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Peru government renews Telefonica contract for next 18 years
By Manuel Vigo
January 21, 2013
The Peruvian government announced it would extend its contract with Spanish telecom Telefónica Móviles, for 18 years and 10 months.
The announcement was made by Minister of Transport and Communications Carlos Paredes, during a press conference on Monday afternoon, Peru21 reported.
Paredes said the Spanish firm had agreed to all of the government’s conditions, including a “social price,” which would give the nation’s poorest a 50 percent discount over standard telephone rates.
Telefónica, Parades said, also agreed to expand coverage to 409 cities, and 1,848 spots across the country, the daily reported.
Furthermore, all towns with over 400 residents will have access to mobile telephone coverage.
Additionally, free internet will be provided to public schools, police stations, health centers, and municipalities, among other state owned agencies.
On Tuesday, Minister Paredes warned that Telefonica could face “very high monetary penalties” if it failed to meet the terms of their contract.
The deal was made despite an ongoing dispute between the Spanish firm and the Peruvian government over a tax dispute.
According to Sunat, the country’s tax agency, Telefonica owes at least $850 million in taxes.
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Total coments: 5
Commented By: CAndyPOB
On: February 9, 2013. 10:40 am
Ladronica or Robofonica are two of the printable names I have heard used for this outfit. Should you sign up for a contract with them, check VERY carefully that what you sign is what they provide. My contract was changed after I had left their office. I have asked for proof of the different conditions and costs, and their response is, "It's on the computer." They cannot provide my signature nor any other document. When will another company be allowed to compete in what is effectively a two horse race?
Commented By: Christine
On: January 23, 2013. 10:13 pm
No, this is not possible! The government must organize a referendum on the Telefónica issue, we the customers are unsatisfied with its service, which on top of being expensive, in overall Latin American terms, is frankly inefficient.
Commented By: NELLY
On: January 23, 2013. 11:01 pm
DEFINITELY THERE IS SOMETHING FISHY IN THIS DEAL. THE 50% LESS FOR THE SO CALLED SOCIAL PRICE IS COVERED BY THE TAXES TELEFONICA OWES. IN OTHER WORD, WE ARE PAYING FOR THE DIFFERENCE AND AS PER USUAL TELEFONICA MAKES THE BEST DEAL THANKS TO THE PERUVIAN GOVERNMENT.
Commented By: CPG
On: January 22, 2013. 3:52 pm
If Telefonica won't pay its income tax bill, why would it pay penalties if it defaults on its contractual obligations? Yet the contract is renewed for 19 years????? Something's fishy.
Commented By: Joseph Expat
On: January 22, 2013. 2:51 pm
Way to go Peru! If I owed SUNAT twenty soles I would not be able to leave the country. 18 years is a long long time. I wonder who got paid and how much to sign off on this sweetheart deal? I tried to call the Swiss Banks but Telefonica would not complet the call.
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