Telefonica Moviles faces lawsuit

25 Oct 2005

Telefonica Moviles’ Movistar Panama unit is facing a USD72 million law suit, after the country’s Ministry of Economy and Finance (MEF) accused it of concealing assets from the government. The MEF said that the cellco was using two Type A mobile phone licences, but has only paid for one; it launched in Panama through the acquisition of BellSouth Panama, when it gained one of the concessions, but in late 2003 it also took over the assets of Tricom Panama, gaining the second concession.