Peru's president Toledo is expected to veto basic rate bill. (Peru).(Brief Article)

Latin America Telecom, February, 2003

Peruvian president Alejandro Toledo is not likely to yield to political pressure from congress to eliminate Telefonica del Peru's basic monthly charge for basic service. On January 6 the congress approved a bill that would abandon Telefonica's monthly charge, but following a meeting with Telefonica de Espana's chairman Cesar Alierta in Davos Toledo remained undecided.

The legislation passed by congress earlier this month violates the privatization agreement signed by Telefonica and the Peruvian government in 1994 and Toledo has signaled that the legal rights of investors must be respected.