Government plans TDP contract negotiation

5 Oct 2006

The Peruvian government has proposed a broad contract renegotiation with Telefonica del Peru (TDP), after Congress voted last month to force telephone companies, the most important of which is TDP, to drop the basic monthly charge for fixed line consumers. President Alan Garcia now has until the end of today to decide whether or not to veto the law, or return it to the legislature for further work. ‘The government’s purpose at this time in its talks with Telefonica is broader. We have proposed a global renegotiation of the contract in order to reduce by an important amount each of the rates it charges for different services,’ Garcia told reporters. He said that among other issues, the renegotiation would address the fact that telcos bill by the minute instead of by the second. The legislature has also been examining whether to allow consumers to accumulate unused time on telephone cards, instead of having the leftover time expire.