Peruvian Telecoms Nationalisation A Strong Possibility

The Peruvian telecoms industry is facing huge uncertainty, with a presidential runoff less than a month away. The two candidates are at opposite poles of the political spectrum. Right-wing Keiko Fujimori faces left-wing Ollanda Humala, who organised a coup against his opponent's president father in 2000. Humala may have toned down his socialist stance, but CFW is concerned over nationalist policies that look set to disrupt the booming telecoms sector. In his manifesto, Humala has proposed to form a national telecoms company, but there are worries that he will attempt to expropriate a current operator rather than create a separate entity. If Humala is to win, BMI believes Telefónica may be most attractive to the government if such a takeover was to occur.

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