Osiptel imposes new requirements on Movistar; issues USD16m of fines in Jan-July period

5 Oct 2020

Peruvian watchdog the Supervisory Agency for Private Investment in Telecommunications (Organismo Supervisor de Inversion Privada en Telecommuniciones, Osiptel) has ordered full-service provider Movistar Peru to introduce web and mobile applications that will allow subscribers to directly and easily manage procedures such as the migration, cancellation or suspension of their fixed internet plan. Osiptel has set a deadline of 60 calendar days for Movistar to implement the order. The timeline for the functions was also determined by the regulator, with the telco required to complete a customer’s request for the termination or suspension of their account within one business day. As a provider with significant market power (SMP), Movistar is subject to greater scrutiny and Osiptel has additional powers to regulate the telco’s activities to ensure a level playing field. To that end, Osiptel has sought to make it easier for customers to switch plans or migrate to alternative provider. As such, the regulator has also required Movistar inform customers of any price increases to a tariff 30 days in advance, with a follow-up reminder ten days before the new rate takes effect. As part of these notifications the company must also inform customers that they may move to a cheaper plan if they wish, switch provider or temporarily suspend their service.

In a separate development, meanwhile, Osiptel has announced that it has imposed fines totalling PEN59.26 million (USD16.2 million) on the nation’s operators during the first seven months of 2020, just over double the amount it issued against the companies in the same period of 2019 (PEN29.10 million). Movistar accrued the lion’s share of the fines with penalties of PEN41.77 million, for 115 infractions, including failing to comply with requirements to improve service quality. Claro was subject to the next largest fine with a penalty of PEN7.19 million for 23 infractions, whilst Entel’s 22 fines totalled PEN5.92 million, with both having violated rules regarding number portability. Bitel was charged a total PEN1.91 million across eleven fines. Osiptel noted that nearly half of the fines (48.94% or 92 of the total of 188 fines issued) were related to failures to deliver on improvement commitments, whilst the next most common infractions were (in order): failure to deliver information on time or delivery of inaccurate information to Osiptel; activation of service without use of biometric systems; non-compliance with portability regulations; non-compliance with service quality regulations; failure to compensate users for service interruptions; failing to communicate on interruptions within a timely manner; and other infractions.