Telefonica negotiates regulatory reform

18 Jul 2006

According to BNamericas, Telefonica International president Jose Maria Alvarez-Pallette has confirmed that his company would be prepared to drop a lawsuit against the Argentine government in exchange for the implementation of regulatory reforms. In January 2005 Telefonica renewed an appeal with the World Bank’s International Centre for Settlement of Investment Disputes for compensation for damages incurred in the 2002 financial crisis in Argentina of USD2.83 billion. The telco argues that the Buenos Aires administration should not have ordered operators to charge in pesos rather than US dollars. In February this year the Spanish telco agreed to temporarily suspend the lawsuit after reaching agreement with the government for telecoms rates to be adjusted to account for inflation.