MTC to select mobile license winner March 30

Peru's transport and communications ministry MTC will decide on March 30 the winner of the country's fourth mobile license, local newspaper Diario Correo reported. The ministry will analyze all proposals and will select the company that makes the best financial offer; bearing in mind the bidder's expansion plans. The MTC has already passed a law that prohibits active Peruvian mobile operators from participating in the auction, since the idea is to promote the entrance of a new operator in the market. Technically Peru now has three mobile operators, because Spain's Telefónica Móviles (NYSE: TEM) acquired BellSouth Peru and may combine it with TEM's local operation Telefónica Móviles. Whether TEM merges the two units into a single dominant operator depends on the MTC, which is analyzing the facts to make sure users and other mobile operators are not put at a disadvantage, according to communications vice minister Juan Pacheco. One of the bidders for sure will be América Móvil (NYSE: AMX) and they are the most likely winner, because they already have a presence in the fixed side with Telmex and this would complement their fixed operations," Pyramid analyst Marc Einstein told BNamericas. "Telefónica has a tremendous presence in the country on the fixed and mobile side, as well as paid TV, and they are very aggressive in internet service. They will continue to be specially strong in the residential side, so I think Telmex will be going after the corporate sector specifically," he added. "We are taking time to preserve competition in the market and prepare the way so users and companies do not suffer, but we expect to have a decision early next month," Pacheco was quoted as saying.