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Press release                                                                                                  C.02-09

El Salvador, January 20th, 2009


       CS confirms fines amounting US$29,343.60
                to telephone companies
The Board of Directors (BD) of the Competition Superintendence (CS) confirmed the
sanctions imposed to CTE - PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL, due to
failure to supply the requested information by the CS, after said economic agents requested
the CS to revoke the fines. The aforementioned fines total US$29,343.60.

                                      The BD of the CS confirmed the fines imposed to the economic agents CTE -
“The resolution has                   PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL, who must pay,
been founded                          respectively, US$11,286.00, US$10,157.40, US$4,138.20, and US$3,762.00
technically, legally, and             due to failure to supply the requested collaboration in two investigations opened
economically and has
                                      by the CS for the alleged existence of anticompetitive practices in the
been issued dully
                                      telecommunications sector.
reasoned pursuant to
the Constitution of the               The final decision was declared firm since today, January 20th, 2009, date when
Republic and the legal                the economic agents were notified of the decision that resolved the revocation
framework in force. The
                                      recourse filed by them.
CS is prepared to
defend its actions
                                      Once the resolutions are notified, CTE - PERSONAL, TELEFONICA,
before the courts, if
                                      TELEMOVIL, and DIGICEL have eight calendar days to pay the imposed fines.
necessary,” said the
official spokeswoman of
the CS.                               “The resolution has been founded technically, legally, and economically and has
                                      been issued dully reasoned pursuant to the Constitution of the Republic and the
                                      legal framework in force. The CS is prepared to defend its actions before the
                                      courts, if necessary,” said the official spokeswoman of the CS.

Background: Proceedings initiated due to failure to supply information

         September 17th/18th, 2008            The CS requested information for the first time.
           October 2nd/3rd, 2008              The telephone companies partially filed the information.
            December 1st, 2008                The CS requested information for the second time.
                       th        th
         December 11 /12 . 2008               The telephone companies incompletely filed the information.
                            th
           December 16 , 2008                 The administrative sanctioning procedure was initiated due to failure to
                                              supply collaboration.
         From December 18th until
                                              The telephone companies filed the information.
            January 2nd, 2009
                                              The BD issued the final resolution imposing fines due to failure to
            January 15th, 2009
                                              supply information.
            January 16th, 2009                The final resolution was notified.
            January 19th, 2009                The BD of the CCs confirmed the final resolution.
            January 20th, 2009                The CS notified the confirmation of the final resolution and the time
         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
period to pay the fines begins.



Background on the case initiated due to AMERICATEL´s complaint

                            March 24th, 2008       AMERICATEL filed with the CS a complaint against CTE
        Procedure                                  and PERSONAL.
       SC-006-PA-            July 10th, 2008       The CS initiated the administrative sanctioning procedure
         R/2008                                    against CTE and PERSONAL.

Background on the case initiated due to GCA´s and SALNET´s complaint

                          December 12th, 2007      GCA and SALNET filed with the CS a complaint against
        Procedure                                  TELEMOVIL, TELEFONICA, DIGICEL, and PERSONAL.
       SC-022-PA-
         R/2007              July 11th, 2008       The CS initiated the administrative sanctioning procedure
                                                   against PERSONAL, TELEFONICA, TELEMOVIL, and
                                                   DIGICEL.




        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

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Cs Confirms Fines Amounting Us$29,343.60

  • 1. Press release C.02-09 El Salvador, January 20th, 2009 CS confirms fines amounting US$29,343.60 to telephone companies The Board of Directors (BD) of the Competition Superintendence (CS) confirmed the sanctions imposed to CTE - PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL, due to failure to supply the requested information by the CS, after said economic agents requested the CS to revoke the fines. The aforementioned fines total US$29,343.60. The BD of the CS confirmed the fines imposed to the economic agents CTE - “The resolution has PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL, who must pay, been founded respectively, US$11,286.00, US$10,157.40, US$4,138.20, and US$3,762.00 technically, legally, and due to failure to supply the requested collaboration in two investigations opened economically and has by the CS for the alleged existence of anticompetitive practices in the been issued dully telecommunications sector. reasoned pursuant to the Constitution of the The final decision was declared firm since today, January 20th, 2009, date when Republic and the legal the economic agents were notified of the decision that resolved the revocation framework in force. The recourse filed by them. CS is prepared to defend its actions Once the resolutions are notified, CTE - PERSONAL, TELEFONICA, before the courts, if TELEMOVIL, and DIGICEL have eight calendar days to pay the imposed fines. necessary,” said the official spokeswoman of the CS. “The resolution has been founded technically, legally, and economically and has been issued dully reasoned pursuant to the Constitution of the Republic and the legal framework in force. The CS is prepared to defend its actions before the courts, if necessary,” said the official spokeswoman of the CS. Background: Proceedings initiated due to failure to supply information September 17th/18th, 2008 The CS requested information for the first time. October 2nd/3rd, 2008 The telephone companies partially filed the information. December 1st, 2008 The CS requested information for the second time. th th December 11 /12 . 2008 The telephone companies incompletely filed the information. th December 16 , 2008 The administrative sanctioning procedure was initiated due to failure to supply collaboration. From December 18th until The telephone companies filed the information. January 2nd, 2009 The BD issued the final resolution imposing fines due to failure to January 15th, 2009 supply information. January 16th, 2009 The final resolution was notified. January 19th, 2009 The BD of the CCs confirmed the final resolution. January 20th, 2009 The CS notified the confirmation of the final resolution and the time 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. period to pay the fines begins. Background on the case initiated due to AMERICATEL´s complaint March 24th, 2008 AMERICATEL filed with the CS a complaint against CTE Procedure and PERSONAL. SC-006-PA- July 10th, 2008 The CS initiated the administrative sanctioning procedure R/2008 against CTE and PERSONAL. Background on the case initiated due to GCA´s and SALNET´s complaint December 12th, 2007 GCA and SALNET filed with the CS a complaint against Procedure TELEMOVIL, TELEFONICA, DIGICEL, and PERSONAL. SC-022-PA- R/2007 July 11th, 2008 The CS initiated the administrative sanctioning procedure against PERSONAL, TELEFONICA, TELEMOVIL, and DIGICEL. 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