| Talks between Peru’s government and Telefonica del Peru over fees and other issues could conclude by year-end, Prime Minister Jorge del Castillo said.
"We don't have a deadline, but I calculate that (they could end) in 60 days, by the end of the year maximum," del Castillo told the press.
In September, Congress voted to have telecom operators drop the basic monthly charge for fixed-line customers. The law was sent to President Alan Garcia for approval. Garcia then announced that the government and Telefonica would renegotiate the contract.
According to del Castillo, the talks are progressing well. The company is "renegotiating with good will. We have no problems on that front," he said.
Del Castillo noted that the government is concentrating on a range of issues rather than just the basic monthly charge. The issues include long distance rates, the accumulation of airtime on calling cards and the cost of public telephony. He added that the government's aim is to "preserve the principle of juridical stability" in order to ensure future investment in Peru.
Telefonica has been the largest telecommunications company in Peru since 1994, when it purchased the government's telecommunications network for US$ 2.0 billion. Telefonica had 2,580,737 fixed lines installed as of 2Q 2006, up 7.7% from 2Q 2005.
Source: Dow Jones - WDR/Intelecon Regulatory News
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