We tell you about the latest developments and what's next in telecommunications, cybersecurity, personal data, fintech, and intellectual property.

01 - 15 March 2022

Telecoms

New Subtel’s team. On March 11, the new Undersecretary of Telecommunications, Claudio Araya San Martín, took office, accompanied by his advisory and executive team. The cabinet team is composed of Manuel Luna (chief of staff) and advisors Adolfo Oliva and Felipe Pavez. The executive team is composed of Marco Silva Sandoval (head of the Legal Division), Virginia Reginato (head of the Regulatory Policy and Studies Division), Marcelo Rutte (head of the Telecommunications Development Fund (FDT) Management Division), Raúl Domínguez (head of the Fiscalization Division), Jacob Sandoval (head of the Administration and Finance Division) and Francisco Miranda (deputy head of the Concessions Division). Undersecretary Araya and his team will be responsible for completing the deployment of the 5G network and the National Optical Fiber project, implementing the state-owned telecommunications network company and the National Connectivity Registry. They will also be in charge of the modification of the General Telecommunications Law to transform the FDT into a demand subsidy mechanism and reviewing the concession allocation processes, among other initiatives included in the Government Plan.

Connectivity in border zones. On March 8, Subtel launched a public tender to subsidize the deployment of fiber optic cables in 17 border towns located in the central and northern areas of the country. Of these, 7 correspond to border crossings or complexes. The total amount of the subsidy for the winning companies is USD 15.000.000. This initiative complements the tender already awarded to Telefónica del Sur in August 2021, which is committed to deploy optical infrastructure in ten border towns located in the regions of Los Ríos, Los Lagos, Aysén and Magallanes. Details of the project can be found at the following link: https://www.subtel.gob.cl/subtel-lanza-concurso-publico-para-conectar-pasos-fronterizos-en-zona-norte-y-centro-del-pais/.

Initiatives with no new developments: (i) the bill that allows users to terminate telecommunications service contracts at the time of requesting the portability of their telephone number; (ii) the bill on internet in education; (iii) the new critical infrastructure regulation; (iv) the prepaid telephone registration bill; (v) the fundamental technical plan implementing the "chao cables law"; (vi) the election of the Independent Technical Body; (vii) the bill that creates the Public Enterprises Service (Servicio de Empresas Públicas); (viii) the bill that recognizes the internet as a public service.

Cybersecurity

Draft framework law on cybersecurity. Last week, the long-awaited cybersecurity framework bill entered the Senate, which aims to establish a framework for the prevention and resolution of cybersecurity incidents occurring in critical information infrastructures, whether publicly or privately owned. Regarding the institutional framework, the initiative creates the National Cybersecurity Agency and the Computer Security Incident Response Teams (CSIRTs). We are waiting for the important discussion that will be hold by the Senate’s Defence Committee.

Cybercrime bill. After a new discussion, on March 7, the Mixed Commission dispatched the report of the bill that establishes rules on computer crimes, repeals law No. 19.223 and modifies other legal bodies in order to adapt them to the Budapest Convention (bulletin No. 12192-25). The deputies and senators of the instance decided to eliminate the regulation of ethical hacking and maintain the need for a prior court order for the Public Prosecutor's Office to obtain specific personal data processed by telecommunications companies. The report with the consensus legal text has already been voted favorably by the Senate, so all that remains is the pronouncement in favor of the Chamber of Deputies. Once these procedures are completed, the bill will bw ready to be enacted and published as a law of the Republic.

Critical infrastructure and resilience. The bill that declares November of each year as the National Critical Information Infrastructure and Resilience Month (bulletin No. 14732-02) has not moved.

Data Protection

Persona data. The current Minister of the Segpres, Giorgio Jackson, committed the support of the current Government to the bill that regulates the protection and treatment of personal data and creates the Personal Data Protection Agency (Consolidated Bulletins No. 11092-07 and No. 11144-07). This commitment should materialize in the next few days by means of the urgency that the Executive assigns to the legal initiative, which is in its second constitutional procedure, filed in the Constitution Committee of the Chamber of Deputies for its first report and, subsequently, to be studied by the Finance Committee.

Fundamental Rights. The Fundamental Rights Commission of the Constitutional Convention is still in the process of approving the initiative that enshrines the right to privacy, information self-determination and computer security as part of the catalogue of constitutional guarantees. The initiative proposed by the Centro de Estudios en Derecho Informático of the Universidad de Chile received 18.282 votes from citizen support.

Neuro-rights. On March 1, the Executive gave urgency to the bill on the protection of neuro-rights and mental integrity, and the development of research and neurotechnologies (bulletin No. 13828-19). It is currently in the Science Commission of the Chamber of Deputies.

Digital platforms. The bills that regulate digital platforms (bulletin No. 14561-19 and bulletin No. 14785-24) have not had new advances in their respective chambers, specifically the Future Challenges Commission of the Senate and the Culture Commission of the Chamber of Deputies. The initiatives are in the first constitutional procedure.

Fintech

Fintech Law. On March 1st, the bill that seeks to promote competition and inclusion of financial services provided through innovation and technology (bulletin No. 14570-05), which is in its second constitutional procedure, was given urgency. The Senate Finance Committee has continued to receive presentations from specialists and interested parties, including the FinteChile Association.

Consolidated Debt Register. The Economy Committee of the Chamber of Deputies is in charge of the study of the bill that creates a Consolidated Debt Registry (bulletin No. 14743-03), an initiative that has not had any new movements. The purpose of this bill is to provide the financial system with complete and integrated information on the debt of individuals and companies, as well as to collaborate in facing the problems of over-indebtedness. With this, new rights are given to debtors, favouring good payers through lower rates. Additionally, the project encourages competition and financial innovation by allowing Fintech companies to access, with the consent of customers, to the information of the Consolidated Debt Registry.

Intellectual Property

Technological protection measures. As of today, there has been no news on the bill that amends Law No. 17.336, on intellectual property, in order to regulate technological protection measures (Bulletin No. 14767-03). The Economy Committee of the Chamber of Deputies referred the bill for general consideration.

Industrial property regulations. Law No. 21,355 (short INAPI law), which aims to modify the industrial property regulations to promote innovation and protect the rights of INAPI's users, will enter into force once its regulations are published in the Official Gazette. Currently, the supreme decree approving the regulation is in the process of being acknowledged by the Comptroller General of the Republic and has not been published in the Official Gazette.

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_{The regulatory and public policy area of the Technology and Telecommunications Group of Dentons Chile monitors, week by week, the main bills, regulations and technical standards that affect the digital connectivity ecosystem. The Legal Tech Newsletter is published every two weeks. If you want to know more about these topics or others of your interest, please feel free to contact us.}

_{Contact: alberto.jara@dentons.com}