Telecommunications - Fifth Band

 

SUMMARY

 

Concession of a new license to a third operator in the mobile telephony market nationwide (with Lima and Callao starting in the second half of 2007), who will supply Personal Communications Services in the following bands:

 

BAND D: (1 865 – 1 870 Mhz / 1 945 – 1 950 Mhz); and

BAND E: (1 882,5 – 1 895 Mhz / 1 962,5 – 1 975 Mhz

 

ADVANTAGES OF THE PROPOSAL


Investing in a stable and dynamic country open to foreign investment; Concession of PCS services in a market with a large growth potential; A clear and transparent regulatory framework that promotes private investment in telecommunications A regulatory body with vast and proven experience in its field of competence; and A transparent, fair and objective concession award process.

Peru’s mobile telecommunications services market has experienced significant growth in recent years. From 1.3 million subscribers in 1999, it expanded to 5.5 million in 2005 (22% average annual growth).

 

Although this reflects major growth, the depth of the telephony market (subscribers for every 100 persons) is still below regional indicators. To December 2004, the telephone penetration rate was 14.8 subscribers for every 100 persons, below Chile (62.1), Argentina (34.8), Ecuador (34.4) and Colombia (23.2). This indicator therefore points to continued growth of the number of subscribers in Peru in coming years.

 

STATE COMMITMENTS

 

The allocated frequencies are guaranteed not to be presently utilized, encumbered by any lien or limitation of any nature whatsoever, or subject to any third party rights attached to them. Moreover, in compliance with changes introduced to the National Frequency Allocation Plan, the band has been allocated for public mobile telephony services.

 

INVESTOR COMMITMENTS

 

Meeting the Spectrum Utilization Goals, the quality standards determined by OSIPTEL and the goals included in the Coverage Plan (to be detailed in the Tender Documents).

 

THIRD PARTY COMMITMENTS

The concession will be supervised by the Ministry of Transport and Communications and OSIPTEL, pursuant to each body’s respective jurisdiction.

 

FINANCIAL STRUCTURE

 

The concession will be awarded for a financial consideration and shall include investment requirements (Coverage Plan).

 

CURRENT STATUS


Supreme Resolution 009-2006-EF confirmed the agreement reached by PROINVERSION’s Steering Council to include the aforementioned Project in the Private Investment Promotion Process.The type of concession to be enforced and the competitive factor for the Call for Tenders are presently being prepared.

 

 

SCHEDULE

 

Activity

Date

Call

March 7, 2007

Submission of Terms

March 7, 2007

Queries on the Terms

March 22, 2007

Deadline for queries on the Terms

March 22, 2007

Answers to queries on the Terms

April 9, 2007

Deadline for short-listing

April 16, 2007

Announce of Short-listed bidders

April 23, 2007

Subsmission of first draft of the contract

April 2, 2007

Suggestions to the first draft of contract

April 17, 2007

Submission of final version of contract

April 23, 2007

Submission of Envelopes Nº 2 and Nº 3

May 7, 2007

Opening of Envelopes Nº 3 and Award

It will be communicated by circular letter

Closing date

It will be communicated by circular letter

 

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