Porta notified by Senatel of process to terminate concession
Published on: 12th Nov 2007
Note -- this news article is more than a year old.
Telecoms supervisory body Suptel said last week it was giving Porta a 30 day grace period to either present a plan aimed at solving technical problems that have arisen and offer compensation to its customers. Otherwise the concession license will be rescinded.
According to AMX's statement, Porta may pursue dispute resolution procedures under the agreement or under law.
Porta's concession contract is due to expire at the end of 2008. "We see the action as a way to put pressure on AMX to negotiate better conditions in terms of taxes or service quality," Deutsche Bank said in a research note.
According to the bank, a scenario including termination of Porta's concession license is very unlikely.