks and / or
telecommunications services, the date of filing of the application. This experience is evidenced by the certification signed
by the legal representative of the company concerned or his agent stating the total time of the certified experience, type
of service and coverage area. Such certification means rendered under gravity of the oath.

ARTICLE 2o. MODIFICATION OF ARTICLE 21 OF RESOLUTION 3078

2019. Modify the second paragraph of Article twenty-one Resolution 3078 of 2019, which will read:

Legal persons not domiciled in Colombia must form a company, a subsidiary or subordinate, or a branch in Colombia to
include in its corporate purpose principally engaged in the provision of networks and / or telecommunications services in
Colombian territory and register with the Chamber of respective trade, within fifteen (15) business days following
completion of the auction, a requirement that must be credited with the respective certificate of the Chamber of
commerce and must then complete the National Register of ICT in the terms indicated in the paragraph above. In this
case, within fifteen (15) days to develop the process of registration and incorporation into the National Register of ICT
which Article fifteen Law 1341 of 2009, as amended by Article 12 Act 1978 of 2019, will run from the firmness of the
registration of the new company in the respective trade chamber. In the event of becoming a subordinate society, and
within the same deadline for the establishment of the company, they shall be provided the same documents to which the
article refers 8 or. and numerals 1, 2, 5 and 9 of the article 9 or. of this resolution against companies with which, jointly, or
through which, it is the company incorporated controls.

ARTICLE 3. MODIFICATION OF ARTICLE 23 OF RESOLUTION 3078

2019. Changing the literal a) and paragraph 2 of Article 2. 3 Resolution 3078 of 2019, which will read:

"A) update technology networks mobile service: network providers and telecommunications services that are assignees
permits use of the radio spectrum in the 700 MHz band as a result of the auction this must guarantee the technological
modernization of its mobile telecommunications networks, within a maximum period
four (4) years from the date of finality of the administrative act of assigning permission to use the radio
spectrum.

Technological upgrading their networks understood as providing technologies offering theoretical peak rates in any

frequency band according to Table 1. Table 1. theoretical peak speeds

Spectrum allocated in the auction process 700 MHz Downlink Peak (Mbps) Peak Uplink
(Mbps)
A block 2x5 MHz 36.7 18.3
A block 2x10 MHz 73.7 36.7
2x10 MHz block and a block of 2x5 MHz 110.1 55.1
Two blocks of 2x10 MHz 149.8 75.4

The update should be brought forward by one of the following two (2) mechanisms, which may be chosen by the
assignee of the permit use of the radio spectrum, who must report in writing to the Ministry together with a detailed plan
and schedule work, which described in this article. Under no circumstances may be mixed two (2) mechanisms. Ie, the
assignee must choose one (1) single mechanism that applies to all municipalities with fewer than 100,000 inhabitants
that are part of this obligation.

a.1. Alternative 1 mechanism - matching footprint coverage: in municipalities of less than 100,000 inhabitants ( 5) in which,
for cutting the second quarter (2T) 2019, the PRST resulting assignee of the 700 MHz band has been reported 2G
coverage in GSM or 3G UMTS technology, HSPA or HSPA + or 4G LTE, speeds theoretical peak lower than those
referenced in the table above. For this update should be considered footprint coverage is defined with a signal level
"Good" or "covered" according to the legend that accompanies the maps reported in compliance with the obligation
under Article 5.1.3.10 . "MAPPING REPORT COVERAGE" Resolution CRC 5050 2016, or that norm that modify, replace
or add to. Footprint coverage obtained as a result of technological upgrading, should be at least the union of all the
contours of 2G, 3G and 4G reported each PRST, with a signal level "Good" or "cover" for the second quarter ( Q2) of
2019, in each of the municipalities under this obligation. Said tread should have a level of RSRP of at least -100 dBm
and the peak velocities theoretical referenced in Table 1. respect the minimum cumulative annual goals explained in this
article.

a.2. Alternative 2 -Update technological mechanism by existing base station: The technology upgrade will operate in
municipalities of less than 100,000 inhabitants ( 6) in which, to cutting the second quarter (Q2) of 2019, the PRST
resulting assignee of the 700 MHz band has indicated the existence of base stations are used for the provision of
mobile terrestrial IMT in reporting formats inventory sites (format 7) and inventory of sectors of base stations (format 8),
defined in Resolution 3484 2012 issued by the Ministry. Existing base stations to be updated in each municipality will be
where the Assignee has reported any of the following coverages:

i. 2G only on GSM technology,

ii. only 3G technology UMTS, HSPA or HSPA +,

iii. only 2G GSM and 3G UMTS, HSPA or HSPA + technology;

iv. 2G technology GSM, UMTS 3G technology, HSPA or HSPA +, LTE and 4G theoretical peak rates below Table 1.

v. 4G 2G GSM and LTE technology with theoretical peak rates below Table 1.

saw. 3G technology UMTS, HSPA or HSPA +, LTE and 4G theoretical peak rates below Table 1.

vii. only 4G LTE with theoretical peak speeds below Table 1. For this technological upgrade, the assignee shall ensure
that, in all seasons referred to the previous paragraph, for the municipalities of the listed conditions, have installed, and
in operation, technology radio access any spectrum band that is assigned, with peak velocities theoretical mentioned in
Table 1 of this article and with a level of RSRP of at the least -100 dBm at a minimum radius of 2 km around each
station subject to this update. For kilometers around where will verify coverage areas that the topography of the terrain
features natural obstacles excepted. To fulfill this obligation, the assignee shall submit to the Ministry,

minimum cumulative annual targets: The minimum accumulated override it meet goals in any of the alternatives chosen
by the Assignee (a.1 alternative or alternative 2), counting the time in years from the date of finality of the administrative
act allocation permission to use the radio spectrum in the 700 MHz band auction result present, are the following:

- 20% of the total municipalities with fewer than 100,000 inhabitants in which it has an obligation to technological
upgrading in the first year of validity of the permit.

- 50% of the total municipalities with fewer than 100,000 inhabitants in which it has an obligation to technological
upgrading, in the second year of validity of the permit.

- 80% of the total municipalities with fewer than 100,000 inhabitants in which it has an obligation to technological
upgrading in the third year of validity of the permit.

- 100% of the total municipalities with fewer than 100,000 inhabitants in which it has an obligation to technological
upgrading, in the fourth year of validity of the permit.

Given the geographical conditions of the archipelago department of San Andrés,

Providencia and Santa Catalina, network providers and telecommunications services that are assignees permits use
of the radio spectrum in the 700 MHz band as a result of the auction this should make technological upgrading
networks mobile service that deals paragraph a) of this Article, regardless of the mechanism chosen for this
(alternative or alternative a.1 a.2 of the present literal) within the first year of validity of the permit.

To fulfill this obligation, the assignee shall submit to the Ministry, within ninety (90) calendar days following the firmness
of the administrative act of assigning permission to use the radio spectrum result of this process, a detailed plan and
schedule work, which enter dates of technological update of each of the municipalities with population less than 100,000
inhabitants which in Q2 2019 the technology deployed did not offer peak speeds theoretical referenced in Table 1. in
addition, the assignee must submit at the least one (1) half-yearly report on the state of compliance with this obligation
is described ".

"Paragraph 2o. The deployment referred to in paragraph b) of this Article shall be made in locations that do not have
mobile coverage terrestrial IMT. Each Assignee PRST deliver, together with a detailed plan and schedule work, a
statement under oath in certifying whether the date or not cover any IMT service in the towns included in administrative
acts individuals that in article 13 of this resolution. For verification of coverage, the Assignee PRST should perform on-site
visit in order to determine that no operator offers any land mobile service IMT in the town, considering all of the area
formed from a point comprised within the locality to minimum two (2) kilometers around. To determine that no IMT
services in the city can be made to either the least 10 situ measurements separated by at the least 200 meters and fall
within the area described, in which it is verified that all the following conditions are met: (i) 2G RxLev levels are lower
than -90dBm in to the least 90% of the measurements taken and; (Ii) levels for 3G RSCP -98 dBm are lower than in at
the least 90% of the measurements taken;

ARTICLE 4. This resolution shall take effect upon its publication. PUBLISHED AND

ENFORCED.

Given in Bogotá, DC, on November 28, 2019.

Deputy Minister of Connectivity and Digitization Manager functions the Office of the Minister of Information Technology

and Communications, Ivan Antonio Mantilla Gaviria. NOTES TO THE END:

5. To identify the municipalities of less than 100,000 inhabitants, should use the information of the population for the
year 2019, which is published by DANE on your page, the day of publication of this resolution.
6. To identify the municipalities of less than 100,000 inhabitants, should use the information of the population for the
year 2019, which is published by DANE on your page, the day of publication of this resolution.

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Last updated: December 31, 2019