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The Ministry of Transport and Communications (MTC) decided not to renew at Telefónica the duration of the concession contracts signed in 1994 for local fixed telephony (subscribers and public telephones) and national and international long-distance operator.
For non-compliance
The MTC explained that the decision is based on the assessment of company violations issued by Osiptel sectoral regulations and laws of Peru, as established in the concession contracts. As has been pointed out, these concession contracts were the product of a privatization process involving the ex CPT S.A. and the former ENTEL PERU S.A.
The Ministry's statement indicated that on the basis of these contracts the duration of the concessions was renewed up to three times (for different durations). At the first progressive renewal of these contracts, five additional years were granted, calculated on the basis of June 27, 2014; Second renewal, an additional period of four years and two months from June 27, 2019; and finally, the third renewal was granted for four years and three months, starting from August 27, 2023.
"In this last and fourth renewal application, having exceeded the limit of 80% of violations of sectoral regulations and laws of Peru during the evaluation period – from January 1, 2009 to June 27, 2014 – it is not necessary to grant an additional duration"he said.
Do not affect services
MTC has assured that current users of fixed local telephone service and support service will not be affected by the continuity of service obligations as the company maintains 11 other concessions allowing it to continue providing services in the country. In addition to the regional broadband project – Lambayeque, which will benefit more than 234,000 inhabitants with broadband Internet.
"With this measure, the citizens will not be affected because Telefónica del Perú must continue to provide services for a maximum of three years after its last renewal, it is November 27, 2027," the document said.
Telefónica's answer
Spanish society claimed to be in disagreement with the decision of the Peruvian State and that "its contribution to telecommunications has not been considered".
"In particular with the methodology used that does not take into account our contribution to the country's telecommunications development and which is unprecedented at the international level"Said Mario Coronado, director of regulation of Telefónica del Perú.
He also indicated that during the renovation process, there would have been changes to the rules of the game that will affect future processes of renewal of concession contracts in the industry.
The process
Over the 20 years possible to renew the concession, MTC granted Telefónica del Perú 13 years and 5 months in total.
The company invested more than 30 billion US dollars in the deployment of infrastructure nationwide since arriving in Peru 24 years ago.
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