Panama VoIP Regulations

Panama was the first country to announce a public all out ban on VoIP services back in 2002. The block was enforced amid complaints from Cable and Wireless Panama that they were losing revenue to people using VoIP to make telephone calls. Cable and Wireless Panama had a monopoly on telecommunications in the country at the time.

Cable and Wireless Panama was a joint venture between the Panama government and the UK Company Cable and Wireless. Cable and Wireless stated that the “decision by Panama telephone regulators is aimed at the unlawful offering of voice telephony services in Panama from unlicensed operators”.

The ban was enforced by blocking certain ports which were used for VoIP traffic. However this method was ultimately flawed and was not effective in preventing all VoIP calls as simple work arounds were possible. Skype, the world leading VoIP service was exceptionally difficult to prevent due to the nature of how it encrypts and transports the VoIP data making it hard to identify.

The Public Services Regulator in Panama held the mandate for all IPSs to block ports identified with VoIP traffic until the end of the monopoly of Cable and Wireless Panama in 2003. Cable and Wireless however are still been continually criticized for unethical business practices regarding their attitude to VoIP services in panama.

In January 2004 Panama set to introduce changes to telecommunication tax laws that would now include VoIP calls as taxable since the Panama government identified a potential loss of tax revenue to people using VoIP alternatives.

Further Reading
Panama Ban VoIP - 2002
Panama introduce VoIP Tax - 2004
Criticisms of Cable & Wireless Panama - 2006