Peru - Telecoms, Mobile and Broadband - Statistics and Analyses

Peru - Telecoms, Mobile and Broadband - Statistics and Analyses

Payment delays due to the pandemic putting Peru's telcos under pressure

While Peru has been proactive against the pandemic, the economic cost has been high. The country's GDP declined by 40% in April 2020 due to lockdown measures and the state of emergency has had an economic impact on the telecommunications sector through the significant increase in delinquency in payment of services, affecting operators' sustainability and continuity.

According to August indicators, GDP growth continues on a downward trend, far from the levels of 2019. The unemployment situation and the fall in household income are reflected in high levels of non-payment for telecommunication services. However, despite widespread non-payment, the demand for telecommunication services has increased significantly during quarantine, with some operators witnessing a 60% increase in data traffic since lockdown.

Peru's fixed-line teledensity remains among the lowest in South America, with obstacles to fixed-line growth including widespread poverty, fixed-to-mobile substitution, expensive telephone services, and geographical inaccessibility in the rugged Andean mountains and lowland Amazon jungles. The government is addressing these shortcomings via ambitious investment plans to deploy telecom infrastructure and services in underserved areas. Most of the work was complete by the end of 2017, when eight regional fibre-based networks were connected to the National Fibre-Optic Backbone.

Broadband penetration in Peru is considerably lower than the Latin American average, despite government efforts to encourage the development of the sector.

Mobile penetration is on a par with the regional average, though high penetration is attributed to the popular use (especially among urban dwellers) of multiple mobile subscriptions. This phenomenon is becoming less pronounced as network operators respond to market competition by providing generous data and voice bundles (so obviating the need for SIM cards from different networks) and as the regulator endeavours to remove illegal devices and unregistered SIM cards from the market.

Telefónica Perú (trading as Movistar Perú) is the leading player in the mobile market, followed by Claro Perú, Entel Perú and Viettel (trading as Bitel). The market still has considerable potential to expand, especially given the country's low fixed broadband penetration which has encouraged the uptake of mobile data services. By late 2020, the mobile broadband penetration rate reached 69% of the population.

This report provides an overview of Peru's telecom infrastructure, together with profiles of the major fixed-line operators and a wide range of relevant statistics and analyses. The report also reviews the mobile market, including data on the key operators and their strategies in a highly competitive environment in addition the report covers the fixed and fixed-wireless broadband segments, including subscriber forecasts.

BuddeComm notes that the outbreak of the Coronavirus is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

Osiptel prohibits telcos from terminating services for non-payment to guarantee service continuity during pandemic;
MTC grants temporary spectrum concessions to operators;
Government facilitates virtual learning during the lockdown by purchasing 840,000 tablets with internet connectivity to be distributed to low-income students lacking internet access internet;
MTC amends 2012 law on the promotion of broadband services, which also set out the guidelines for the construction and management of the RDNFO;
Azteca Communications, operating the RDFNO, proposes terminating the RDNFO concession;
Committee on Transport and Communications submits bill to guarantee customers' internet access speeds are at least 90% of the contracted rate;
Microlink announces partnership to deliver LoRaWAN networks across Colombia and Peru;
MTC asserts that 18 of 21 regional fibre optic projects will be operational by end-2021;
IHS Holding acquires telecom infrastructure provider Cell Site Solutions CSS;
Alphabet subsidiary Loon signs deal with Telefónica to provide wireless internet connectivity to remote areas;
Report update includes the regulator's market data to June 2020, telcos' financial and operating data to Q3 2020, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:

Telefónica del Perú (Movistar), América Móvil Perú (Claro Perú), Entel Perú, Americatel Perú, Terra Perú, EMax, Olo del Perú (Olo), VelaTel/Perusat, Star Global Com, Best Cable Peru, DirecTV, Entel Perú, Viettel Peru (Bitel), Virgin Mobile, Gamacon, IDT, Convergia, Gilat To Home Perú, Rural Telecom, Valtron


1 Key statistics
2 Country overview
3 Covid-19 and its impact on the telecom sector
3.1 Economic considerations and responses
3.2 Mobile devices
3.3 Subscribers
3.4 Infrastructure
4 Telecommunications market
4.1 Historical overview
4.2 Market analysis
5 Regulatory environment
5.1 Historical overview
5.2 Regulatory authorities
5.3 Fixed-line developments
5.4 Mobile network developments
6 Mobile market
6.1 Market analysis
6.2 Mobile statistics
6.3 Mobile infrastructure
6.4 Major mobile operators
6.5 Mobile content and applications
7 Fixed-line broadband market
7.1 Market analysis
7.2 Hybrid Fibre Coax (HFC) networks
7.3 Digital Subscriber Line (DSL) networks
7.4 Fibre-to-the-Premises (FttP) networks
7.5 Other fixed broadband services
8 Digital economy
8.1 Internet of Things
8.2 E-Government
8.3 E-Learning
8.4 e-Commerce
9 Fixed network operators
9.1 Introduction
9.2 Movistar Perú (Telefónica)
9.3 Claro Perú (América Móvil)
9.4 Americatel Perú
9.5 Gilat To Home Perú (GHP)
10 Telecommunications infrastructure
10.1 Overview of the national telecom network
10.2 International infrastructure
11 Appendix Historic data
12 Glossary of abbreviations
13 Related reports
Table 1 Top Level Country Statistics and Telco Authorities Peru 2020 (e)
Table 2 Evolution of GDP in Peru 2010 - 2020
Table 3 Development of telecom investment and revenue (S/.) 2010 - 2020
Table 4 Change in the share of fixed and mobile connections - 2010 - 2020
Table 5 Percentage of households with access to ICT services - 2010 - 2019
Table 6 Change in telecom service connections, by type 2010 - 2020
Table 7 Change in interconnection revenue 2013 - 2019
Table 8 Change in the number of annual fixed number portings 2014 - 2020
Table 9 Accumulated mobile number portings by operator July 2014 August 2020
Table 10 Change in the number of annual mobile number portings 2014 - 2020
Table 11 Change in the number of mobile subscribers and penetration 2010 - 2025
Table 12 Mobile market share of subscribers by operator 2010 - 2020
Table 13 Change in the number of mobile prepaid/postpaid subscribers (million) 2010 - 2020
Table 14 Change in mobile market revenue 2013 - 2019
Table 15 Change in SMS traffic 2010 - 2020
Table 16 Change in MMS traffic 2010 - 2020
Table 17 Change in the number of active mobile broadband subscribers and penetration 2010 - 2025
Table 18 Change in the number of Movistar Peru's mobile subscribers 2010 - 2020
Table 19 Development of Movistar Peru's mobile revenue ( million) 2010 - 2020
Table 20 Development of Claro Peru's mobile revenue (S/. million) 2010 - 2020
Table 21 Change in the number of Claro Peru's mobile subscribers 2009 - 2020
Table 22 Growth in the number of Entel Peru's mobile subscribers 2010 - 2020
Table 23 Change in the number of Entel Peru's prepaid and contract mobile subscribers (million) 2017 - 2020
Table 24 Development of Entel Peru's revenue (S/.) 2013 2020
Table 25 Development of Entel Peru's revenue ($ million) 2013 2020
Table 26 Entel Peru mobile ARPU ($) 2015 2020
Table 27 Change in the number of Viettel Peru's mobile subscribers 2014 - 2020
Table 28 Change in the number of Flash Mobile's mobile subscribers 2016 - 2020
Table 29 Change in fixed internet revenue 2013 - 2019
Table 30 Change in the share of fixed broadband subscribers by operator 2010 - 2020
Table 31 Internet users and user penetration rate 2010 2019
Table 32 Change in the number of fixed-line broadband subscribers and penetration 2010 - 2025
Table 33 Fixed broadband technologies market share 2010 - 2020
Table 34 Growth in the number of cable broadband subscribers 2010 - 2020
Table 35 Decline in the number of DSL subscribers 2010 - 2020
Table 36 Growth in the number of Telefónica Peru's broadband subscribers 2010 - 2019
Table 37 WiMAX broadband subscribers 2010 - 2019
Table 38 Entel Peru fixed wireless subscribers 2017 - 2020
Table 39 Other broadband subscribers 2012 - 2020
Table 40 Operator market share of fixed lines in service 2010 - 2020
Table 41 Development of Movistar's financial data by service (S/. million) 2009 2020
Table 42 Development of Movistar Peru's financial data ( million) 2009 - 2020
Table 43 Movistar fixed-line accesses 2010 - 2019
Table 44 Change in the number of Claro Peru's fixed-line RGUs 2010 - 2020
Table 45 Development of Claro Peru's fixed-line revenue 2009 - 2020
Table 46 Development of Americatel Peru's revenue 2009 - 2020
Table 47 Change in the number of Americatel Peru's fixed lines 2010 - 2020
Table 48 Decline in the number of installed fixed-lines 2010 - 2020
Table 49 Decline in the number of fixed-lines in service and teledensity 2010 - 2025
Table 50 Change in fixed voice revenue 2013 - 2019
Table 51 Fixed wireless lines in service 2008 - 2019
Table 52 International bandwidth 2010 - 2017
Table 53 Historic - Evolution of GDP in Peru 2000 - 2009
Table 54 Historic - GDP and telecom revenue (S/.) 2006 - 2009
Table 55 Historic - Fixed and mobile market share of connections - 1997 - 2009
Table 56 Historic - Operator concessions by service - 2007 - 2015
Table 57 Historic - Telecommunications revenue 2001 - 2015
Table 58 Historic - Telecommunications sector investment 2010 - 2015
Table 59 Historic - Annual change in telecom service connections, by type 1997 - 2009
Table 60 Historic - Fixed lines in service operator market share 2001 - 2009
Table 61 Historic - Movistar fixed-line accesses 2001 - 2009
Table 62 Historic - Claro fixed line RGUs 2001 - 2009
Table 63 Historic - Americatel Peru fixed lines 2002 - 2009
Table 64 Historic - Fixed-line subscriptions 2001 - 2009
Table 65 Historic - International bandwidth 2000 - 2009
Table 66 Historic - Fixed broadband market share by operator 2007 - 2009
Table 67 Historic - Internet users and user penetration rate 1997 - 2009
Table 68 Historic - Broadband subscribers and penetration rates 1999 - 2009
Table 69 Historic - Fixed broadband technologies market share 2000 - 2009
Table 70 Historic - Cable modem subscribers 2000 - 2009
Table 71 Historic - DSL subscribers 2000 - 2009
Table 72 Historic - Telefónica broadband subscribers 2005 - 2009
Table 73 Satellite broadband subscribers 2010 - 2016
Table 74 Historic - Mobile subscribers and penetration rate 1997 - 2009
Table 75 Historic - Mobile market share by operator 2001 - 2009
Table 76 Historic - Mobile prepaid/postpaid subscribers 2004 - 2009
Table 77 Historic - SMS traffic 2004 - 2009
Table 78 Historic - MMS traffic 2004 - 2009
Table 79 Historic - Movistar Peru mobile subscribers 2001 - 2009
Table 80 Historic - Claro Peru mobile subscribers 2001 - 2009
Table 81 Historic - Entel Peru mobile subscribers 2001 - 2009
Table 82 Historic Development of GDP) 2010 - 2015
Chart 1 Development of telecom investment and revenue (S/.) 2010 - 2020
Chart 2 Change in the share of fixed and mobile connections - 2010 - 2020
Chart 3 Percentage of households with access to ICT services - 2010 2019
Chart 4 Change in telecom service connections, by type 2010 - 2020
Chart 5 Change in the number of mobile subscribers and penetration 2010 2025
Chart 6 Mobile market share of subscribers by operator 2010 - 2020
Chart 7 Change in the number of mobile prepaid/postpaid subscribers 2010 - 2020
Chart 8 Change in SMS traffic 2010 - 2020
Chart 9 Change in MMS traffic 2010 - 2020
Chart 10 Change in the number of active mobile broadband subscribers and penetration 2010 - 2025
Chart 11 Change in the number of Movistar Peru's mobile subscribers 2010 - 2020
Chart 12 Development of Movistar Peru's mobile revenue ( million) 2010 - 2019
Chart 13 Development of Claro Peru's mobile revenue (S/. million) 2010 - 2020
Chart 14 Change in the number of Claro Peru's mobile subscribers 2009 - 2020
Chart 15 Growth in the number of Entel Peru's mobile subscribers 2010 - 2020
Chart 16 Change in the number of Entel Peru's prepaid and contract mobile subscribers (million) 2017 - 2020
Chart 17 Development of Entel Peru's revenue (S/.) 2013 2020
Chart 18 Development of Entel Peru's revenue ($ million) 2013 2020
Chart 19 Change in the number of Viettel Peru's mobile subscribers 2014 - 2020
Chart 20 Change in the share of fixed broadband subscribers by operator 2010 - 2020
Chart 21 Internet users and user penetration rate 2010 2019
Chart 22 Change in the number of fixed-line broadband subscribers and penetration 2010 - 2025
Chart 23 Fixed broadband technologies market share at a glance 2010 - 2020
Chart 24 Growth in the number of cable broadband subscribers 2010 - 2020
Chart 25 Decline in the number of DSL subscribers 2010 - 2020
Chart 26 Operator market share of fixed lines in service 2010 - 2020
Chart 27 Development of Movistar's financial data by service (S/. million) 2009 2020
Chart 28 Decline in the number of fixed-lines in service and teledensity 2010 - 2025
Exhibit 1 Map of Peru
Exhibit 2 Bands and spectrum

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