Millicom Peru S. A.

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Millicom Peru S. A., a subsidiary of Millicom Cellular International, was awarded through competitive bidding a 20-year license to provide fixed telephonic services through Wireless Local Loop technology in the frequency 3.4-3.5 Ghz in Peru. The company spent US$ 9.8 million for the concession on July 20th 2000. In 2000, the company only provided services in Lima but it planned to extend its presence into other regions of the country. By 2003, the service area extended to Chiclayo and Trujillo. In 2002, Millicom entered into an additional concession agreement with the Peruvian government to provide fixed services (local and long distance) to the states of Ancash, Arequipa, Ica, La Libertad, Lambbayeque, Lima, and the constitutional province of Callao. Millicom sought to exit the Peruvian market beginning in 2002 but had not found an investor as of 2003. Millicom consequently wrote-down their operations in Peru for an approximate US$5.3 million. In October 2006, the sale of Millicom Peru S.A. to Nextel del Peru S.A. was completed for an amount of approximately $5 million.