Telefónica regrets that Peru does not renew two concession contracts



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The multinational telecommunications Phone regretted that Peru had decided not to renew for the fourth time two telephony concessions The company had since 1994 and they expire in 2027.

The Director of Regulatory Affairs Peru phone, Mario Coronado, said in a statement that the company was "in disagreement" with the decision taken by the Ministry of Transport and Communications (MTC).

"We disagree with the methodology used, which does not take into account our contribution to the development of telecommunications in the country and which is unprecedented at the international level," said Coronado.

The executive stated that, during the renewal process, changes to the rules of the game would have had an impact on future processes for the renewal of concession contracts in the industry.

"This statement has implications beyond contracts subject to renewal and Peru Telephone. The lack of predictability can affect the climate that seeks to attract investment to reduce the infrastructure deficit, "he said.

In this sense, the company planned to evaluate the alternatives to ensure the "predictability" of the concession renewal processes.

History of the concession

Both contracts were awarded to Phone in 1994, the government had agreed to renew them gradually three times until November 2027, but had refused a fourth extension of validity requested since December 2013, while 13 years and 5 months of the 20 years of possible renewal had been covered, according to the company. .

The government's decision was based on a report by the Supervisory body for private investment in telecommunications (Osiptel) who warned that the company had exceeded the limit of 80% violations of sectoral regulations and laws Peruvian during the period evaluated, from January 1, 2009 to June 27, 2014.

However, Phone He clarified that the government's decision "does not affect the continuity of telecommunications services provided to its customers", the company having in Peru up to seventeen concession contracts for the provision of various services of public telecommunication.

"One of them is renovated until 2032 and allows us to provide fixed telephony services, which allows us to ensure our millions of customers that the decision of the MTC this will have no impact on the day-to-day use of its services, "said Coronado.

For its part, the Association for the Promotion of National Infrastructures (AFIN) Peru is now deeply concerned by this case, considering that the Ministry and Osiptel have misinterpreted the legal framework governing the renewal of concessions.

TO felt that the ministry's decision was a negative sign for a good investment climate and affected the efforts of the operating companies to narrow the digital divide in the country. (EFE)

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