The Peruvian telecom regulator, OSIPTEL, has today published a consultation document on the value of the ‘X’ factor for the RPI-X price cap to be applied to Telefonica’s retail fixed telephony services between 2016 and 2019. Frontier (Europe) advised Telefonica throughout the price cap review.

OSIPTEL’s proposal is an X factor equal to the inflation rate. In practice, this would mean tariffs remaining constant in cash terms over the next three years. The result is based on estimates of the Total Factor Productivity (TFP) and input price growth of Telefonica and the Peruvian economy between 1996 and 2015. The consultation provides details of OSIPTEL’s as well  as Telefonica’s estimates.

The consultation will continue until June 11th 2016.

Frontier regularly advises organisations and regulators on competition and policy issues in the telecommunications sector.

For more information, please contact Julia Caldano on j.caldano@frontier-economics.com, or call +34 91 343 2350.