The Competition Superintendence (CS) has initiated a sanctioning procedure against PERSONAL, CTE, TELEFONICA, TELEMOVIL, and DIGICEL, which might finalize with the imposition of fines up to a maximum of US$1,881.00 for every day of non-compliance with the obligation of providing the required information in the sanctioning procedure for anticompetitive practices substantiated by the CS against said economic agents.

1. Press release c. 63-08
El Salvador, December 17th, 2008
Telephone companies obstruct Competition investigation
The Competition Superintendence (CS) has initiated a sanctioning procedure against
PERSONAL, CTE, TELEFONICA, TELEMOVIL, and DIGICEL, which might finalize with
the imposition of fines up to a maximum of US$1,881.00 for every day of non-
compliance with the obligation of providing the required information in the sanctioning
procedure for anticompetitive practices substantiated by the CS against said economic
agents.
The Board of Directors (BD) of the CS has begun a sanctioning procedure against the
“The economic agents are largest telephone companies: PERSONAL, CTE, TELEFONICA, TELEMOVIL, and
in the obligation to provide DIGICEL, which could conclude with the imposition of fines up to a maximum of
the CS with the necessary US$1,881.00 for every day of failing to supply the required information by the
support and collaboration, competition authority in the sanctioning procedure for anticompetitive practices
providing the requested substantiated by the CS against said economic agents.
information and
documentation for the “The BD requested the complainants and defendants, as well as other economic agents
undergoing investigation that participate in the sector and to the General Superintendence of Electricity and
for alleged violations of the Telecommunications (in Spanish, SIGET), information and collaboration in order to
law´s provisions… the four obtain elements for the undergoing investigation. Nonetheless, the only economic
largest telephone agents who did not completely provide the requested information and collaboration were
companies did not PERSONAL, CTE, TELEFONICA, TELEMOVIL, and DIGICEL. Coincidently, said
completely provide the economic agents did not furnish the internal balance sheets, which detail the different
information and accounts to December 31st, 2006 and 2007”, reported the CS´ official spokeswoman.
documentation requested
by the CS…. coincidently, The Articles 44 and 50 of the Competition Law vest the Superintendent with the power to
said economic agents did request relevant information and documentation in order to carry out investigations;
not furnish the internal hence, any person is obliged to supply the necessary support and collaboration to the
balance sheets”, reported CS, furnishing information and documentation of any nature required for the
the CS´ official investigation for alleged violations of the law´s provisions.
spokeswoman.
The suspected infractors were granted a time period to file the requested information,
which ended the past December 11th. Since time past without the compliance of the
information request, a sanctioning procedure must be initiated within which the
aforementioned economic agents could be fined. Said fines increase daily until each
economic agent files the requested information with the CS.
Article 38, 6th paragraph of the Competition Law: “The Superintendence may also impose a fine amounting up to ten
minimum urban monthly wages in the industrial sector for every day of delay, to the individuals, companies, or
institutions who deliberately or negligently fail to supply the requested information, or if collaborating, provide
incomplete or inaccurate information”.
On August 16th, 2006, the CS subscribed a Cooperation and Coordination Agreement with the SIGET. Nevertheless,
“the pending information also is not available at the SIGET and can only be obtained through the collaboration of the
above mentioned economic agents”, informed the CS´ official spokeswoman.
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
Conmutador (503) 2523-6600, Fax (503) 2523-6625 Comunicaciones (503) 2523-6616

2. The economic agents may request the CS, pursuant to the nature of the information, to declare it confidential in
accordance with the Competition Law.
Background
The CS carried out a “Study on Competition of the Telecommunications Sector” on April 2008.
TELEMOVIL was the first company created in the country with local investment. Said company had the sole
concession, which ended with the privatization of the telecommunications sector.
TELEFONICA was the second telephone company in El Salvador (1998) and is in second place with respect to
mobile lines.
CTE-PERSONAL began to render services in 1999 and was the third company to enter the market. This company
belongs to larger fixed line operator in the country.
CTE-PERSONAL is a company whose shareholder is the same as CTE.Telecom´s. The company renders regular
fixed line services, as well as data services and Internet access services, amongst others.
DIGICEL was the fourth company to enter the market in 2002 and its capital mainly comes from US and Salvadoran
investors.
This is the first case where the BD of the CS might sanction an economic agent for failing to supply collaboration
during an undergoing investigation for anticompetitive practices.
Economic agents sanctioned for failing to supply collaboration during undergoing studies
Date Sector Number of economic agents Fine for failing to supply collaboration
March 2006 Pharmaceuticals 5 Competition study
June 2008 Sugar 1 Competition study
Economic agents who failed to supply collaboration during an undergoing investigation for alleged anticompetitive
practices
Economic agent Nature of the not supplied Detail
information
CTE PERSONAL Financial-accounting Balance sheets
TELEMOVIL Financial-accounting Balance sheets
TELEFONICA Financial-accounting Balance sheets
DIGICEL Financial-accounting Balance sheets
Edificio Madreselva, Primer Nivel, Calzada El Almendro y 1ª Avenida El Espino, Urbanización Madreselva.
Antiguo Cuscatlán, El Salvador.
Conmutador (503) 2523-6600, Fax (503) 2523-6625 Comunicaciones (503) 2523-6616