Peru: Fourth mobile license to depend on prices and coverage

 24 March 2004 – According to a report by SABI, the Peruvian Ministry of Transport and Communications may issue a fourth mobile license based on who is most willing to commit to increased investment, expanded coverage and lower prices.

Deputy Minister, Juan Pacheco, noted that while previous licenses were issued to the highest bidder, the government may decide to grant the fourth license based on commitment to wider coverage or lower prices, or a combination of the two. The license will likely be issued soon, as the issue of competition in the mobile market is a priority for the Ministry.

Pacheco also noted that another way to increase competition in the telecom sector would be for the Organismo Supervisor de Inversion Privada en Telecomunicaciones (Osiptel) to more strictly regulate Telefonica Moviles, the dominant company in the sector, or to set prices in the mobile sector, where tariffs are currently only supervised.

Intelecon Research & Consultancy Ltd. 24/03/2004

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