It is reported that the telecommunications sector is open to competition, except for fixed lines and international carrier services, which remain under State monopoly with the "Compañía Paraguaya de Comunicaciones". This is despite full foreign ownership being allowed in the telecommunications sector. In December 2001, as part of the process of “Reorganization of decentralized Public Entities, of reform and modernization of Central Administration Organizations”, provided for by Law 1615/2000, the National Telecommunications Administration (ANTELCO) changed its name to Compañía Paraguaya de Comunicaciones Sociedad Anónima (Copaco S. A.) becoming a 100% state-owned company.

"Compañía Paraguaya de Comunicaciones" is the leading fixed telephony operator and is fully state-owned. It is reported that in December 2001, as part of the process of “Reorganization of decentralized Public Entities, of reform and modernization of Central Administration Organizations”, provided for by Law 1615/2000, the National Telecommunications Administration (ANTELCO) changed its name to Compañía Paraguaya de Comunicaciones Sociedad Anónima (Copaco S. A.) becoming a 100% state-owned company.

It is reported that Paraguay does not mandate functional or accounting separation for operators with significant market power (SMP) in the telecom market.

Law No. 642 regulates the concession, license or authorisation to provide telecommunication services. These will be subject to the payment of a fee, which must be verified within 60 days of obtaining them or renewing them only once in each period. For renewals, the fee payment will be determined on the basis of extensions or new investments. According to Art. 70 of the law, the commercial exploitation of the services will be subject to the payment of an annual fee of up to 1% of the gross income of the provider. In addition, according to Art. 64 of Decree No. 14,135, any foreign company that wants to provide telecommunication service in the country shall be domiciled or establish a representative office in Paraguay.

Paraguay has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

According to Law No. 642 of Telecommunications, the National Telecommunications Commission (CONATEL), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

Paraguay has joined agreements with binding commitments to open transfers of data across borders. According to the Art. 7.2 of the Mercosur Agreement on E-Commerce signed by Paraguay, each Party shall permit the cross-border transfer of information when the purpose of such transfer is to realise the commercial activities of a person of a Party. According to the Art. 7.11 of the Free Trade Agreement between Chile and Paraguay, each Party shall permit the cross-border transfer of information by electronic means, where such activity is for the conduct of the business of a person of a Party.

Paraguay lacks a comprehensive data protection framework, although a legislative proposal is currently underway. Law No. 6534 on the Protection of Personal Credit Data (Ley No. 6534 de Protección de Datos Personales Crediticios) provides the protection of anyone's credit data, regardless of their nationality, residence or place of residence, regulating the activities of collecting and obtaining credit information data, as well as the composition, organisation, operation, rights, obligations and termination of legal persons involved in obtaining and providing credit information, so as to safeguard basic rights, privacy, information self-determination, freedom, security and fair treatment.

It is reported that the telecommunications sector is open to competition, except for fixed lines and international carrier services, which remain under State monopoly with the "Compañía Paraguaya de Comunicaciones". This is despite full foreign ownership being allowed in the telecommunications sector.

Paraguay is not a party to the Patent Cooperation Treaty (PCT).

Paraguay has a copyright regime under the Law No. 1328. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Arts. 38-46 list exceptions, including reproduction by reprographic means for teaching or examination purposes in educational institutions and reproduction of a work for judicial or administrative proceedings, provided such reproduction is justified by the intended purpose, among others.

Copyright is not adequately enforced online in Paraguay. The country reportedly failed to apply sufficient sanctions to deter future acts of infringement or to ensure that government institutions use properly licensed software.

Paraguay has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

Paraguay has ratified the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty.