Identifier
Created
Classification
Origin
05LIMA2509
2005-06-06 18:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Lima
Cable title:  

TELECOMS REGULATOR ISSUES TEMPORARY MOBILE

Tags:  ECPS ECON ETRD EINV PE 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS LIMA 002509 

SIPDIS

SENSITIVE

DEPT FOR WHA/AND, WHA/EPSC, EB/CIP
COMMERCE FOR 4331/MAC/WH/MCAMERON
USTR FOR KENNETH SCHAGRIN, JONATHAN MCHALE
FCC INTERNATIONAL BUREAU FOR ETALAGA

E.O. 12958: N/A
TAGS: ECPS ECON ETRD EINV PE
SUBJECT: TELECOMS REGULATOR ISSUES TEMPORARY MOBILE
TERMINATION RATE

REF: A) Lima 2027 B) Lima 7035 C) Lima 566

UNCLAS LIMA 002509

SIPDIS

SENSITIVE

DEPT FOR WHA/AND, WHA/EPSC, EB/CIP
COMMERCE FOR 4331/MAC/WH/MCAMERON
USTR FOR KENNETH SCHAGRIN, JONATHAN MCHALE
FCC INTERNATIONAL BUREAU FOR ETALAGA

E.O. 12958: N/A
TAGS: ECPS ECON ETRD EINV PE
SUBJECT: TELECOMS REGULATOR ISSUES TEMPORARY MOBILE
TERMINATION RATE

REF: A) Lima 2027 B) Lima 7035 C) Lima 566


1. (SBU) Summary. On May 26, Peruvian telecommunications
regulator OSIPTEL issued a temporary mobile termination rate
of $0.2053 for all carriers. According to OSIPTEL President
Edwin San Roman, OSIPTEL is still working to establish a
cost-based mobile termination rate, which should be
published for public comment by mid-June. OSIPTEL, however,
will not likely impose a permanent mobile termination rate
by the June deadline. End Summary.


2. (SBU) Despite previous protests by OSIPTEL President
Edwin San Roman that OSIPTEL could not establish a temporary
mobile termination rate (ref B),on May 26, OSIPTEL
established a new termination rate of $0.2053 for all
carriers. The previous rate varied from $0.25 to $0.23,
depending upon the carrier. (Note: OSIPTEL, not wanting to
look hypocritical, refuses to acknowledge that the new rate
is a "temporary one." End Note.) This rate is the same as
the former mobile-to-fixed rate, which has since been
lowered to $0.067 in February 2005 (ref C). According to
San Roman, this new rate should send a signal to the market
that OSIPTEL will regulate mobile termination rates. The
new rate also reflects OSIPTEL's belief that mobile
termination rates should be based on a symmetrical model -
the rate should be applied uniformly to all carriers
regardless of the network of origin of the call.


3. (SBU) San Roman continues to reassure Post that OSIPTEL
is working on establishing a cost-based model that will be
used to further regulate mobile termination rates. He noted
that the draft resolution should be finished and published
by mid-June, for a 20-day public comment period. Shortly
thereafter, he explained, the new rate should take effect.


4. (SBU) Comment. While the issuance of a temporary mobile
termination rate shows that OSIPTEL is prepared to regulate
the market, $0.20 is still higher than the international
benchmark of $0.16. Moreover, despite lip service from San
Roman, OSIPTEL does not appear to be prepared to meet its
June deadline for a new lower mobile termination rate. We
will continue to pressure OSIPTEL to meet its deadline.
Post believes that USTR should raise this issue during the
current FTA round in Guayaquil. End Comment.

STRUBLE