On Monday, April 24th, 2017, the new Decree No. 6999/2017 was published in the Official Gazette of the Republic of Paraguay, which establishes the new General Tariff Regulations (RGT) that was proposed by the National Telecommunications Commission (CONATEL). This decree totally repeals the previous general regulation that was approved by Decree No. 16.761 / 2002.

The new General Tariff Regulations (RGT) conceptualizes the tariff in its Article 3 using the following terms: "...is the price, whichever it may be, of a telecommunications service that the Provider Company applies to its respective subscribers and users for the services rendered or for the services to be rendered in cases of advance purchase of services..."

Another novelty in the current regulation is the inclusion of the competence of the National Telecommunications Commission (CONATEL[1]) in article 7 to control the evolution of the sector and carry out studies that are required to prevent possible anticompetitive and discriminatory behavior, as well as artificial lows or increases in prices and tariffs. When CONATEL identifies practices that restrict the competition, it will inform the National Competition Commission (CONACOM[2]) about these facts. If CONATEL observes significant market power (SMP[3]) by any of the operators in the sector, it will arrange its treatment in accordance to the law and the regulations.

In addition, the regulation establishes a catalog of major infringements - article 43 - and minor infractions - article 44 -, as well as its corresponding sanctions in article 46, which states that "...they shall be applied in accordance with the law…". Although the new regulation does not specify to which law it is related, we understand that the applicable law in this case would be Law No. 642/95 of Telecommunications.

One point to note is that if this legal reference refers to the Telecommunications Law, this could raise doubts regarding the sanctions applicable in case of the breach of provisions of the new General Tariff Regulations - Decree No. 6.999 / 2017-, since Law No. 642/95 enacts in articles 103 and 104 the major and minor infringements, with its corresponding sanctions in article 105.

In the attached file you will find a copy of the new Decree No. 6999/2017 with its corresponding Annex.