During the last decades, the telecommunications sector has been one of the most dynamic sectors of the Dominican economy. The General Telecommunications Law provides the framework for a modernized telecommunications industry, adapting it to the parameters established by international organizations such as the World Trade Organization (WTO) and the International Union for Telecommunications (UIT). Dominican law is complemented by a constant work lNDOTEL, regulatory body of the sector, in the development of regulations which are subject to prior consultation with industry players.

The telecommunications sector is one of the main recipients of foreign direct investment, to the extent that there are no restrictions as to the nationality of capital, except for public broadcasting in which Dominican control capital is required. It is required that the licensee companies be incorporated in Dominican Republic and the Dominican Government is currently not participating in the sector.

Telecommunication services may be offered only after obtaining a license from lNDOTEL; which is granted by public tender. Once operations begin, companies are free to set their prices, although lNDOTEL can intervene when it determines that there is abuse of dominant position. Interconnection costs are also freely set and INDOTEL may also intervene when there is no consensus between the parties, which may order the unbundling the local loop if necessary.

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