Regulator suspends new licensee

21 Jul 2004

The Peruvian telecoms regulator has suspended the licence of Telecomunicaciones Hemisfericas (TH) following allegations of favouritism after it was claimed that one of the company’s shareholders is Pedro Toledo, brother of President Alejandro Toledo. TH was awarded a fixed line telephony licence last month, after it agreed to install equivalent to 5% of the number of lines operated by Telefonica del Peru in Lima and Callao. It also committed to investing USD800,000, half of which would come in the first year of operation.