TDP future to be decided in August

2 Aug 2012

The Peruvian government is expected to announce in August whether it will renew the operating licences of Telefonica del Peru (TDP), Dow Jones Newswires reports, citing a spokeswoman from the Ministry of Transport and Communications (MTC). The government has been reviewing TDP’s concession since last year and has almost completed its study. TDP’s licences came up for renewal last year, but a dispute between the government and the telco has cast doubt on the provider’s future. The state claims that it is owed back taxes totalling PEN2.0 billion (USD748.6 million), though TDP has refuted the assertion and has taken up the matter with the nation’s finance ministry and sought international arbitration from the International Centre for Settlement of Investment Disputes (ICSID). Telecoms minister Carlos Paredes said that the government would launch an international auction to attract a new player should the government choose to block the renewal of TDP’s concessions.

Peru, Movistar Peru (TEM Peru), Telefonica del Peru (TdP, Movistar)