Long-distance operators feeling the pinch from declining fees

16 Sep 2005

Low interconnection fees are to blame for an increase in the number of long-distance operators in Peru that have been forced out of business, according to BNamericas. Over the last three years the total number of DLD operators has been in steady decline: there were 31 in 2002 but this had dropped to 21 last year and a further seven closures are anticipated by the end of 2005. The main reason for the high failure rate is the reduction in termination charges for incoming ILD calls which have fallen from USD0.03/minute in 2002, to just USD0.015/minute this year. Some argue that the current figure is less than the actual cost incurred by the telcos and have petitioned the telecoms regulator Osiptel to set termination charges at no less than USD0.03/minute to protect the status of the industry. In 2004 the volume of incoming ILD traffic reached 2.06 million minutes, while outgoing international calls reached 218,255 minutes, meaning that nearly one out of 9.5 calls is incoming.