Telefonica Secures 19-Year Extension to Peru Mobile Operator License
Published on: 22nd Jan 2013
Note -- this news article is more than a year old.
Telefonica's Peruvian subsidiary has secured an agreement to extend its mobile operator license for a shade under 19 years.
As a condition of the extension, the company has committed to spending US$1.2 billion on boosting rural phone coverage to just under 1,800 villages. The company will also have to provide free internet access to rural schools.
Transport & Communications Minister Carlos Paredes made the announcement, ending 18 months of negotiations between the phone company and the government.
"Having received the company's unconditional acceptance of all the government's terms, we will renew the concession," Paredes said today at a press conference in Lima. The lowered rates will benefit "more than a million" Peruvians, he said.
The mobile network currently has around 20 million customers in the country.
"The conditions represent unprecedented efforts to extend coverage," Telefonica del Peru's CEO Officer Javier Manzanares told Bloomberg News in a statement. "We're going to continue investing in Peru and work faster with the authorities to expand telecommunications as a tool for development."
On the web: Bloomberg News