TELECOM REGULATOR SANCTIONS THREE MOBILE OPERATORS

UNCLAS LIMA 000394 SIPDIS SIPDIS DEPT FOR WHA/AND, EB/IEP COMMERCE FOR 4331/MAC/WH/MCAMERON TREASURY FOR MMALLOY USTR FOR BHARMON, MCARRILLO, AND CHINCKLEY E.O. 12958: N/A TAGS: ETRD ECPS ECON EFIN EAID USTR PE SUBJECT: TELECOM REGULATOR SANCTIONS THREE MOBILE OPERATORS ¶1. OSIPTEL, the Peruvian telecommunications regulatory agency, announced today that three mobile phone operators will be sanctioned for deficiencies in service experienced before and after the magnitude 8.0 earthquake that struck Peru on August 15, 2007. The three companies include Telefonica Moviles (Movistar),America Movil (Claro),and Nextel. The companies will pay a total fine of 2,887,500 Nuevos Soles (approximately $1,000,000),with Telefonica Moviles paying 1,225,000 Nuevo Soles ($422,414),America Movil paying 1,102,500 ($380,172),and Nextel paying 560,000 Nuevo Soles ($193,103). ¶2. OSIPTEL began a review in September 2007 of the failures in mobile services during the August earthquake. In February 2008, OSIPTEL notified the three companies of the pending sanctions. Last week, OSIPTEL published the final resolution fining the companies for not providing continuous service nor having proper contingency measures. The companies may only contest the sanctions through the Peruvian court system. NEALON