Internet use grows, investments do too

By Rosa Elena Di Martino, Berkemeyer Attorneys & Counselors

In October 2014, the National Telecommunications Commission (CONATEL) will change their traditional way of acting, calling a public auction the electromagnetic spectrum, to grant licenses for the provision of broadband Internet.

Paraguayan General Telecommunications Act, N° 642/1995 establishes, prior and indispensable for the provision of broadcasting services, the requirement of CONATEL´s approval and a license. This procedure cannot be altered, what will change will be only the way of access to licenses: they were always requested by the applicant but now, the Regulation Authority will launch a public auction where the best provider, technically and commercially, will be benefited.

What this auction intend to do is to expedite licensing, keeping Law 642/1995, as a base.

CONATEL said that international operators, not yet operating in the country, were very interested in investing and await the auction of the spectrum for the expansion of the Internet services.

The frequencies to be auctioned will be 1700-1900 MHz and 2600 MHz, in order to meet growing consumer data demand in Grand Asunción, densely saturated. The regulator is conducting studies to determine which of the two frequencies will first enter the auction.

The government decided to auction all available electromagnetic spectrum, because it plans to expand Internet services to the entire territory of the country.

This call will be open to mobile phone companies both national and international, seeking greater participation, transparency and benefits for the country and for the investors.