Telefónica del Perú fixed line contract renewal in doubt

Telefónica del Perú has criticized Peruvian authorities for raising doubts over the renewal of the incumbent's fixed line and international long-distance concession license for 2027-32.

The company, which has been the fixed line incumbent since 1994, has already renewed its license for three periods (2014-19, 2019-23, and 2023-27).

Telefónica requested in December 2013 the renewal for the 2027-32 period, a proposal which was discussed by the transport and communications ministry (MTC) and telecoms regulator Osiptel last week.

In a statement, Osiptel said that it has identified numerous failures to meet the terms of contract, which carries the penalty of reducing the window the company can apply for renewal of its 2027-32 contract to 4.15 years, therefore raising the question if it should be renewed.

According to local daily La República, Telefónica has criticized the Osiptel's methodology, adding that 90% of the regulator's accusations refer to disputes with other private sector entities and do not represent a failure to meet contract obligations.

Telefónica added that it had not been involved in the evaluation and that the criteria used have been inconsistent.

According to reports, a final decision will be taken on November 21.