Strengthening the Competition Framework in a Developing Economy: The Case of Peru

 

Armando Caceres

Christchurch, New Zealand

April 30th, 1999

 

 

Table of Contents

 

Overview of Peru's current Regulatory Framework (1)

 

Overview of Peru's current Regulatory Framework (2)

 

Competition policies as complements to Privatization

 

Characteristics of the Reform Program in Peru

 

The new role of the State in Peru

 

Regulatory Function of the State

 

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Telecommunications: Objectives of the Regulatory Reform (1)

 

Telecommunications: Objectives of the Regulatory Reform (2) Strategies Proposed

  • Creation of a modern, transparent and flexible legal framework to promote private investment and establish real and fair competition.
  • Open all markets to private investment, with no restrictions for foreign ownership.
  • A modern regulatory framework that considered the Ministry of Transportation and Communications (MTC), a specialized regulatory agency (Osiptel) and a restricted role for the competition agency (Indecopi).
  • Transfer of State monopolies to an operator with capital, techonology and experience that will meet regulatory objectives

 

Telecommunications: Analysis of Competition and Regulatory Issues (1)

Number of Enterprises

Market Operating In Waiting List
Fixed Telephony 1 2
Long Distance 1 11
Cellulars 2
Cable TV 57 28
Beepers 45 11
Trunking 11 3
Value Added 92 16
Local Carrier 3 52

 

Telecommunications: Analysis of Competition and Regulatory Issues (2)

USA cents
Country Local Long Distance Average
Argentina 3.35 3.50 3.37
Bolivia 2.31 2.31 2.31
Brasil 4.74 5.47 4.85
Colombia 2.93 2.93 2.93
Chile 1.78 1.78 1.78
Mexico 2.60 2.60 2.60
Peru 2.90 2.90 2.90
Latin America 2.77 3.07 2.82
USA 1.54 1.70 1.57

 

 

Telecommunications: Analysis of Competition and Regulatory Issues (3)

 

Telecommunications: Analysis of Competition and Regulatory Issues (4)

  • Red Cient'fica Peruana or RCP (Internet provider) vs. Telefonica (dominant incumbent entitled with a five year period monopoly on basic telephony), on delays in attending line requests from RCP customers
  • Telefonica vs Tele 2000 (cellular telephony operator), on the legality of roaming services.

 

Electricity : Objectives of the Regulatory Reform

 

Electricity: Regulatory Framework - Pre-Merger Control in the Electric Sector

 

Electricity: : Analysis of Competition and Regulatory Issues (1)

 

Electricity: : Analysis of Competition and Regulatory Issues (2)

 

Some lessons from the review of selected cases

 

Some basic proposals for APEC's future agenda in competiiton and regulatory reform issues