The new law on the simplification of procedures for telecommunications infrastructure in El Salvador

Infrastructure is the backbone of the digital age. In the telecommunications sector, the ability to deploy passive infrastructure — such as towers, masts, and conduits — efficiently and at scale is a determining factor for economic growth and digital inclusion. Historically, this process has been hampered by regulatory fragmentation and bureaucracy, which has slowed the deployment of broadband networks in El Salvador. However, a recent and bold legislative reform promises to completely change this landscape.

In a strategic move to revitalise the sector, the Legislative Assembly of El Salvador approved the Decree of Special Provisions for the Simplification of Procedures for Passive Infrastructure for Public Telecommunications Service. This regulation, which comes into immediate effect, represents a paradigm shift in how the installation of telecommunications infrastructure is managed in the country.

Centralisation as the key to efficiency

The reform introduces a fundamental principle: the centralisation of competencies. Previously, operators and infrastructure providers had to navigate a labyrinth of permits in each of the 262 municipalities of the country, each with its own requirements, fees, and response times. This process was not only costly and prolonged but also generated enormous legal uncertainty for investments.

The new decree ends this complexity by granting the Ministry of Housing exclusive competence for the authorisation of the construction and installation of passive infrastructure. This means that, from now on, a single permit is sufficient to operate at the national level. The implications of this measure are profound:

• Reduction of Timelines and Costs: By eliminating the need for multiple municipal procedures, deployment times are significantly shortened and operational and management costs are reduced.
• Legal Certainty: Centralisation under a single authority creates a clearer and more predictable regulatory framework, which encourages long-term investment in the sector.
• Unified National Application: The new law has effect throughout Salvadoran territory and prevails over any municipal regulation that contradicts it. This creates a homogeneous standard that benefits all companies in the sector.

Prohibition of additional charges and direct oversight

Another crucial point of the reform is the express prohibition for municipalities to impose fees, charges or special contributions for the installation of this infrastructure, with the only exception being that the works are located on municipal property. This provision eliminates a significant source of economic uncertainty for operators and fosters a more competitive environment.

The regulation also empowers the Ministry of Housing with direct oversight of the works. This includes the authority to conduct inspections, suspend or demolish works carried out without the necessary permit, and impose fines that can amount to 10% of the value of the land and the work. This robust oversight is essential to ensure compliance with construction regulations and territorial planning.

What does this mean for your business?

This new regulation is not just an administrative simplification; it is an invitation to expansion and modernisation. For telecommunications operators, infrastructure providers, and companies looking to improve their connectivity, this is the time to review their strategies and take advantage of this legal framework.