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Peru: Telefonica to eliminate charge Print E-mail
Wednesday, 09 February 2005
Peru's largest fixed line operator Telefónica del Perú (TDP) intends to remove a charge on all local calls within six months, Edwin San Román, president of telecommunications regulator Osiptel said.

For most calling plans, TDP charges an additional minute per call as a fee for completing the call. The elimination of the charge offers a way for TDP to meet the quarterly price reduction target. Last September, Osiptel introduced annual productivity factors of 10.1% for local telephony and 7.8% for long distance.

"The company has proposed that it can eliminate the minute charged per call. In some plans the minute for connection is already eliminated and in the rest has been reduced. The company plans to reduce it progressively after implementing the productivity factor in the next six months," San Román said.

Osiptel also enacted a rule prohibiting Telefónica from using free minutes as a means of implementing the productivity factor. "TDP used to increase the amount of free minutes instead of reducing tariffs. But clients do not always use all their minutes available, consequently, this is not an effective reduction," San Román added.

Intelecon Research & Consultancy Ltd. 09/02/2005
Source: Business News America