TDP proposes models for financing universal access

Peru's largest fixed line operator Telefónica del Perú has suggested to the transport and communications ministry MTC a number of options for financing projects aimed at expanding telephony coverage to areas without service, Peruvian news agency Andina quoted Telefónica president Javier Nadal as saying. Telefónica suggested for instance that the government dedicate more of its telecom fund Fitel to projects of this kind and that regulator Osiptel reduce the productivity factor, by which TDP is obliged to cut rates each year. A lower productivity factor would mean higher revenues, which would contribute more to Fitel or to the funds TDP would have to invest itself. Telcos redirect 1% of their revenues to Fitel each year. In TDP's case, this adds up to approximately US$10mn a year. "If we use the resources TDP gives annually to Fitel, we would be able to bring coverage to over 200 district capitals a year with telephony and internet projects," Nadal was quoted as saying. The MTC's project to allow the resale of traffic would hinder fresh investment, he added. "This idea is not consistent with other MTC projects such as interoperability [multi-network prepaid cards], which require operators to invest in different areas," he said, adding that traffic reselling implies practically zero investment.