Peru’s regulator dishes out fines and hits Movistar with new obligations

Peru’s regulator dishes out fines and hits Movistar with new obligations

Peruvian regulator Osiptel (Organismo Supervisor de Inversion Privada en Telecommuniciones) has ordered the local unit of Movistar to implement measures to let subscribers manage their subscriptions more easily.

Specifically, Movistar Peru must launch web and mobile applications that allow subscribers to migrate, cancel or suspend their fixed internet tariffs directly, reports CommsUpdate.

The operator has been given 60 days to comply with the order, and following implementation it must demonstrate that customer requests to suspend or terminate their accounts can be completed within one working day.

Movistar Peru has been deemed to have significant market power (SMP), granting the regulator further authority to ensure fair competition by limiting the operator’s actions. These new measures will, for example, make it easier for Movistar subscribers to change their tariffs or switch providers.

The new measures also mean that Movistar is obliged to provide subscribers with 30 days’ notice of any increases to their tariff, followed by a reminder 10 days before these changes take effect. These messages must also inform customers that they have the option of switching plans or providers, or suspending their tariff.

Movistar was the major subject of a recent round of penalties imposed by Osiptel, which has fined Peru’s operators a total of PEN59.26 million (US$16.2 million) for the first seven months of 2020. This amount has more than doubled year-on-year from 2019, which saw fines of PEN29.10 million issued.

With 115 violations, Movistar amassed a PEN41.77 million penalty, with many charges of failing to meet service quality standards. Claro recorded 23 infractions, receiving a PEN7.19 million fine, while Entel clocked in with 22 for a PEN5.92 million penalty and Bitel incurred PEN1.91 million for 11 violations.

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