Telefonica to invest $1 bln in Peru

(LIP-wb) — Spain’s Telefonica will invest $1 billion in networks and infrastructure in Peru between 2006 and 2009, company president Cesar Alierta said on Wednesday after a meeting with President Alan Garcia at the Government Palace.

“We reassured our confidence in this country to President Garcia and we will continue to grow”, said Alierta in a press conference.

Alierta described the meeting for the contract renegotiation between Telefonica and the  Peruvian State as constructive and positive.

Alierta maintained Telefonica approaches the conversations with the Peruvian State under the best disposition in order to discuss an ample range of alternatives. “We’re making progess in solving technical and legal details of the agenda”, Alierta concluded.

Verónica Zavala, Peru’s Minister for Transportation and Communication, informed that it will probably take two months until the final results of the contract renegotiation will be known.

She said this is a complex process but they are determined to fulfill the objective of reducing tariffs without jeopardizing investments that requires Peru to improve its telecommunication systems.

Zavala welcomed Telefonica’s announcement of investing one billion dollars in our country during until 2009 to improve fixed-line, mobile, and Internt services.

“This is an important commitment. Peru is by far and large a potent and stable country, from an economic perspective”, she added.

Telefonica dominates the fixed-line market in the South American country.