Subject: [NEXTEL-1] Peru's Phone Regulator To Ensure Competitive Mobile Market

From: Marcelrf <[email-masked]>
Date: Mon, 08 Mar 2004 07:26:20 -0500

Peru's Phone Regulator To Ensure Competitive Mobile Market
March 5, 2004 12:03pm
Dow Jones Business News

LIMA -(Dow Jones)- Peru's telecommunications regulator, Osiptel, will
keep a close eye on market competition if Telefonica SA (TEF) and its
mobile phone unit, Telefonica Moviles SA (TEM), buy BellSouth Corp.'s
(BLS) mobile phone assets in Latin America, an Ospitel spokeswoman said
Friday.

If the deal goes through, "Telefonica would control at least 75% of
(Peru's) market. If we let them, they will dominate. If necessary,
Osiptel will step in to regulate," she said.

The Spanish company said Thursday that it was in talks to buy
BellSouth's mobile phone assets in Latin America.
As of December, according to Osiptel's latest figures, Telefonica del
Peru SAA, controlled by Telefonica, had a 51.8% market share in Peru's
mobile phone market, while BellSouth had a 22.4% share.

Other players include Telecom Italia Mobile SpA (TIM.MI), with a 20.8%
share, and a local unit of U.S.-based NII Holdings Inc.(NIHD), which
provides mobile telephone service in Peru under the Nextel name, with a
5.1% share.
As of December there were 2.9 million mobile telephone users in Peru.
Mobile telephone density in the Andean nation is 10.64 per 100
residents, while fixed-line density is 6.72 per 100 residents.

Peru's Ministry of Transport and Communications may study the
possibility of auctioning another mobile telephone band in order to
attract a new operator and ensure competition in the event the
Telefonica-BellSouth deal goes through, Gestion newspaper reported
Friday.

-Rebecca Howard, Dow Jones Newswires; 511-221-7050; [email-masked]

(END) Dow Jones Newswires
March 05, 2004 12:03 ET (17:03 GMT)
http://www.hoovers.com/free/news/detail.xhtml?ArticleID=NR20040305460_2172000999dde7dc

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