Privatization of Telecommunications in Peru Harvard Case Solution & Analysis

When the administration of Peruvian President Alberto Fujimori was embarking on an ambitious program of privatization is inevitable creaking telephone system. With the 2.5, but the phone lines per 100 people, Peru, in the middle of the 1990's was the lowest phone "density" in Latin America, the installation of the new line took years, but through a thriving black market in existing lines. But the privatization committee, which is starting to build as part of existing local and long distance telephone monopoly, knows that he faces huge obstacles to change: suspicious and powerful military which nationalized telephone system in the 1970s, influential mobile operator phone with its agenda of the day, existing alliances, doubtful legislators who must approve a constitutional amendment to allow the privatization to go ahead. This is a matter of political management of privatization. He describes the "interest group map" developed by the privatization committee and raises the question of what tactical approach should be taken with each. Thing users need to think of potential conflicts to the best and most useful tactic. Continued describes the early success of the privatization process, after the sale of the phone in Spanish phone giant, Telefonica. HKS Case Number 1404.0 "Hide
by Merilee Grindle, Esther Scott Source: Harvard Kennedy School 16 pages. Publication Date: January 1, 1998. Prod. #: HKS200-PDF-ENG

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