CTC shares skyrocket on back of better than expected rates decree

6 May 2004

The price of shares in Chilean telco Telefónica CTC Chile surged upwards yesterday in the wake of the publication of a new five-year rates decree for CTC Chile by the regulator Subtel, which proved to be much softer than previously expected. Whilst the PTO has railed against the new decree, saying that it does nothing to encourage the ‘harmonic development of the sector’ and will result in many Chileans missing out on access to modernised systems, the market received the news well with the company’s share price ending up 7.41% at USD12.90 per share at the close of play. Based on Subtel’s original proposal, CTC Chile was expecting to see a cut of USD87 million in revenues from local calls from May through to December, but now expects them to remain stable.