Although Peru's mobile penetration is below the regional average, it measures up favourably with the country's GDP per capita, which is comparatively lower. Nevertheless, the country's penetration data hides the fact that about one quarter of the population has no mobile phone at all, while many Peruvians especially urban dwellers have multiple mobile subscriptions.
Three companies compete in the mobile market: Telefónica, trading as Movistar, is the leader; América Móvil, trading as Claro, is in second place; and third is Nextel Perú. Vietnam's Viettel is due to become Peru's fourth mobile network operator, with service launch expected in the second half of 2013, while Virgin Mobile plans to enter the market as a Mobile Virtual Network Operator (MVNO).
After lengthy negotiations, Movistar's licences were renewed in January 2013. Under the terms of the agreement, Movistar must invest about US$1.15 billion to expand coverage to unserviced areas, and it must provide free broadband connections to state schools, healthcare centres, and police stations.
Peru's mobile market still has considerable potential to expand, especially if economic growth continues to lift people out of poverty. Furthermore, due to the country's low fixed broadband penetration, 3G services are likely to boom in the coming years. With the expansion of UMTS networks and the declining price of laptops and smartphones, we expect mobile broadband and phone-based internet browsing to escalate.
Accompanied by key market statistics and analyses, this report provides an overview of the market and a brief profile of mobile operators. It also contains scenario forecasts for the years 2015 and 2020.
Movistar and Entel Chile won spectrum for LTE services at a public auction held in July 2013; Entel Chile, already owner of fixed-line operator Americatel Peru, completed the acquisition of Nextel Peru in August 2013; text messaging in Peru is undeveloped compared with other Latin American countries.
Companies covered in this report include:
Telefónica del Perú (trading as Movistar), América Móvil Perú (trading as Claro), Nextel Perú, Viettel Peru, Virgin Mobile.