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The National Telecommunication Commission – CONATEL – created by Act 642/1995 is the regulatingagency for telecommunication services. It may be said that the sector is open to competition, exceptfor fixed lines and international carrier services, which remains under State monopoly.CONATEL processes all concession, license and permit applications and it is in charge of developing,implementing and enforcing the regulatory policy, analyzing and proposing tariff regimes, approvingtechnical standards, assessing conformity of equipment, monitoring quality of service, and preventinganti-competitive practices among other duties. Telecommunication services are classified into twobasic services, broadcasting and value-added services. Basic services may be rendered under aconcession granted by the State, which must be approved by Congress. Broadcasting and value-addedservices may be rendered under a license or permit. Concessions are granted for a period of 20 yearsand may be renewed in accordance with the terms and conditions of the contract. Broadcastinglicenses are granted for a period of 10 years, and may be renewed for an additional period. All otherservices may be licensed for a period of five years and are renewable upon Licensee’s request.5. WATER SUPPLY AND SEWAGEAct 1614/2000 established the framework for water supply and sewage services and created theregulatory agency – the Regulating Entity for Sanitary Services – ERSSAN. ERSSAN is in charge ofdeveloping regulatory standards for suppliers and users, preventing anti-competitive practices,supervising investment and tariffs and, in general, enforcing applicable legislation. Concessions may begranted for up to 30 years, whereas permits for a maximum of 2000 individual connections may begranted for a 10-year-term.The sector must rely on foreign investment for expansion in order to level the average impact of othercountries in the region.6. ELECTRICITYParaguay has abundant hydroelectric energy provided by the Acaray (national), Itaipú (binational) andYacyretá (binational) power stations, with countrywide supply networks.Reforms are being proposed to unbundle the sector and allow private investment in hydroelectricityand thermal power.67. NATURAL RESOURCESBerkemeyer Attorneys and Counselors | Asunción - Paraguay