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Cablegate: Telecom Regulator Sanctions Three Mobile Operators

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R 042106Z MAR 08
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TO RUEHC/SECSTATE WASHDC 8093
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASH DC

UNCLAS LIMA 000394

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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

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