Peru Telecommunications Q1 2021

Peru Telecommunications Q1 2021

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The Peruvian mobile market has seen strong growth, despite high penetration rates, owing to the strong competitionbetween operators which keeps prices down. It seems that the decrease in subscription started in Q219 gave way to a new trend,the market having lost over 5.1mn subscribers by end-June 2020. Operators continue to invest heavily in expanding the availabilityof 4G services, both in terms of coverage and price, as well as new investment in fixed services to drive convergence. Even if thecoronavirus pandemic, which led the government to impose a lockdown in March 2020 will stop or slow down these operations fora while, the long term trend remains upward. Price competition from newcomers, Bitel and Entel, has led to a decrease in averagerevenue per user levels, hindering the monetisation of the advanced LTE-A networks through content and services. Operators arealso striving to improve their converged offers by investing in fixed broadband, particularly into FTTx, currently dominated byTelefónica, also the leader in fixed voice and pay-TV.