Colombia Regulator Fines Mobile Phone Cos On Price Agreement

BOGOTA (Dow Jones)--The Colombia anti-trust agency fined the local units of Mexico-based America Movil and Spain's Telefonica after establishing the two companies agreed on the fees they charge to other telephone companies for using their networks.

The regulator imposed a fine of 1.72 billion Colombian pesos ($800,000) on Comcel SA, America Movil's Colombian unit, and another of COP572 million on Telefonica.

Comcel said in a filing to the securities regulator that it will appeal the decision. The company said it never incurred in anti-competition practices.

The company said the decision of the anti-trust regulator won't have any negative effect on its financial situation.

Alfonso Gomez, chief executive of Telefonica's Colombian unit, didn't return phone calls seeking comments.

Comcel is the main mobile telephone operator in Colombia with 18.5 million subscribers, or a 65% market share, as of the end of June, while Telefonica has 7.6 million, or 27%, of the market.

They both compete with the local unit of Millicom International Cellular, Colombia Movil which provided service to 2.4 million subscribers.

-By Inti Landauro, Dow Jones Newswires; 57-1-600 19 80; colombia@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 28th August 2007