Market Research Logo

Peru - Telecoms, Mobile, Broadband and Forecasts

Peru - Telecoms, Mobile, Broadband and Forecasts

Peru’s mobile market livens up with new players and LTE rollout

BuddeComm’s yearly update of Peru - Telecoms, Mobile, Broadband, and Forecasts provides a comprehensive overview of the trends and developments in the telecommunications market of Peru, including the regulator’s market data for the first quarter of 2013, mobile operator data to mid-2013, other industry data, and expected market developments in the coming years.

Economic conditions

Peru’s economic expansion has made it a star performer in Latin America, but GDP per capita is still far lower than the regional average. Telecom penetration reflects the country’s poverty map. Fixed-line and mobile subscribers are highly concentrated in urban areas – particularly the capital city. Besides poverty, another challenge for Peru is the rugged topography of the Andean mountains and Amazon jungles.

Investment opportunities

Peru’s single concession regime allows for the provision of all telecom services, including fixed-line, mobile, pay TV, and internet. The government favours foreign investment and follows pro-business, pro-growth policies. With GDP expected to expand 6% annually over the next several years, Peru’s telecom sector is a promising arena for investors.

Fixed line market

Peru’s fixed-line teledensity is the third lowest in South America after Bolivia and Paraguay. Obstacles to fixed-line growth include widespread poverty, fixed-to-mobile substitution, expensive telephone services, and geographical inaccessibility in the rugged Andean mountains and lowland Amazon jungles. Trading as Movistar, Telefónica del Perú (TdP) dominates the basic telephone market. América Móvil’s Claro occupies a distant second place, and Americatel is third with only about 1% of the market.

Mobile market

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.

Mobile operators

Three companies compete in the mobile market: TdP’s Movistar is the leader, América Móvil’s 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).

Mobile broadband and 3G

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 3G phone-based internet browsing to escalate.

Broadband market

Fixed broadband subscriber penetration in Peru is considerably lower than average for Latin America. In a country where internet user penetration used to be remarkably high in the days of dial-up, the poor development of fixed broadband may seem surprising. Reasons for the shortcoming are several. Besides the obvious barriers – such as poverty, limited levels of literacy, low computer penetration, and rugged topography – perhaps the biggest problems is the lack of competition, which has made broadband in Peru one of the slowest and most expensive in the region. However, the governments national broadband plan, enacted into law in July 2012, is expected to drive strong market growth in the coming years.

Peru’s fixed-line, broadband, and mobile statistics – 2011 - 2013
Sector | 2011 | 2012 | 2013 (e)
Fixed-lines in service
Teledensity per capita | 9.8% | 10.2% | 10.2%
Broadband
Penetration per capita | 4.0% | 4.7% | 5.3%
Mobile telephony subscribers
Penetration per capita | 89.1% | 98.1% | 99.5%
(Source: BuddeComm based on industry data)

Market Highlights

Movistar and Entel won spectrum for LTE services at a public auction held in July 2013, and are required to roll out LTE services by mid-2014.
Entel Chile, already owner of fixed-line operator Americatel Peru, completed the acquisition of Nextel Peru in August 2013.
Following the successful implementation of Mobile Number Portability, the government has ruled that Fixed Number Portability will be launched by mid-2014.
Conditions for the renewal of Movistar’s licence, concluded in January 2013, include investments of about US$1.15 billion to expand coverage to unserviced areas as well as the provision of free broadband connections to state schools, healthcare centres, and police stations.
The Telefónica group approved the merger by absorption of TdP’s three subsidiaries TEM Perú, Telefónica Multimedia, and Star Global Com into TdP, but regulatory approval is still pending.
China’s VelaTel is looking to sell WiMAX (LTE ready) operator VelaTel Peru (formerly Perusat).

This report is essential reading for those needing high-level strategic information and objective analysis on the telecom sector in Peru.

It provides further information on:

Regulatory environment;
Economic trend and its impact on telecommunications;
Telecoms operators – consolidations, acquisitions, new licences;
Company performances and ARPU statistics;
Analyses of Peru’s broadband and mobile sectors, including future outlook;
3G developments, regulatory issues and technologies including HSPA and LTE;
Law for the Promotion of Broadband and for the Construction of a National Fibre-Optic Backbone;
Historical and current subscriber statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics Peru - 2012
    • Table Telephone network statistics - 2012
    • Table Internet user statistics - 2012
    • Table Broadband statistics - 2012
    • Table Mobile statistics - 2012
    • Table National telecommunications authority
    • COUNTRY OVERVIEW
      • Table Evolution of GDP in Peru - 2000 - 2013
      • Outlook
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF PERU'S TELECOM MARKET
      • Table Fixed and mobile market share - 2012
      • Table Percentage of households with access to ICT services - 2012
    • MARKET ANALYSIS - 2012
      • Table Telecommunications revenue - 2001 - 2016
  • REGULATORY ENVIRONMENT
    • BACKGROUND
    • REGULATORY AUTHORITIES
      • Ministry of Transport, Communications, Housing and Construction (MTC)
      • Osiptel
    • TELECOMMUNICATIONS INVESTMENT FUND (FITEL)
    • MULTICARRIER SYSTEM
    • INTERCONNECT
    • DIFFERENTIATED INTERCONNECTION CHARGES
    • ACCESS
    • MOBILE NUMBER PORTABILITY (MNP)
    • FIXED-LINE TARIFFS
    • SINGLE CONCESSION REGIME
      • Table Number of licences per service - 1997; 2001; 2007; 2010; 2011
    • TELEFÓNICA DEL PERÚ'S CONTRACT
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF OPERATORS
      • Local fixed-line service
        • Table Fixed lines in service - operator market share - 2001 - 2013
      • Long-distance fixed-line service
        • Table Domestic long distance traffic - operator market share - 2000 - 2013
        • Table International long distance traffic (outgoing ) - operator market share - 2000 - 2013
    • MOVISTAR PERÚ (TELEFÓNICA)
      • Table Telefónica del Perú at a glance
      • Table Movistar - fixed lines in service - 2001 - 2013
    • CLARO PERÚ (AMÉRICA MÓVIL)
      • Table Claro Perú at a glance
      • Table Claro - fixed lines in service - 2001 - 2013
    • AMERICATEL PERÚ
    • GILAT TO HOME PERÚ (GHP)
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL TELECOM NETWORK
      • Fixed-line statistics
        • Table Fixed lines in service and teledensity - 1997 - 2013
      • Public payphones
        • Table Public telephones - 1997 - 2013
      • Rural telephony and FITEL
      • Copper cable theft
    • INTERNATIONAL INFRASTRUCTURE
      • Submarine cable networks
      • Satellite networks
    • INFRASTRUCTURE DEVELOPMENTS
      • Very Small Aperture Terminal (VSAT)
      • Wireless Local Loop (WLL)
      • CDMA 450
      • IP and Voice over Internet Protocol (VoIP)
    • WHOLESALE
  • BROADBAND MARKET
    • OVERVIEW
      • Fixed broadband statistics
        • Table Internet users and user penetration rate - 1997 - 2013
        • Table Broadband subscribers and penetration rates - 1999 - 2013
        • Table Fixed broadband technologies - market share - 2000 - 2013
      • Fixed broadband market analysis
      • Cabinas públicas
    • GOVERNMENT INITIATIVES
      • One Laptop per Child project
      • FITEL broadband plans
      • National Fibre-Optic Backbone
    • ISPS AND BROADBAND PLAYERS
      • Table Broadband operators' market share - 2007 - 2013
    • CABLE MODEMS
      • Table Cable modem subscribers - 2000 - 2013
    • ASYMMETRICAL DIGITAL SUBSCRIBER LINE (ADSL)
      • Table ADSL subscribers - 2000 - 2013
    • WIRELESS BROADBAND
      • WiMAX
    • FIBRE-TO-THE-HOME (FTTH) NETWORKS
    • MEDIA CONVERGENCE
    • E-COMMERCE
      • Table Peru - B2C e-commerce spending - 2005 - 2013
  • DIGITAL MEDIA / DIGITAL ECONOMY
    • BROADCASTING
      • Pay TV overview
        • Table Pay TV subscribers and penetration rates - 1998 - 2013
        • Table Pay TV operators' market share - 2002 - 2013
      • Cable TV
      • Satellite-based digital pay TV developments
      • Digital Terrestrial TV (DTTV)
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF PERU'S MOBILE MARKET
      • Mobile statistics
        • Table Mobile subscribers and penetration rate - 1997 - 2013
        • Table Mobile market share by operator - 1997 - 2013
        • Table Mobile ARPU in Peru - major operators - 2009 - 2012
        • Table Mobile prepaid/postpaid ratio - 2001 - 2013
    • REGULATORY ISSUES
      • Spectrum regulations
        • Table Bands and spectrum
      • Spectrum auctions and awards
      • Mobile licence renewals
      • SIM card registration
    • MOBILE TECHNOLOGIES
      • Overview
      • Second Generation (2G) mobile (GSM/CDMA/iDEN)
      • Third Generation (3G) mobile (UMTS)
      • Long Term Evolution (LTE)
    • MAJOR MOBILE OPERATORS
      • Movistar Perú (Telefónica Móviles Perú)
        • Table Telefónica Móviles Perú at a glance
        • Table Movistar - mobile subscribers - 2001 - 2013
      • Claro Perú (América Móvil)
        • Table Claro Perú at a glance
        • Table Claro - mobile subscribers - 2001 - 2013
      • Nextel Perú (Entel Chile)
        • Table Nextel Perú at a glance
        • Table Nextel subscribers - 2001 - 2013
      • Viettel Peru
    • MOBILE MESSAGING
      • Short Message Service (SMS)
        • Table SMS by operator - 2004 - 2013
    • MOBILE BROADBAND
      • Table Mobile broadband subscribers and penetration - 2009 - 2013
    • MOBILE SATELLITE
  • FORECASTS
    • FORECASTS - FIXED-LINE MARKET 2015; 2020
      • higher fixed line growth
        • Table Forecast fixed line growth - higher growth scenario - 2015; 2020
      • lower fixed line growth
        • Table Forecast fixed line growth - lower growth scenario - 2015; 2020
    • FORECASTS - FIXED BROADBAND MARKET 2015; 2020
      • higher broadband growth
        • Table Forecast broadband subscribers - higher growth scenario - 2015; 2020
      • lower broadband growth
        • Table Forecast broadband subscribers - lower growth scenario - 2015; 2020
    • FORECASTS - MOBILE MARKET 2015; 2020
      • higher mobile market growth
        • Table Forecast mobile subscribers - higher growth scenario - 2015; 2020
      • lower mobile market growth
        • Table Forecast mobile subscribers - lower growth scenario - 2015; 2020

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report