| Peru: Committee Opposes BellSouth Buyout |
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| Friday, 28 January 2005 | |
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A congressional committee in Peru said that it approved a bill that could prevent Telefonica Moviles’ purchase of BellSouth Peru.
BellSouth has sold its Peruvian mobile operations to a unit of Telefonica, which will give it about 73% of the mobile phone market. Congress' Consumer Protection and Public Services Regulatory Agency Committee said that two articles of the nation's Constitution prohibit mergers or acquisitions that would give the new company a dominant market position that could limit competition. The committee said that the full Congress is expected to examine the bill when it reconvenes in March. Peru’s mobile telephony sector has expanded rapidly in the last ten years, growing to over 3 million subscribers. There are two other operators in the market – TIM Peru and Nextel. In addition, Peru's privatisation agency, ProInversion, is making progress on setting up a public auction of a fourth mobile telephony band. Intelecon Research & Consultancy Ltd. 28/01/2005 |