Peru’s President Garcia suggests renegotiation of Telefonica contract


(LIP-wb) — Peruvian President Alan Garcia said this afternoon that his government has suggested a global renegotiation of the contract with Telefonica del Peru to reduce service tariffs for fixed-line telephony.

“The goal is that Peruvians can save between S/. 120 and S/.150 (roughly US$ 40.00) annually" Garcia said.

A modified contract would also seek additional phone coverage in some of Peru’s rural provinces that are still without service.
Garcia also suggests a pay-per-second system instead of the current per-minute charges.

He said this proposal is more extensive than the bill passed by Congress which he Garcia had to approve by tomorrow.

Garcia affirmed that Peru wants to avoid a conflict with Telefonica. "We don’t need legal problems and scandals when we can, via dialogue, come to adequate solutions," Garcia said.

“I share the uneasiness of many analysts and economists who are concerned that contracts can be broken in our country. Two important economic projects are currently on hold until investors know what happens with the Telefonica issue”, Garcia stressed. “I understand that people want to what securities they are given before investing".

– related article –

– Peru proposes renegotiating Telefonica contract (by Reuters)