34 remained of the 20 years that began on the date that Decree No. 1,577 took effect; in other words, until May 27, 2007. Regarding the preferential right claimed by RCTV, Minister Chacón Escamillo stated that no such guarantee was established in either the Constitution of the Republic or the LOTEL and that, even in those areas in which a preferential right existed, it could not be exercised or opposed in relation to the owner of the asset to which the right attached – in this case, the electromagnetic spectrum belonged to the State of Venezuela, which had decided to use and exploit the portion once granted to RCTV after May 27, 2007. He also asserted that the transformation application submitted by RCTV in 2002 had become devoid of purpose following the State’s sovereign decision, based on the National Telecommunications Plan to reserve to itself the use and exploitation of that portion of the electromagnetic spectrum.138 According to Communication No. 0424, the purpose of the Venezuelan Government’s decision was “to permit the democratization of the electromagnetic spectrum and make it available for a wide range of messages and content” by creating a freeto-air public television station.139 92. Communication No. 0424 also indicated that RCTV did not have an acquired right to the automatic renewal of its concession, because: (i) this right was not established in the Constitution of the Republic; (ii) concessions were a privilege granted for a limited time; (iii) it was a general principle of law that privileges must be interpreted restrictively, and (iv) automatic renewal would be detrimental to the principle that the electromagnetic spectrum, as a public asset, should be open to as wide a cross-section of uses and users as possible.140 The Communication explained that the State had “decided to reserve to itself the use and exploitation of that portion of the electromagnetic spectrum,” “to permit the democratization of the electromagnetic spectrum and make it available to a wide range of messages and content,” in compliance with the National Telecommunications Plan 141 and article 108 of the Constitution.142 Lastly, regarding RCTV’s request to produce evidence, Minister Chacón Escamillo considered it inadmissible, because: (i) the fact that RCTV’s concession had not been transformed had not been contested, and (ii) the decision not to renew the RCTV concession was not a penalty, nor the result of any penalty imposed.143 93. Subsequently, Minister Chacón Escamillo issued Resolution No. 002 of March 28, 2007, extinguishing the corresponding administrative procedure. Taking into account the arguments set out in Communication No. 0424, this resolution decided: To declare terminated the administrative procedure opened following the request filed by Radio Caracas Televisión […] concerning the transformation of the concession, owing to the extinguishment of the said Cf. Communication No. 0424 issued by the Ministry of the People’s Power for Telecommunications and Information Technology of March 28, 2007 (evidence file, folio 3099). 138 Cf. Communication No. 0424 issued by the Ministry of the People’s Power for Telecommunications and Information Technology of March 28, 2007 (evidence file, folio 3103). 139 Communication No. 0424 issued by the Ministry of the People’s Power for Telecommunications and Information Technology of March 28, 2007 (evidence file, folio 3100). 140 See Ministry of the People’s Power for Science, Technology and Intermediate Industries, National Telecommunications, Information Technology and Postal Services Plan (PNTI) and SP 2007-2013 (merits file, folios 845 to 866). The objectives of this plan included: “5.1.2 Promote the growth of public radio and television” and “5.1.3 Promote the deconcentration of media ownership.” 142 Article 108 of the Constitution of the Bolivarian Republic of Venezuela establishes: “Public and private social communications media outlets shall contribute to civic education. The State shall guarantee public radio and television services as well as library and information technology networks to allow universal access to information. Educational establishments must incorporate the knowledge and application of the new technologies, and innovation, in keeping with the requirements established by law.” Communication No. 0424 issued by the Ministry of the People’s Power for Telecommunications and Information Technology on March 28, 2007 (evidence file, folios 3102 and 3103). 143 Communication No. 0424 issued by the Ministry of the People’s Power for Telecommunications and Information Technology on March 28, 2007 (evidence file, folio 3095). 141

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