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Peru Telecommunications Report Q2 2015

109 Pages BMI Research SKU: BMI5465544

Peru Telecommunications Report Q2 2015

BMI View: BMI believes that relatively low mobile penetration rate on the Peruvian market highlights itspotential for growth. The entrance of five new operators to the mobile market - Viettel, Entel and MVNO'sVirgin Mobile, AT&T and Falabella - will add to the growth of mobile market. Viettel has already madestrong headway in breaking into the market in its first six months of operating. Spectrum auction, due to beheld in 2015, will add impetus to developing LTE services. In the wireline sector, BMI is also bullish forgrowth as Azteca's Fibre Optic Backbone Network project should allow for a larger proportion ofpopulation access to broadband services. While Peru currently trails many of its regional peers fortelecoms penetration, its large market size is attracting foreign investment and should help to encouragerapid growth.

Key Data

The mobile market contracted in terms of subscriptions in 2013, down 1.9% to 29.173mn, but theunderlying trend of moderate growth remains in-tact, with the net loss specifically derived from inactiveprepaid subscription discounting.

Movistar reported in October 2014 that it had reached nearly 100,000 4G LTE subscriptions since thelaunch of the services in January.

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Peru Telecommunications Report Q2 2015

BMI Research

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