Nicaragua Considers New Telecommunications Reform
By Guy José Bendaña-Guerrero & Asociados
In June 2023, Nicaragua's National Assembly saw the introduction of a bill aiming to revamp the country's telecommunications law. This proposed reform addressed has now been revamped with two key objectives: modernization and investment promotion.
The first goal of the bill, currently under discussion by the Congress, is focused on aligning Nicaragua's telecommunications legislation with the evolving technological landscape. The bill aims to bring the law in sync with the standards set by the International Telecommunication Union (ITU) for 4G technology. This would ensure compatibility with current telecommunication infrastructure and pave the way for future advancements.
The second objective is centered on fostering investment in Nicaragua's telecommunications sector.
The proposed reform explores options to attract investment. This potentially includes allowing virtual operators and companies that provide telecommunication services without owning physical infrastructure. Additionally, the bill outlines a framework for "regulatory sandboxes." These sandboxes are designated environments where businesses can test innovative telecommunications services with reduced regulatory burdens. By allowing such experimentation, Nicaragua could potentially become more attractive to companies developing cutting-edge technologies.
The bill also establishes an authorization scheme for operators to facilitate the entry of new competitors into the market.