Osiptel orders Movistar to reverse unsanctioned price increases

18 Feb 2020

Peruvian telecoms watchdog the Supervisory Agency for Private Investment in Telecommunications (Organismo Supervisor de Inversion Privada en Telecommuniciones, Osiptel) has ordered fixed line incumbent Movistar to reverse a price increase related to its fixed internet plans and bundles. Osiptel noted in a statement that it detected that the provider had breached the terms of the Conditions of Use of Public Telecommunications Services, the regulatory framework which establishes obligations and rights of operators, subscribers and users of public telecommunications services. Specifically, Movistar was found to have broken Article 9 of the legislation by unilaterally modifying user contracts to increase prices without approval from Osiptel. According to the watchdog, the price increase applied by Movistar was the ‘largest recorded in recent years’ with an average hike of PEN13 (USD3.81) per bill and affected around 1.7 million customers.

The regulator has ordered Movistar to reverse the price changes within three months and forbade the operator from applying new increases to fixed internet rates. Further, the telco was instructed that it may not cease or suspend the relevant plans. The regulator threatened to impose severe penalties on the telco should it fail to comply with the order.