Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05LIMA2025, CAN PERU IMPROVE COMPETITION IN TELECOMS INDUSTRY?

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05LIMA2025.
Reference ID Created Released Classification Origin
05LIMA2025 2005-05-03 16:47 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 LIMA 002025 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/AND, WHA/EPSC, EB/CIP 
COMMERCE FOR 4331/MAC/WH/MCAMERON 
USTR FOR KENNETH SCHAGRIN, JONATHAN MCHALE 
FCC INTERNATIONAL BUREAU FOR ETALAGA 
 
E.O. 12958: N/A 
TAGS: ECPS ECON ETRD EINV PE
SUBJECT: CAN PERU IMPROVE COMPETITION IN TELECOMS INDUSTRY? 
Ref: Lima 984 
 
This report contains sensitive business information.  Please 
protect accordingly. 
 
1.  (SBU) Summary.  Two recent developments in the 
telecommunications industry have GOP officials pointing to 
improved competition in the market.  America Movil, a 
Mexican company owned by Carlos Slim, acquired the fourth 
mobile band on March 30 and should begin operations by early 
2006.  The Ministry of Transportation and Communications 
(MTC) formally approved the merger of Telefonica del Peru 
and BellSouth on April 8.  MTC, in return, demanded that 
Telefonica give up one of its two frequency bands (as part 
of the MTC spectrum clean up) and commit to expand mobile 
service to 2,000 communities.  Despite GOP efforts to open 
the market to new mobile participants, competition in the 
telecommunications market is still limited, as Peru's 
excessive mobile termination rates benefit Telefonica vis-a- 
vis other providers.  End Summary. 
 
Limited Competition But Room For Growth 
--------------------------------------- 
 
2.  (U) Although Peru is experiencing unprecedented economic 
growth, this is not mirrored in the mobile 
telecommunications sector.  In 2004, there were only four 
million users, a significant increase from 2.9 million users 
in 2003.  Telefonica del Peru, with 67.5 percent of the 
market, dominates Peru's mobile market.  Italy's TIM Mobile 
ranks second, with 26.9 percent, and Nextel is third with 
4.5 percent.  Of note for future competition:  China's 
Huawei recently successfully completed a pilot of low-cost 
mobile phones in the 450-mgH band in Peru. 
 
America Movil Wins Fourth Band 
------------------------------ 
 
3.  (SBU) America Movil, a Mexican company owned by 
millionaire Carlos Slim, was awarded Peru's fourth band on 
March 30.  According to the MTC, America Movil only paid 
$21.1 million for the spectrum, considerably more than the 
$180 million TIM paid to enter the market in 2002.  America 
Movil, using GMS/GRPS technology (which is compatible with 
the TIM system), will begin operations in Peru by late 
2005/early 2006.  According to Carlos Slim, Sercotel's (as 
the Peruvian company will be known) entry into the market 
will help drive down Peru's high mobile costs. 
 
4.  (SBU) America Movil was the sole bidder on Peru's fourth 
band, even though Nextel was expected to submit an offer. 
Alfonso de Orbegoso (protect), Vice President of Legal 
Affairs at Nextel Peru, informed Commercial Counselor in mid- 
March that a Sprint (Nextel's parent company) assessment of 
the project determined that the high termination rates 
(averaging $0.21) and the unwillingness of Osiptel to act 
quickly were limiting factors in Nextel's ability to compete 
in the market.  As a result of these factors, Nextel's Peru 
based finances were deteriorating, making it financially 
unable to bid on the fourth band.  Furthermore, unless 
Osiptel regulates the high mobile rates soon, Nextel will 
face serious financial difficulties in Peru, limiting the 
company's ability to expand service throughout the country. 
 
BellSouth Merger Approved 
------------------------- 
 
5. (U) After months of deliberation, the MTC formally 
approved the merger of Telefonica del Peru and BellSouth on 
April 8.  MTC's approval, however, came with a multitude of 
draconian stipulations.  First, Telefonica must give up one 
of its two frequency bands within the next two years, which 
the MTC will open to bidders by the end of 2007.  (Note: 
This is part of the MTC's plan to clean up spectrum, which 
will affect all mobile providers.  End Note.)  Additionally, 
Telefonica must waive the fees for former BellSouth clients 
who wish to cancel service.  (Under Peruvian law, customers 
must pay the entire cost of the service contract if the 
contract is cancelled early.)  Third, Telefonica must expand 
or improve mobile access to a minimum of 2,000 communities 
in the poorest areas of Peru by 2008.  Failure to do so will 
result in a fine of 16,500 soles ($5,077) per community, 
paid to MTC.  Fourth, Telefonica is prohibited from 
including former BellSouth customers on its on-net plan 
until 2007.  Finally, the MTC noted that if OSIPTEL finds 
Telefonica guilty of committing five infractions (cross 
subsidy, predatory pricing) in a two-year period, Telefonica 
would lose its concession.  Furthermore, if Telefonica 
commits two infractions in one year, it will also lose its 
concession of BellSouth. 
 
Comment: Increased Competition? 
------------------------------- 
 
6.  (SBU) Peru's telecommunications industry, particularly 
the mobile sector, is underdeveloped.  There is a huge 
potential for growth and the entrance of America Movil, as 
well as the merger of Telefonica and BellSouth, should 
marginally improve competition between mobile providers. 
However, the GOP must grapple with Peru's high mobile 
termination rates, which continue to undermine competition 
in the market.  Telefonica, which controls over two-thirds 
of the market, allegedly continues to use predatory pricing 
and cross subsidies to keep its on-net rates low.  These 
practices should cease when the new mobile rate takes affect 
in June.  If not, Nextel now has a means by which to bring 
its complaints to MTC, which ultimately may cause Telefonica 
to lose its concession of BellSouth. 
 
STRUBLE