Countries › Panama › Guide › 12. Sectors › Telecommunications in Panama under Ley 31 de 1996: type A and type B concessions, 20 year terms and foreign ownership

Telecommunications in Panama under Ley 31 de 1996: type A and type B concessions, 20 year terms and foreign ownership

Last verified: 2026-10-29 · Status: Stable

Telecom services need a concession: type A for services with temporary exclusivity or a limited number of operators, granted by the Cabinet after public tender, and type B for all others, granted by ASEP without tender to anyone who meets the requirements. Concessions last 20 years and renewals cannot exceed that term. Majority foreign private ownership is allowed, but foreign governments and companies they control cannot operate or be majority owners.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Telecom concession term	20 yearsLey 31 de 1996 art. 23, as of 2026-10-29 · in force
Majority foreign private ownership of telecom operators	Allowed textLey 31 de 1996 art. 21, as of 2026-10-29 · in force
Foreign government control of telecom operators	Prohibited textLey 31 de 1996 art. 21, as of 2026-10-29 · in force

The rule

1. Concessions are granted as a rule in competition, except where technical or economic reasons justify temporary exclusivity or a limited number of concessionaires.Ley 31 de 8 de febrero de 1996, art. 20, 1996-02-08 official text · verified 2026-10-29

2. Majority foreign private ownership in telecom companies is authorised for purposes of the Constitution, but no foreign government, or company or consortium it controls or majority owns, may operate telecom services directly or through others, or be a direct or indirect majority shareholder of a telecom operator.Ley 31 de 1996, art. 21, 1996-02-08 official text · verified 2026-10-29

3. Type A concessions cover services that must be granted in temporary exclusivity or to a limited number of concessionaires; type B covers all other telecom services. The Cabinet grants type A on ASEP's favourable opinion; ASEP grants type B and sets their annual fee. Concessions last 20 years and renewals cannot exceed the same term.Ley 31 de 1996, arts. 22 and 23, 1996-02-08 official text · verified 2026-10-29

4. Type A concessions are awarded by the Cabinet through public tender with prequalification; type B concessions are granted without public tender to anyone meeting the rules.Ley 31 de 1996, arts. 27 and 36, 1996-02-08 official text · verified 2026-10-29

5. Charges include a concession price only for type A (to the Treasury), an annual fee only for type B concessions using radio spectrum, set by the amount of frequencies or bandwidth, and a regulation fee spread among concessionaires to cover the regulator's costs. Prices of services offered in competition are set by the concessionaires.Ley 31 de 1996, arts. 4 and 37, 1996-02-08 official text · verified 2026-10-29

Type	Grantor	Procedure	Charges
A (exclusive or limited number)	Consejo de Gabinete on ASEP opinion	Public tender	Concession price plus regulation fee
B (all other services)	ASEP	No tender, meet requirements	Annual spectrum fee if spectrum used, plus regulation fee

Concession types under Ley 31 de 1996.

Worked example

A US owned internet provider can hold 100 percent of a Panamanian type B concessionaire, with a 20 year term.
A company controlled by a foreign State owned telecom group could not be the majority owner of a Panamanian operator under art. 21.

Step by step

Ask ASEP which concession type applies to the service.
For type B, file the application with ASEP; for type A, follow the Cabinet's public tender.
If spectrum is needed, budget the annual spectrum fee and the regulation fee.
Plan renewal before the 20 year term ends.

Common traps

The State ownership bar looks through structures: indirect majority control by a foreign government is caught.
Ley 31 has been amended since 1996; check the current wording of articles outside those cited here before relying on them.

Sources

← Panama ship registry under Ley 57 de 2008: who can flag a vessel, provisional and permanent documents, cancellation and cabotageFisheries and aquaculture in Panama under Ley 204 de 2021: fishing licences, aquaculture concessions and fines →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.