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Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth

Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth

Summary

In 2016, Peru generated telecom service revenue of US$4.3bn (equivalent to 2.2% of nominal GDP), a decline of 1.8% since 2015, due to depreciation of local currency against the US dollar. However, in local currency, it increased by 4.1% over 2015. The mobile market continues to be the largest contributor to total market revenue, accounting for 69.6% of overall telecom revenue in 2016.

3G remains the most adopted technology in Peru accounting for 54.2% of mobile subscriptions in 2016, and its share will further increase to 61.5% by 2021, owing to increasing availability of low priced smartphones and attractive data plans. 4G subscriptions will reach 15.0m by year-end 2021, or 36.1% of total mobile subscriptions in Peru. Operator investment in LTE network expansion along with the rising demand for faster mobile data speeds will boost LTE adoption.

The top two operators, Movistar Peru and Claro Peru, which provide fixed, mobile and pay-TV services, accounted for 84.2% of total service revenue in 2016. Movistar Peru will continue to maintain its leadership position through 2021 but will face increasing competition, mainly in the mobile segment, from Entel, Bitel and MVNOs. Operators are focusing on 4G network expansions and affordable consumer-centric mobile data offerings to compete in Peru’s telecom market.

Broadband lines will grow at a CAGR of 5.4% during 2016-2021, with the penetration of population to increase from 6.9% in 2016 to 8.5% by 2021. Growth will be driven by the government’s national fiber-optic backbone plan supporting FTTH expansion and adoption to improve Internet access in the country.

It is expected that overall service revenue to grow at a CAGR of 2.2% during 2016-2021. Growth will be driven by Internet services, in particular mobile data services revenue, as a result of increasing adoption of mobile data services supported by 3G and 4G network expansion and the availability of affordable bundled data packages. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021, driven by rising mobile broadband adoption.

The report “Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth” provides an executive-level overview of the telecommunications market in Peru today, with detailed forecasts of key indicators up to 2021.

In particular this report provides the following analysis -

  • Analysis about historical figures and forecasts of service revenue from the fixed telephony (including VoIP), broadband, mobile voice, mobile data and pay-TV markets.
  • Provides overall revenue between the fixed/pay-TV and mobile sectors and between voice, data and video from 2016 to 2021.
  • Help to examine the key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
  • Provides a quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
  • Provides detailed analysis of near-term opportunities for operators, vendors and investors in Peru’s telecommunications and pay-TV markets.
Companies mentioned in this report: Movistar, Claro, Entel, Bitel, OLO, DirecTV

Scope
  • The overall telecom service revenue in Peru will grow at a CAGR of 2.2% during 2016-2021.
  • Growth will be driven by Internet services, in particular mobile data services revenue, as a result of increasing adoption of mobile data services supported by 3G and 4G network expansion and the availability of affordable bundled data packages.
  • Operators are focusing on 4G network expansions and affordable consumer-centric mobile data offerings to compete in the Peruvian telecom market.
  • The Peruvian pay-TV market will gradually take up, providing ample opportunities for operators to grow their subscriber base, particularly for those offering exclusive content and services.
Reasons to buy
  • This Country Intelligence Report offers a thorough, forward-looking analysis of Peru’s telecommunications and pay-TV markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
  • Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Peru’s mobile communications, fixed telephony/VoIP, broadband and pay-TV markets, including the evolution of service provider market shares.
  • With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
  • The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Peru’s telecommunications and pay-TV markets.
  • The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Peru.


Executive summary
Market and competitor overview
Regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Pay-TV services
Identifying opportunities
Opportunities in the market
About the authors
Country Intelligence Report coverage

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