Summary

Decision

The objective of these guidelines is to establish a framework that promotes the development of public telecommunication services in Peru, through the strengthening of competition, the reduction of the prevalent infrastructure gap, and the expansion of services to rural areas and places of social interest?.

The guidelines set the following goals for the year 2011:
- Fixed teledensity of 12 lines for each 100 inhabitants and mobile teledensity of 60 lines per 100 inhabitants.
- Fixed or mobile coverage for all districts that currently lack access.
- Greater access to the Internet and one million broadband connections.
- Availability of new services and technologies.
- Convergence promotion and digitalization of telecommunication networks.

The main policies established in the Decree are the following:
- The State, including local and regional governments, shall not impose disproportionate or irrational bureaucratic barriers regarding market access.
- Where competition is effective, tariff deregulation should follow. This Decree directs the regulator to initiate the tariff deregulation process for long-distance services and non-residential fixed telephony.
- Interconnection charges should be based on a cost model of an efficient operator, taking into account the characteristics of demand and the real geographic location of the infrastructure. Exceptionally, the regulator can use international benchmarks to set charges. Charges should be reviewed every four years.
- Fixed and mobile users could select their preferred long-distance operator (through pre-selection or call-by-call). Call-by-call selection should be available from payphones.
- Number portability for mobile services will be implemented in 2010.
- Universal access will include broadband access and ICT training. Public-private partnerships can be used to provide telecommunication services. The Ministry can co-finance telecommunication service provision in rural areas and areas of social impact. The Ministry and the regulator shall give favourable treatment to rural operators. The State will promote services based on IP for the provision of universal access.
- Public consultations shall be carried out to guarantee transparency.
- The Ministry shall establish procedures to ensure restricted access to confidential information provided by telecommunication operators. Non-confidential operator information could be shared between the Ministry and the regulator.

In addition, this Decree includes some guidelines for the determination of the X-factor applicable to the price cap of fixed telephony. These provisions are included to reduce the discretion of the regulator when setting the X-factor.

Moreover, specific provisions about resale are included. For example, the regulator shall not establish minimum discounts (over tariffs for final users) for resellers; resellers are responsible to users for the provision of services; and resale is not mandatory for any operator.

In conclusion, these guidelines complement the liberalization guidelines published in 1998 and address specific topics necessary to strengthen competition in the market and promote market expansion.