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Telecompaper | 8 September 2023
Mexico’s Azteca files arbitration claim against Peru in fibre backbone case
Mexico’s Azteca Comunicaciones has initiated international arbitration proceedings against the Peruvian state after the latter terminated its concession to deploy, operate and maintain the country’s Fibre Optic Backbone Network (RDNFO). According to DPL News, Azteca and its parent TV Azteca filed a claim at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC on 23 August alleging that a breach of the concession contract.
The case relates to the 20-year concession awarded to Azteca back in 2014 to deploy, operate and maintain the country’s Fibre Optic Backbone Network (RDNFO), a contract that was terminated early in January 2022 after Peruvian telecom regulator Osiptel complained that demand for capacity was 84 percent less than expected.
However, Azteca claims that that the state was responsible for the fact that the backbone network was under-utilised, adding that the provisions of the Free Trade Agreement between Mexico and Peru were not respected when it came to the RDNFO.
The 13,500km RDFO network links 180 of Peru’s provincial capitals and interconnects with the 21 regional broadband projects. Peru’s national telecommunications programme Pronatel took over management of the RDNFO after the concession between the ministry and Azteca expired in 2021, guaranteeing the provision of the service for up to five years.